The American Institute of Architects (AIA) released a comprehensive report, which concludes that the major obstacle holding back job creation in the U.S. is the persistent lack of construction financing, despite record low interest rates.
“This report should lay to rest any doubt about what is a key source for holding back job creation in the United States,’ said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Product.”
The report found:
- The share of projects stalled due to financing problems through August 2011 has almost doubled since 2008
- One-in-five stalled projects are directly resulting from financing problems
- Financing problems account for a higher share of stalled projects in the education and multi-family sector
- More than 25% of projects reported as stalled due to the credit crunch could qualify for LEED, Green Globes, or other green certification status
- Financing issues are less of a factor holding back projects in the manufacturing, private healthcare, and retail environments
“Whatever, the reason – be it over-regulation, the threat of a double-dip recession or the reluctance to have too many loans on the books, lenders are just not lending to a major job-producing sector of the American economy,” Baker noted. “Until more credit is extended, the potential of non-residential construction to promote greater levels of economic growth will not be realized.” BD+C
Related Stories
| Nov 11, 2011
AIA: Engineered Brick + Masonry for Commercial Buildings
Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| Nov 11, 2011
How Your Firm Can Win Federal + Military Projects
The civilian and military branches of the federal government are looking for innovative, smart-thinking AEC firms to design and construct their capital projects. Our sources give you the inside story.
| Nov 10, 2011
BD+C's 28th Annual Reconstruction Awards
A total of 13 projects recognized as part of BD+C's 28th Annual Reconstruction Awards.
| Nov 10, 2011
Grousbeck Center for Students & Technology opens doors
New Perkins School for the Blind Building is dedicated to innovation, interaction, and independence for students.
| Nov 10, 2011
Skanska Moss to expand and renovate Greenville-Spartanburg International Airport
The multi-phase terminal improvement program consists of an overall expansion to the airport’s footprint and major renovations to the existing airport terminal.
| Nov 10, 2011
Suffolk Construction awarded MBTA transit facility and streetscape project
The 21,000-sf project will feature construction of a cable-stayed pedestrian bridge over Ocean Avenue, an elevated plaza deck above Wonderland MBTA Station, a central plaza, and an at-grade pedestrian crossing over Revere Beach Boulevard
| Nov 10, 2011
Thornton Tomasetti’s Joseph and Choi to co-chair the Council on Tall Buildings and Urban Habitat’s Outrigger Design Working Group
Design guide will describe in detail the application of outriggers within the lateral load resisting systems of tall buildings, effects on building behavior and recommendations for design.
| Nov 9, 2011
Lincoln Center Pavilion wins national architecture and engineering award
The project team members include owner Lincoln Center for the Performing Arts, New York; design architect and interior designer of the restaurant, Diller Scofidio + Renfro, New York; executive architect, FXFOWLE, New York; and architect and interior designer of the film center, Rockwell Group, New York; structural engineer Arup (AISC Member), New York; and general contractor Turner Construction Company (AISC Member), New York.