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
| Aug 11, 2010
CHPS debuts high-performance building products database
The Collaborative for High Performance Schools (CHPS) made a new tool available to product manufacturers to help customers identify building products that contribute to sustainable, healthy, built environments. The tool is an online, searchable database where manufacturers can list products that have met certain environmental or health standards ranging from recycled content to materials that contribute to improved indoor air quality.
| Aug 11, 2010
ICC launches green construction code initiative for commercial buildings
The International Code Council has launched its International Green Construction Code (IGCC) initiative, which will aim to reduce energy usage and the carbon footprint of commercial buildings.Entitled “IGCC: Safe and Sustainable By the Book,” the initiative is committed to develop a model code focused on new and existing commercial buildings. It will focus on building design and performance.
| Aug 11, 2010
Green Building Initiative launches two certification programs for green building professionals
The Green Building Initiative® (GBI), one of the nation’s leading green building organizations and exclusive provider of the Green Globes green building certification in the United States, today announced the availability of two new personnel certification programs for green building practitioners: Green Globes Professional (GGP) and Green Globes Assessor (GGA).
| Aug 11, 2010
Potomac Valley Brick launches brick design competition with $10,000 grand prize
Potomac Valley Brick presents Brick-stainable: Re-Thinking Brick a design competition seeking integrative solutions for a building using clay masonry units (brick) as a primary material.
| Aug 11, 2010
Outdated office tower becomes Nashville’s newest boutique hotel
A 1960s office tower in Nashville, Tenn., has been converted into a 248-room, four-star boutique hotel. Designed by Earl Swensson Associates, with PowerStrip Studio as interior designer, the newly converted Hutton Hotel features 54 suites, two penthouse apartments, 13,600 sf of meeting space, and seven “cardio” rooms.
| Aug 11, 2010
HDR, Perkins+Will top BD+C's ranking of the nation's 100 largest healthcare design firms
A ranking of the Top 100 Healthcare Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Steel Joist Institute announces 2009 Design Awards
The Steel Joist Institute is now accepting entries for its 2009 Design Awards. The winning entries will be announced in November 2009 and the company with the winning project in each category will be awarded a $2,000 scholarship in its name to a school of its choice for an engineering student.
