flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Will Trump-led America be a boon or bust for U.S. AEC firms?

Building Team

Will Trump-led America be a boon or bust for U.S. AEC firms?

Regardless of which side of the aisle you stand on, election night was a jaw-dropping moment. 


By David Barista, Editorial Director | December 14, 2016

Pixabay Public Domain

November 2016 will most certainly go down in the books as one of the most memorable months in recent decades. If the Chicago Cubs winning the World Series in dramatic Game 7 fashion wasn’t enough to shock you, then the events that unfolded during the late evening on Nov. 8 likely were.

Regardless of which side of the aisle you stand on, election night was a jaw-dropping moment. Donald Trump’s own campaign advisors, along with some of his supporters and pundits, admitted to being astonished as the story unfolded on election night.

On the morning of Election Day, the New York Times set the odds of Trump winning at a scant 15%. “Mrs. Clinton’s chance of losing is about the same as the probability that an N.F.L. kicker misses a 37-yard field goal,” they wrote. Well, Hillary missed a chip shot, and the NYT editors—like many in the media—were left with egg on their face for grossly underestimating Trump’s chances. It was a Dewey Defeats Truman moment.

What does a Trump-led America (coupled with a GOP-controlled Congress) mean for the AEC industry? As with any election, it’s a mixed bag of the good, the bad, and the unknown.
The good: Trump proposes spending up- wards of $1 trillion to rebuild the nation’s roads, bridges, tunnels, water systems, and airports as part of a massive infrastructure bill. While not primarily buildings work, this level of investment would most certainly create real estate development opportunities and needs—whether directly or indirectly—for the AEC community. Infrastructure investment is one of the few pressing issues that garners almost universal support among political leaders in Washington. The trillion-dollar question is, How do we pay for it? Trump’s answer: public-private partnerships and other creative financing methods.

The bad: In his 100-day action plan, Trump outlines several measures that could hit AEC firms in the pocketbook in the near term. On the list is Obamacare, which Trump hopes to repeal and replace with traditional HSA and health insurance initiatives. This move could cause healthcare operators to take a “let’s wait and see” approach to real estate investments, much like they did during the implementation of Obamacare. Having healthcare owners hit the pause button for the second time in six years could severely impact AEC rms. At $87 billion in annual construction spending, healthcare is the largest sector in the nonresidential market.

The unknown: Given the GOP’s contentious relationship with Trump during the election cycle, we could be in for four more years of gridlock in Washington. It’s too early to predict how his ideas will be received by the house and senate.

A recent survey of 306 BD+C readers paints a picture of cautious optimism for AEC firms. Half of the respondents (50.3%) predict that 2017 will be an “excellent” or “very good” business year for their firm. More than half (55.3%) expect their firm’s revenue to increase next year; just 11.5% are forecasting a drop.

On the flip side, when asked to identify their biggest concerns heading into 2017, nearly a third (31.7%) cited “business impacts from the Presidential election” as a top-three burden— only behind “general economic conditions” and “competition from other firms.”

As we head toward Inauguration Day, all we can do is hope the President-elect delivers on much more good than bad.

Related Stories

Coronavirus | May 20, 2022

Center for Green Schools says U.S. schools need more support to fight COVID-19

  The Center for Green Schools at the U.S. Green Building Council released a new report detailing how school districts around the country have managed air quality within their buildings during the second year of the COVID-19 pandemic.

Regulations | May 20, 2022

Biden’s Clean Air in Buildings Challenge aims to reduce COVID-⁠19 spread

The Biden Administration recently launched the Clean Air in Buildings Challenge that calls on all building owners and operators, schools, colleges and universities, and organizations to adopt strategies to improve indoor air quality in their buildings and reduce the spread of COVID-19.

Building Team | May 20, 2022

Caltech breaks ground on a new center to study climate and sustainability

The California Institute of Technology (Caltech) recently broke ground on its Resnick Sustainability Resource Center.

Laboratories | May 20, 2022

Brutalist former Berkeley Art Museum transformed into modern life science lab

After extensive renovation and an addition, the former Berkeley Art Museum and Pacific Film Archive at the University of California, Berkeley campus reopened in May 2022 as a modern life science lab building.

Sports and Recreational Facilities | May 19, 2022

Northern Arizona University opens a new training center for its student athletes

In Flagstaff, Ariz. Northern Arizona University (NAU) has opened its new Student-Athlete High Performance Center. 

Energy-Efficient Design | May 19, 2022

Shipping containers used to build Research Triangle Park’s first community gathering space

Shipping containers were the prominent building material used to construct Boxyard RTP, the first public community and gathering place in North Carolina’s Research Triangle Park (RTP). 

Mixed-Use | May 19, 2022

Seattle-area project will turn mall into residential neighborhood

A recently unveiled plan will transform a 463,000 sf mall into a mixed-use destination site in the Seattle suburb of Bellevue, Wash.

Codes and Standards | May 19, 2022

JLL launches non-profit aiming to mitigate climate change

Real estate and investment management firm JLL recently launched JLL Foundation, a non-profit dedicated to making a long-term impact on environmental sustainability.

Office Buildings | May 19, 2022

JLL releases its 2022 Office Fit Out Guide

JLL’s 2022 Office Fit Out Guide report provides benchmark costs to build out a range of office types across major markets in the United States and Canada.

Biophilic Design | May 18, 2022

Horticulturalists conduct research study to understand the value of biophilic design

Benholm Group, horticulturalists that have pioneered the use of plants for interiors over the past 27 years, are collaborating on a research study to understand the value of biophilic design, according to a news release.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021