Report finds credit crunch accounts for 20% of nation’s stalled projects

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

Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories.

| Aug 19, 2022

Cuningham appoints Jacqueline Dompe as new Chief Executive Officer

Cuningham, a national design firm, is thrilled to announce the appointment of Jacqueline Dompe as the firm’s Chief Executive Officer (CEO).

| Aug 19, 2022

Future sea rise could expose 720,000 more people on East Coast to flooding

An analysis by NPR based on modeling from the National Hurricane Center for New York City, Washington, D.C., and Miami-Dade County found future sea rise could expose about 720,000 more people to damaging floods later this century.

| Aug 19, 2022

Manassas Museum renovated to reimagine a civic design & engage the community

Manassas, VA has recently added to its historic Manassas Museum.

Architects | Aug 18, 2022

GSA names Charles Hardy, AIA, CCM, Chief Architect at GSA Public Buildings Service

The U.S. General Services Administration (GSA) has named Charles (Chuck) Hardy as GSA’s next Chief Architect, effective August 14, 2022. A licensed architect, workplace strategist, and certified construction manager, Hardy’s career with GSA spans more than 31 years, beginning in GSA’s Great Lakes Region as an architect and project manager.

| Aug 18, 2022

U.S. Treasury moves to boost affordable housing

The Department of the Treasury recently announced new guidance to “increase the ability of state, local, and tribal governments to use American Rescue Plan (ARP) funds to boost the supply of affordable housing in their communities,” according to a news release.

Thermal and Visual Delight in Architecture, with Lisa Heschong, FIES

Daylighting | Aug 18, 2022

Lisa Heschong on 'Thermal and Visual Delight in Architecture'

Lisa Heschong, FIES, discusses her books, "Thermal Delight in Architecture" and "Visual Delight in Architecture," with BD+C's Rob Cassidy.

| Aug 18, 2022

The Illinois Institute of Technology restores three Mies van der Rohe buildings

With Dirk Denison Architects and Gilbane Building Company, the Illinois Institute of Technology has recently completed a $70 million housing project that has restored three Ludwig Mies van der Rohe buildings.