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 14, 2012
SOM Foundation announces prize recipients for 2012
Submissions for the SOM Prize were received from students at 34 schools in the U.S.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.
| Aug 9, 2012
DSGW Architects welcomes new employees
Three new employees located in DSGW's Duluth office.
| Aug 9, 2012
DMR Architects converts bank building to municipal court
The project consisted of a $4 million renovation to a 2-story building totaling 13,000-sf.
| Aug 8, 2012
BD+C wins six B2B journalism awards
BD+C wins two national awards, three regional awards, and a regional Graphical Excellence award.
| Aug 8, 2012
BIM’s future up in the cloud
The AEC industry is on the cusp of a still more significant evolution with cloud computing.
| Aug 8, 2012
Giants 300 Sports Facilities Report
BD+C's Giants 300 Top 25 AEC Firms in the Sports Facilities sector.
| Aug 8, 2012
Giants 300 Science & Technology Report
BD+C's Giants 300 Top 25 AEC Firms in the Science & Technology sector.
| Aug 7, 2012
Pioneering revival
Financial setbacks didn’t stop this Building Team from transforming the country’s first women’s medical school into a new home for college students.
