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
| Jun 8, 2012
Thornton Tomasetti/Fore Solutions provides consulting for renovation at Tufts School of Dental Medicine
Project receives LEED Gold certification.
| Jun 8, 2012
Allsteel names Kris Yates to head architectural products group
Yates is responsible for the start up, launch and ongoing sales and marketing of Allsteel’s new Beyond movable walls.
| Jun 8, 2012
Chestnut Hill College dedicates Jack and Rosemary Murphy Gulati complex
Casaccio Yu Architects designed the 11,300-sf fitness and social complex.
| Jun 7, 2012
Waterline exhibition displays visions for re-thinking the Chicago River
The designs of Waterline showcase why the Chicago River should once again be considered the city’s most important asset and sets the stage for increased awareness, education and reinvention of the River.
| Jun 7, 2012
WDMA and FMA to affiliate and integrate operations
Over the coming months both organizations will begin the process of formalizing the details of the agreement for final approval by both organizations, with the formal change expected to take effect in January 2015.
| Jun 7, 2012
Craig joins Cannon Design as associate principal
Craig will work closely with the firm's Corporate/Commercial Interiors leadership to help facilitate initiatives that strengthen awareness around workplace innovation and offer counsel on strategic workplace decisions.
| Jun 7, 2012
Stantec publishes 2011 corporate Sustainability Report
Stantec's fifth annual Sustainability Report was prepared in accordance with the internationally recognized G3.1 Sustainability Reporting Guidelines, developed by the Global Reporting Initiative.
| Jun 6, 2012
KPF designs tower for Yongsan IBD
The master plan, created by Studio Daniel Libeskind, is a dynamic urban environment containing contributions from 19 different architects practicing in diverse locations around the globe.
| Jun 6, 2012
SOM urges Chicago tenants to partner with landlords to cut energy use
Tenants can exceed building energy challenge targets recently announced by Mayor Emanuel.
| Jun 6, 2012
KLMK Group awarded contract with Parkland Health & Hospital System in Texas
KLMK will also provide planning guidance in all aspects of the project related to facility activation.
