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
Will Alsop to head up new RMJM studio
Will Alsop, the internationally acclaimed British architect and designer of the Glenwood Waterfront project on the Hudson River, is to turn his attention once again to the U.S. after announcing he is to create a studio called “Will Alsop at RMJM,” as part of the RMJM worldwide architectural firm.
| Aug 11, 2010
AECOM, WATG top BD+C's ranking of the nation's 75 largest hotel design firms
A ranking of the Top 75 Hotel 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
Parsons Brinckerhoff, Dewberry among nation's largest multifamily design firms, according to BD+C's Giants 300 report
A ranking of the Top 75 Multifamily Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
USGBC’s Greenbuild 2009 brings global ideas to local main streets
Save the planet with indigenous knowledge. Make permanent water part of your life. Dive deep water for clues to environmental success. Connect site selection to successful creative concepting. Explore the unknown with Discovery Channel’s best known guide. These are but a few of the big ideas participants can connect to at USGBC’s Greenbuild International Conference and Expo, taking place on November 11-13, 2009 in Phoenix, Ariz.
| Aug 11, 2010
Goettsch Partners wins design competition for Soochow Securities HQ in China
Goettsch Partners (GP) has been selected as the winning firm in the competition to design the Soochow Securities Headquarters, the new office and stock exchange building for Soochow Securities Co. Ltd. The 21-story, 441,300-square-foot project includes 344,400 square feet of office space, an 86,100-square-foot stock exchange, meeting rooms, classrooms, a cafeteria, and underground parking for 400 cars and 800 bicycles.
| Aug 11, 2010
RMJM unveils design details for $1B green development in Turkey
International architecture company RMJM today announced details of the $1 billion Varyap Meridian development it is designing in Istanbul’s new residential and business district, which will be one of the "greenest" projects in Turkey. The luxury 372,000-square-meter development on a site totalling 107,000 square meters will be located in the Atasehir district of Istanbul, which the Turkish government intends to transform into the country’s new financial district and business center.
| Aug 11, 2010
Urban Land Institute honors five 'outstanding' developments in Europe, Middle East, and Africa
Five outstanding developments have been selected as winners of the Urban Land Institute (ULI) 2009 Awards for Excellence: Europe, Middle East, and Africa (EMEA) competition. This year, the competition also included the announcement of two special award winners. The Awards for Excellence competition is widely regarded as the land use industry’s most prestigious recognition program.
