by Shane Henson — June 29, 2011—Almost two-thirds of architects recently surveyed by the American Institute of Architects (AIA) reported that they have at least one project that is stalled due to lack of financing, despite record-low interest rates.
The survey of business activity was taken as part of the AIA’s Architectural Billings Index, a monthly economic indicator of construction activity that provides a nine to 12-month glimpse into the future of nonresidential construction spending activity. Of the 63 percent of firms surveyed with stalled projects, the average value of each project was almost $50 million per firm.
Among the survey’s major findings:
- The availability of construction project financing remains a major issue for many architecture firms. In April, 57 percent of survey respondents rated the issue as very or extremely serious, and an additional 30 percent indicated that it is a somewhat serious issue.
<b/li> - Nearly half of respondents (45 percent) think that the availability of credit has become more restrictive over the past year, with just 16 percent seeing an easement in credit availability.
“This data only serves to reinforce the dire need for lawmakers to act to alleviate a credit crunch that continues to plague one of the economy’s biggest job-creating engines— the design and construction industry,” said AIA president Clark Manus. “We are on the front lines of an industry that accounts for $1 in $9 of U.S. gross domestic product, according to the U.S. Census Bureau.”
