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Architects Suffering as Financial Crisis Continues

A fluctuating U.S. financial market has created economic turmoil as Americans become more and more uncertain about what the future holds.  This has translated into a major decrease in the credit market's profitability and substantial job cuts throughout the country.  Many industries have distanced themselves from the economic downturn in industries that are not directly related to the crisis.  However, this isn't the case for those of us involved in the construction industry, which depends on strong financial markets to fund new building projects.  

This leaves architects in a very bad position, as most in the profession depend on investors to request designs months in advance.  While laborers are still working on projects that were planned months ago, architects are waiting for new deals to come around.  The Architecture Billings Index or ABI reported the lowest score in the index's history in August.  Even worse, construction revenues are projected to drop even lower for 2009.  The AIA's Consensus Construction Forecast predicts retail and hotel building will drop by 10% in 2009 and office construction is projected to drop 12%.

It is difficult to tell whether consumer confidence will increase enough before the end of the year to make a difference for the industrial and commercial construction industries.  However, one thing is clear, if things don't change soon, many of us in the industry will be looking for new jobs.  I wish everyone the best of luck in the next few months; I believe hope will be restored as we emerge into 2009!  If you have anything to add or a question, leave a comment below.

source: www.archrecord.com

2012 Olympic Construction Project in London

The cities who hold the summer Olympics every 4 years benefit from the event in a multitude of ways.  Outsiders are exposed to a country's culture and values, which can increase understanding, and the influx of visitors brings billions of dollars into these regions.  The recent standard set by Beijing, China has put a lot of pressure on the Olympics' next stop, London, England.  England's political and Olympic officials are up to the challenge, however, and have begun "Europe's largest regeneration project" in the previously neglected area of the Lower Lea Valley.

The project calls for the construction of a park almost 1 square mile, including gardens, wildlife areas, and amphitheaters for outdoor concerts and festivals.  This project will mark the largest constructed park in London since the 19th century.  Architects have included paths for bicyclists and pedestrians throughout the park that connect the Valley with the Thames River nearby.

Sustainability is the main concern, as many Olympic projects can become grandiose and unrealistic for long term use.  The goal will be to create excitement and hype around the project without alienating residents by creating a 'one and done' feature within this historic city.  Other projects being complete for the 2012 Games include the Athletes Village, the city's largest natatorium, and a new Olympic Stadium, all of which maintain this idea of longevity.  The juxtaposition of these new developments amongst the background of a rich European architectural history will be exciting to see, and with each Olympic Games being more anticipated than the last, the entire event is sure to be a success worldwide.  

source: http://archrecord.construction.com

Commercial Construction on the Rise again?

In the midst of a terrible economic slump it’s hard to imagine an increase in commercial construction contracting. However, this is the case in several parts of the country, and as these contracts continue to be developed, the future begins to appear more and more promising; hopefully these local increases will continue to move throughout the country and stimulate our country’s economy.

In the case of Birmingham, Alabama, commercial construction in September was up 52 percent from 2007; from $45.5 million to $69.3 million. Although year-to-date numbers are down, contractors in Birmingham are beginning to look more optimistically at the current economic situation. With a continued increase in commercial developments, many cities in the country may begin pulling out of this recession, or at least set themselves up to emerge on top when the economy turns around.

It is still unclear what the reason for this commercial contract increase really is. It has been suggested by economists that the dramatic decrease in the price of many construction materials over the past few months may have allowed contractors to bid at lower costs. Others claim investors want in at the low end, hoping to cash in when the market turns around. Either way, this micro-boom in the commercial construction market may provide the hope and confidence necessary for investors to regain faith in our markets.

What do you think? What have you heard about the commercial construction market in your area? If you have an idea about what’s going on in your area leave a comment below!

source: www.bizjournals.com