New York offers ray of hope for suffering US market

Architects in the US have been hit hard by the recent financial turmoil, according to statistics released by the American Institute of Architects (AIA).

The AIA’s architectural billings index, which includes monthly survey results from US practices, has been below 50 for seven consecutive months – numbers below 50 on the index represents a decline in billings.

The AIA, which expects retail and hotel construction to contract by 10% and office construction by 12% in 2009, has set up an online resource to help architects through the downturn.

Kermit Baker, the AIA’s chief economist, said: “The more pessimistic forecasts this round stem from the lack of growth in the overall economy, the ripple effect from the faltering housing market, and the anxiety in the credit markets [which is] leading to a restriction in lending for all types of construction projects.”

“The one bit of good news is that this contraction is likely to be considerably milder than the construction recessions of the early 1990s and earlier this decade.”

“The one bit of good news is that this contraction is likely to be considerably milder than the construction recessions of the early 1990s and earlier this decade.”

Kermit Baker, the AIA’s chief economist

The index for enquiries for new projects is on the up, however, at 52.4, with demand for institutional projects, including schools and hospitals, still strong.

And a construction forecast for New York by the New York Building Congress (NYBC) also delivered positive news, although it warned that the full effects of the economic downturn might not be felt until 2010.

The NYBC expects spending on construction in New York to exceed $33 billion by the end of 2008.

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