Stimulus dollars helping architecture industry - Kansas City Business Journal:

amesit.wordpress.com
Both projects have been made possibled by the flow of federal stimulues dollarsfrom Washington, D.C., to South The projects are a hopeful sign to some local architectural firms that the economt and their industry are startin to turn around, after a bleak The improvement, they say, is due, in to the $787 billion stimulus package. “kI definitely see an uptick in the saidCathy Boyce, principal at PGAL’ds Boca Raton office. “I remember last summer theree was absolutely nothinggoing on: not not public, nothing.
Now, we’re starting to see some requests for proposalsgoinbg out, particularly in the government What PGAL and other local architectural firms are seeing mirror findings in recently released data from the . The group’d well-watched architectural billingsindex – a monthlh survey of architectural firms to see if their billings and inquiries have dropped or remained steady – show s that business is on a slow, but steady, both in the South and nationwide. According to the AIA research, architectd reported a slight rise in business inquiriesin April, the fourth straight monthh of a rise.
Additionally, the researchb showed a rise inbillings – projectxs for which money is already changing hands – in the southern regionh for the fourth straight month. the group found that billings nationally fell slightlyin April, from an index level of 43.7 to “Picked up is a relative term,” said Kermi t Baker, the AIA’s chief economist. “In the last two months, the numberx have moved from a very steep decline to a verymodes decline. That’s important because that’ds how markets turn around.” In June 2007, the billingx index hit 59. For South Florida architectural recovery is aslow process.
For those that specializw in private projects, particularly residential or mixede use, it’s not yet withih reach, as banks appea r still reluctant tofund development. But, thosed who pursue government projects are starting to feel hopeful as stimulus dollars finally begin trickling down toSoutu Florida. “I think it’s a qualifiedf hopefulness, probably more so today than I could have said a few months saidLarry Levis, division manager of Corap Gables-based PBS&J. “The number of RFPs [requestsa for proposals] coming out of South Florida was very low a fewmonths ago. In the last month or so, it’s picking up.
” As an example, Levis pointed to a recent RFP sent out by the villaged ofPalmetto Bay, in southern Miami-Dade for design of a new $3.5 million city hall. “That’s kind of emblematic of what’s he said. “It lookee like government entities put on hold projectz that needed to be donelast year, waiting for reassurancre from Washington.” Joe Lalli, presidentt and managing partner of the largest architectural firm in South said his firm is cranking out more proposalss these days. Projects that had been put on hold are now and new projects are going outfor bid, he Many of those projects are however, including projects in China and the Middles East.
Still, Lalli, whose clients include and , echoed others in sayingy the summer would be a key indicatod of whether the industry has reallyturned around. “Wes see indications, but it looks like everyonwe is waiting for the other person to make thefirst move,” he But, many firms are disappointec and puzzled that they haven’t seen bank lendinyg and broader capital markets for private projects open up. “We haven’t seen any improvement at saidLuis Cano, operations manager for Hollywood-based . “Our large clients are having more difficulthy getting financingthan ever. It seems like the bankzs got allthe [federal] dollars and kept it.
And developeras are very reluctant to start any large capital considering thelosses they’ve had in their the instability of the the new administration coming in and the uncertainty of what’s happening.” Gresham, whose clients include , and the , recentlg laid off more employees than it ever has in its 14-year history. PGAL’s Boyce shares Cano’s frustration. “Banks are not lending money yet; developers are not putting out RFPs for she said. “That has not For PGAL, whose cliente include the Department, Palm Beach County and , the latest challengd is the increasing levelof competition.
when the city of Delra y Beach had a they would get 12 to 14 Boyce said. “Now, they get 40. Instead of short-listingy three firms, they’ll interview 12 to 15 firms. Peoplse are hungry for work. Even if they don’t have the they apply.”