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Slump batters architects, too

July 28th, 2009, 6:30 pm · 9 Comments · posted by Jon Lansner

Click to enlarge

Click to enlarge

The Architecture Billings Index is out for June, a barometer of how the folks who design construction projects are doing. News is, well ….

  • Overall index is back at the lowest (37.7) since February’s low after three months of holding steady.,
  • It’s 18 months since the index was above the key 50 level. This math turns a survey of architect execs into a score: Above 50 indicate growth; below, a decline.)
  • Western conditions rated a 39.9 — highest since September (See accompanying graph!) but still well under the 50 “growth” mark.
  • How will the second half look? When asked how it’ll compare to the first half, 46% of U.S. execs polled expect lower billings while 30% expect increased business.
  • 49% of Western firms expect second-half declines.

One view, from Charles Pruitt, CFO of the Irvine “green” design firm LPA Inc. …

“Although we have seen a continued interest in sustainable (green) projects, the state of California’s budget is being felt at many levels and issues have permeated down in a variety of ways. Given the (low) cost of construction at present, it may be the best opportunity in a decade for organizations with a long-term perspective to invest in their facilities, even if that entails retrofits to make them more suitable and sustainable.”

Other trouble spots …

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 9 Comments

  • NationalBubble.com says:
    July 28, 2009 at 6 pm

    well, I feel bad for architects, at least they build something, they create something, unlike realtors who only take a commission and produce nothing of value.

    • Mulliganville says:
      July 28, 2009 at 10 pm

      Your shtick is absolutely tired.

      Architects need salespeople.

      Builders need salespeople.

      IBM needs salespeople.

      Google needs salespeople.

      Exxon needs salespeople.

      Oh, and your friendly neighbor selling their home needs a salesperson as well.

      Lots of choices too…they can do it themselves, just pay to have it listed in the MLS, or perhaps Redfin is in order? Or they can join the majority…hire a full service brokerage.

      • ReloMan says:
        July 28, 2009 at 10 pm

        Even bloggers need to sell/promote. I hope NatBub pays a commiss to himself.

      • NationalBubble.com says:
        July 29, 2009 at 7 am

        I understand why companies need and use salespeople but me as a consumer DO NOT need salespeople. If the product is so good, why do I need somebody to convince me to buy it? I don’t.

        • Mulliganville says:
          July 29, 2009 at 4 pm

          Who does “convincing?” It is about marketing and execution. Just FSBO it when you are ready big guy. You can handle it.

    • Mulliganville says:
      July 28, 2009 at 10 pm

      NationalBubble.com says:
      July 28, 2009 at 6 pm

      well, I feel bad for architects, at least they build something, they create something, unlike realtors who only take a commission and produce nothing of value.

      Interesting how it comes full circle…you feel for the architects, who are hired by homeowners or builders…who build a home for a family that must be sold. And not everyone can sell. So if the salespeople are failing at their job, for a myriad of reasons, the architect, plumber, electrician, HVAC company, roofer, landscaper, etc. all stop contributing to the economy. Your little county here is much better off with those cats at work.

    • Olivas Salone says:
      July 29, 2009 at 5 am

      all you produce is gas

  • Denise Thornton says:
    July 29, 2009 at 4 am

    Now more than ever, is the time for the housing industry to start to redefine itself. This slow down in business as usual is a real opportunity to shift away from current practices.
    We are building a new home and have chosen an architect who will design sustainably without breaking the bank. Check it out at http://digginginthedriftless.wordpress.com/2009/07/28/a-green-home-should-not-cost-so-much-green/.

  • finhead says:
    July 29, 2009 at 2 pm

    who loses the most in lack of construction is the cities, they get the biggest bite by far, even more than the developer.. But they are the ones crying the blues the loudest when they have to cut back a few people, on the other hand I know architects that have lost everything in this latest slump.