Credit Still Feeling the Squeeze

The availability of construction project financing remains a major issue for many architecture firms, with 57 percent of survey respondents rating the issue as very or extremely serious. An additional 30 percent indicated that it is a somewhat serious issue, according to AIA's Jennifer Riskus.

In addition, nearly half of respondents (45 percent) think that the availability of credit has continued to grow more restrictive over the past year. Just 16 percent saw an easement in credit availability.

Larger firms, with annual billings of $5 million or more, were least likely to report that the availability of credit has gotten more restrictive. However, they were most likely to report that they have projects that are stalled due to problems obtaining credit. In fact, nearly two-thirds of panelists (63 percent) indicated that they have projects that are stalled primarily due to difficulties obtaining financing.

These firms have an average of three stalled projects at present, with the construction value of these projects averaging $48.8 million per firm. Firms located in the Midwest reported the highest number of stalled projects, as well as the highest estimated value of these stalled projects.

- Courtesy of AIA