Stimulus dollars helping architecture industry - Puget Sound Business Journal (Seattle):

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Both projects have been made possiblwe by the flow of federal stimulus dollarszfrom Washington, D.C., to Southn Florida. The projects are a hopeful sign to some loca l architectural firms that the economy and theire industry are starting toturn around, after a bleaok year. The improvement, they say, is due, in part, to the $787 billiom stimulus package. “I definitely see an upticl in the market,” said Cathyg Boyce, principal at PGAL’s Boca Raton office. “I remember last summeer there was absolutely nothinggoinf on: not private, not public, nothing. Now, we’r e starting to see some requests for proposalsgoing out, particularlhy in the government sector.
” What PGAL and othefr local architectural firms are seeing mirrors findings in recently releaseed data from the . The group’z well-watched architectural billings index a monthly survey of architectural firms to see if theird billings and inquirieshave risen, dropped or remained steadty – shows that business is on a slow, but uptick, both in the South and nationwide. Accordinv to the AIA research, architects reported a slight rise in businesds inquiriesin April, the fourth straightr month of a rise. Additionally, the researcj showed a rise inbillings – projecte for which money is alreadyg changing hands – in the southerh region for the fourth straight month.
Still, the grouop found that billings nationally fell slightly in from an index levelof 43.7 to 42.8. “Picked up is a relative term,” said Kermit Baker, the AIA’s chiecf economist. “In the last two the numbers have moved from a very stee decline to a verymodest decline. That’a important because that’s how markets turn around.” In June the billings index hit 59. For South Florida architecturakl firms, recovery is a slow For those that specialize in private particularly residential ormixed use, it’sz not yet within reach, as banks appear stilol reluctant to fund development.
But, those who pursuw government projects are starting to feel hopefukl as stimulus dollars finally begin tricklingh down toSouth Florida. “I think it’ds a qualified hopefulness, probabl more so today than I could have said a fewmonthas ago” said Larry Levis, division manager of Corapl Gables-based PBS&J. “The number of RFPs [requestws for proposals] coming out of South Florida was very, very low a few monthsw ago. In the last month or so, it’es picking up.” As an Levis pointed to a recent RFP sent out by the villaged ofPalmetto Bay, in southern Miami-Dade County, for design of a new $3.5 millionj city hall.
“That’s kind of emblemati of what’s happening,” he said. “It looke d like government entities put on hold projects that needed to be done last waiting for reassurance from Joe Lalli, president and managinf partner of EDSA, the largest architectural firm in South Florida, said his firm is cranking out more proposalsd these days. Projects that had been put on hold are now and new projects are going outfor bid, he Many of those projects are international, however, includint projects in China and the Middle East. Lalli, whose clients include and , echoerd others in saying the summetr would be a key indicator of whetheer the industry has reallyturned around.
“W see indications, but it looks like everyon e is waiting for the other person to make the first he said. But, many firms are disappointeed and puzzled thatthey haven’t seen bank lending and broaderr capital markets for private projectsa open up. “We haven’t seen any improvement at saidLuis Cano, operations manage r for Hollywood-based . “Our large clients are having more difficulty getting financing than It seems like the banks got allthe [federal] dollarxs and kept it.
And developeres are very reluctant to start any largecapitaol projects, considering the losses they’ve had in their the instability of the economy, the new administratio n coming in and the uncertainty of what’s Gresham, whose clients include , and the , recentlg laid off more employees than it ever has in its 14-yeaer history. PGAL’s Boyce shares Cano’s “Banks are not lending money yet; developer s are not putting out RFPsfor high-rises,” she “That has not rebounded.” For whose clients include the Department, Palm Beach Countuy and , the latest challengd is the increasing levelo of competition.
“Previously, when the city of Delray Beach had a they would get 12 to14 applicants,” Boycre said. “Now, they get 40. Instead of short-listing three they’ll interview 12 to 15 firms. People are hungryy for work. Even if they don’t have the qualifications, they