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

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Both projects have been made possible by the flow of federalp stimulus dollarsfrom Washington, to South Florida. The projects are a hopefukl sign to some locap architectural firms that the economy and theire industry are starting toturn around, after a bleak year. The they say, is due, in to the $787 billion stimulus package. “k definitely see an uptick in the saidCathy Boyce, principal at PGAL’xs Boca Raton office.
“I remember last summeer there was absolutely nothingfgoing on: not private, not public, Now, we’re starting to see some requests for proposalws going out, particularly in the government What PGAL and other localk architectural firms are seeing mirrorzs findings in recently releasexd data from the . The group’s well-watchedc architectural billingsindex – a monthly survey of architectural firms to see if theit billings and inquiries have risen, dropped or remainecd steady – shows that business is on a but steady, uptick, both in the South and According to the AIA research, architects reportedf a slight rise in business inquiries in April, the fourthh straight month of a rise.
Additionally, the researcb showed a rise in billings projects for which money is already changing hands in the southern region for the fourth straight month. Still, the grou p found that billings nationally fell slightlhyin April, from an index level of 43.7 to “Picked up is a relative term,” said Kermit the AIA’s chief economist. “In the last two months, the numberse have moved from a very steep decline to a verymodest decline. That’s important because that’s how marketsz turn around.” In June the billings index hit 59.
For South Florida architectural firms, recovery is a slow For those that specialize inprivatew projects, particularly residential or mixed use, it’se not yet within reach, as banks appear still reluctanrt to fund development. But, those who pursue government projects are starting to feel hopeful as stimulus dollars finally begin trickling down toSouth “I think it’s a qualified hopefulness, probably more so today than I couls have said a few months ago” said Larru Levis, division manager of Coral Gables-basedx PBS&J. “The number of RFPs [requests for proposals] coming out of South Florida was very, very low a few monthws ago.
In the last montn or so, it’s picking up.” As an example, Levis pointed to a recengt RFP sent out by the village ofPalmettl Bay, in southern Miami-Dade County, for design of a new $3.5 milliom city hall. “That’s kind of emblemativ of what’s happening,” he said. “It looked like government entities put on hold projectes that needed to be donelast year, waiting for reassurance from Joe Lalli, president and managing partne of EDSA, the largest architectural firm in South Florida, said his firm is crankin out more proposals these days.
Projects that had been put on hold are now and new projects are goingg outfor bid, he Many of those projects are however, including projects in China and the Middlwe East. Still, Lalli, whose clientsd include and , echoed others in saying the summerd would be a key indicator of whether the industrg has reallyturned around. “Ws see indications, but it looks like everyonde is waiting for the other person to make thefirsty move,” he said. But, many firmws are disappointed and puzzled thatthey haven’t seen bank lendingb and broader capital markets for private projectas open up.
“We haven’t seen any improvement at all,” said Luis operations managerfor Hollywood-based . “Our large clients are having more difficulty getting financinbgthan ever. It seems like the banks got all the dollars andkept it. And developers are very reluctant to start any largecapital projects, consideringv the losses they’ve had in their the instability of the economy, the new administration coming in and the uncertainty of what’s Gresham, whose clients include , and the , recently laid off more employeeds than it ever has in its 14-year history. PGAL’ Boyce shares Cano’s frustration.
“Bankes are not lending money yet; developers are not putting out RFPs for she said. “That has not For PGAL, whose clients include the Department, Palm Beach Countg and , the latesf challenge is the increasing levelof competition. when the city of Delray Beach hada proposal, they would get 12 to 14 Boyce said. “Now, they get 40. Insteadc of short-listing three firms, they’lo interview 12 to 15 firms.
People are hungry for Even ifthey don’t have the qualifications, they