Persistent Financing Crunch Continues to Plague Design, Construction Sector WASHINGTON, D.C. — The American Institute of Architects released a comprehensive report that concludes that the major obstacle holding back job creation in the United States is the persistent lack of construction financing, despite record low interest rates. “This report should lay to rest any doubt about what is a key source for holding back job creation in the United States," said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross […]

Construction spending increased by 0.2 percent between August and September but was down 1.3 percent compared to September 2010, the Associated General Contractors of America reported in an analysis of new Census Bureau data. Association officials noted that growing declines in public sector activity continue to offset modest increases in private sector demand for construction. “In less than a year's time, the public sector has gone from propping up the construction industry to holding,” said the association's chief economist, Ken Simonson. “Even as local and state budgets continue to contract, the federal government is winding the stimulus and base realignment […]

The amount contractors pay for a range of key construction materials held steady in September but climbed 8.1 percent from the year-earlier level, according to an analysis of producer price index figures released by the Associated General Contractors of America. Meanwhile, the price contractors charge for new nonresidential building construction edged up only 2 to 3 percent over 12 months, depending on building type. “Feeble demand for construction is forcing contractors to absorb the bulk of materials price hikes, instead of passing them along to owners,” said Ken Simonson, the association's chief economist. “This pattern has persisted for more than […]