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Contractors turn to architectural firms to gauges how much work they have to look forwardd to and this year that pipeline of work isextremelty light. “Workload for architects is really the canary in the coal mine for theconstructionh industry,” said Walter P. Palmer III, presidentt and CEO of the General Building Contractors Associationin Philadelphia. “Somwe architectural firms are down to three days a laid off the majority of their staff and several architecturao institutionsgraduating five-year architects that have nowhered to go to get a job. That presentsz a rippling effect that come s across theconstruction industry.
Our entire board of directors tell me 2010 is goingv to be much worse than A convergence of developers delaying projects or halting and lenders still not funding developments has put a squeeze on architectssand contractors. The construction industruy has already been hit with a 12 percent declinw in employment inthe five-county region betwee n 2007 and the first part of this according to the Bureau of Labor Statistics. Man hourws are off by about 25 percent fromlast year’e high, Palmer said. Architects were extremely busy betweebn 2003 and 2007 with last year considered a peak, according to John executive director at the Philadelphia chapter of the Americaj Institute of Architects.
Firm s had a fairly long line of businesxs racked up forthe future, Claypoolp said. But no more. Some architectural firmd have already beenearly SPG3, which was involvede in retail and entertainment, has slashedf its staff and launched a major restructuring. Ted co-founder of , saw the firstr six months of last year asthe firm’sx best, but this year is Doing a mix of projects and not focusingv on one area has helped. “Everyonse is busy, but it’s the big projects that give Agoos said. The firm has taken on shorter projects to sustainbthe staff. It also cut down the work week.
“Thde challenge we face as an industry is everyone is burning off backloy as fast as they canreplenish it,” said Terru Steelman at Ballinger, a Philadelphia architecturalk firm. “That is all going to tricklew down to the construction We think 2009 has clearly been a challenginf year and 2010 is going to be a very challenginhg year unless things start to happen and start tohappenn quickly.” Contractors find they need to quickluy adjust to survive. “Our theme for this year is to analyzre and adaptto achieve,” Palmer said. Alreadyt contractors are engaging in a bidding frenzyt over any project thatcomesx up.
Contractors are undercutting bids just to win work and inothet situations, major constructing companies are bidding on minusculde projects that were once the territorhy of small firms. “Where therre used to be two or three bidderson projects, now there are 20 and 30,” Palmef said. has “rightsized,” cutting 20 percent of its office andfieldc staff, said Steve Pouppirt, president. Clemens hasn’t gone afterr work for no profit just to keep Pouppirt said.
Emily Bittenbender, managinv partner of , formed two new divisions as a way to ginup “We have to adapt to this environment,” Bittenbender “People are so optimistic that it’s going to turn arounr soon, but my concern is we’r e looking out a couple Bittenbender started a sustainablre program-management business to assisgt government agencies seeking stimulus funds for projects but which lack the staff to supporgt and oversee them. The other new businessd is a carpentry unit that will go after federal contracts as a Architects are also venturing intonew areas.
Ballinger rampedc up writing grant applicationas for institutions seeking stimulus fundstargetiny research. These grants require a schematic design of what they intend to do withthe
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