MarkDaMan
01-08-2007, 04:28 PM
Designers busy could mean builders busy
by Alison Ryan
01/08/2007
Architecture billings at the end of 2006 indicate sustained construction activity for 2007. Portland-area architects say the year ahead looks busy, too, which could mean solid growth for future construction activity as well.
As 2007 begins, growth in design billings is slowing, said Kermit Baker, the American Institute of Architects’ chief economist, but the overall national outlook is positive.
“It’s going to be a good – not a great – year for architecture activity in 2007,” he said.
Design billings have long been used as an economic indicator of construction activity. High demand in late 2006 for nonresidential design services is expected to mean continued construction activity in 2007, Baker said.
Nationwide, construction spending is expected to fall by 1 percent this year, with the decline in single-family home building – pegged at 15 percent in reports from McGraw Hill Construction – weighing heavily in the fall.
But a jump in the AIA Billings Index in November is expected to mean 2007 growth for the nonresidential construction sector. The rating of 57.5 was the year’s second-highest, and the commercial/industrial sector’s 62.9 mark was the best in a decade, according to AIA reports.
That commercial/industrial sector is one from which LRS Architects benefited in 2006, with projects including the mixed-use office and retail project that will house the Pearl District Safeway and Fanno Creek Place, a two-building office park in Tigard. Principal Trish Nixon said high activity is expected for 2007 as well.
“We do a lot of commercial office work, and that stuff is picking up,” Nixon said. “I anticipate that we’re going to remain busy all year.”
The commercial/industrial sector should see growth of between 6 percent and 8 percent, Baker said.
Institutional billings, which make up about half the industry, are expected to see between 4 percent and 5 percent growth.
Oregon voters passed about $1 billion in school bond projects in November, which means work ahead for the education design-focused Dull Olson Weekes Architects. The firm got about $250 million of the work passed, said Marie Vinless, director of business development.
“There’s plenty of work in the K-12 market,” she said. “We’re going to be very busy in 2007. And 2008, depending on different schedules.”
Corporate mixed-use and retail are the primary markets for MulvannyG2 Architecture, said principal Brian Fleener, and the firm is expecting financial growth of 18 percent in the next year.
“We’re projecting an increase in work,” he said, “And that goes back to that financial growth.”
The single-family residential market is expected to be weak, Baker said, but the sector makes up less than 25 percent of architecture billings.
Many firms have expanded their focus to include multifamily residential work, and Baker calls the 2007 outlook for those projects “reasonably good.”
High activity translates to hiring
Attracting and retaining staff, according to an AIA national survey, is one of firms’ top concerns for the coming year. A busy year for local firms means availability of qualified candidates will continue to be an issue in Portland.
“It’s been a tight market to find employees, so we started looking in anticipation of these bonds passing,” said Vinless of Dull Olson Weekes, which has hired five people in response to the expected greater workload.
Historically, MulvannyG2’s Fleener said, the first part of the year has been better for recruiting. MulvannyG2 plans on adding 15 people in the coming year and has been recruiting nationally for its Portland office.
“We’re hopeful that January through March will help us recruit the staff that we need,” he said.
While MulvannyG2’s Portland office is projecting a dip in the third or fourth quarter of 2008, Fleener said, establishing markets now will mean future need for staff that’s being hired now.
“We feel pretty confident that it’s not an over-hire situation,” he said, “that we can maintain that workload into 2012.”
http://www.djc-or.com/viewStory.cfm?recid=28675&userID=1
by Alison Ryan
01/08/2007
Architecture billings at the end of 2006 indicate sustained construction activity for 2007. Portland-area architects say the year ahead looks busy, too, which could mean solid growth for future construction activity as well.
As 2007 begins, growth in design billings is slowing, said Kermit Baker, the American Institute of Architects’ chief economist, but the overall national outlook is positive.
“It’s going to be a good – not a great – year for architecture activity in 2007,” he said.
Design billings have long been used as an economic indicator of construction activity. High demand in late 2006 for nonresidential design services is expected to mean continued construction activity in 2007, Baker said.
Nationwide, construction spending is expected to fall by 1 percent this year, with the decline in single-family home building – pegged at 15 percent in reports from McGraw Hill Construction – weighing heavily in the fall.
But a jump in the AIA Billings Index in November is expected to mean 2007 growth for the nonresidential construction sector. The rating of 57.5 was the year’s second-highest, and the commercial/industrial sector’s 62.9 mark was the best in a decade, according to AIA reports.
That commercial/industrial sector is one from which LRS Architects benefited in 2006, with projects including the mixed-use office and retail project that will house the Pearl District Safeway and Fanno Creek Place, a two-building office park in Tigard. Principal Trish Nixon said high activity is expected for 2007 as well.
“We do a lot of commercial office work, and that stuff is picking up,” Nixon said. “I anticipate that we’re going to remain busy all year.”
The commercial/industrial sector should see growth of between 6 percent and 8 percent, Baker said.
Institutional billings, which make up about half the industry, are expected to see between 4 percent and 5 percent growth.
Oregon voters passed about $1 billion in school bond projects in November, which means work ahead for the education design-focused Dull Olson Weekes Architects. The firm got about $250 million of the work passed, said Marie Vinless, director of business development.
“There’s plenty of work in the K-12 market,” she said. “We’re going to be very busy in 2007. And 2008, depending on different schedules.”
Corporate mixed-use and retail are the primary markets for MulvannyG2 Architecture, said principal Brian Fleener, and the firm is expecting financial growth of 18 percent in the next year.
“We’re projecting an increase in work,” he said, “And that goes back to that financial growth.”
The single-family residential market is expected to be weak, Baker said, but the sector makes up less than 25 percent of architecture billings.
Many firms have expanded their focus to include multifamily residential work, and Baker calls the 2007 outlook for those projects “reasonably good.”
High activity translates to hiring
Attracting and retaining staff, according to an AIA national survey, is one of firms’ top concerns for the coming year. A busy year for local firms means availability of qualified candidates will continue to be an issue in Portland.
“It’s been a tight market to find employees, so we started looking in anticipation of these bonds passing,” said Vinless of Dull Olson Weekes, which has hired five people in response to the expected greater workload.
Historically, MulvannyG2’s Fleener said, the first part of the year has been better for recruiting. MulvannyG2 plans on adding 15 people in the coming year and has been recruiting nationally for its Portland office.
“We’re hopeful that January through March will help us recruit the staff that we need,” he said.
While MulvannyG2’s Portland office is projecting a dip in the third or fourth quarter of 2008, Fleener said, establishing markets now will mean future need for staff that’s being hired now.
“We feel pretty confident that it’s not an over-hire situation,” he said, “that we can maintain that workload into 2012.”
http://www.djc-or.com/viewStory.cfm?recid=28675&userID=1
