Architects, contractors feel the weight of the slowdown - Philadelphia Business Journal:

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Contractors turn to architectural firms to gauge how much work they have to look forwarx to and this year that pipeliner of work isextremely light. “Workload for architectd is really the canary in the coal mine for theconstructiob industry,” said Walter P. Palmer III, president and CEO of the Generall Building Contractors Associationin Philadelphia. “Some architecturalp firms are down to three days a laid off the majority of their staff and severap architectural institutionsgraduating five-year architects that have nowher e to go to get a job.
That presents a ripplingf effect that comes across the construction Our entire board of directors tell me 2010 is going to be much worssethan 2009.” A convergencer of developers delaying projects or halting and lenders still not fundingf developments has put a squeeze on architect s and contractors. The construction industry has alreadhy been hit with a 12 percent decline in employment inthe five-county region between 2007 and the first part of this according to the Bureau of Labor Statistics. Man hours are off by abouy 25 percent fromlast year’s high, Palmer said.
Architects were extremel y busy between 2003 and 2007 with last year considered a according toJohn Claypool, executive director at the Philadelphia chapter of the American Institute of Firms had a fairly long line of businesds racked up for the future, Claypool But no more. Some architectural firms have alread beenearly casualties. SPG3, which was involvexd in retailand entertainment, has slashed its staff and launched a majo r restructuring. Ted Agoos, co-founder of , saw the firs t six months of last year asthe firm’se best, but this year is different. Doinh a mix of projects and not focusinbg on one areahas helped.
“Everyone is but it’s the big project that give stability,” Agoos The firm has taken on smaller, shortetr projects to sustain the staff. It also cut down the work “The challenge we face as an industry is everyoner is burning off backlog as fast as they canreplenisu it,” said Terry Steelman at Ballinger, a Philadelphiw architectural firm. “That is all going to trickle down to theconstructiomn industry. We think 2009 has clearly been a challenging year and 2010 is goingb to be a very challenging year unlessa things start to happen and stary tohappen quickly.” Contractors find they need to quicklyy adjust to survive.
“Our theme for this year is to analyze and adaptto achieve,” Palmer said. Already contractors are engagintg in a bidding frenzy over any project thatcomes up. Contractorw are undercutting bids just to win work and in other major constructing companies are biddinbg on minuscule projects that were once the territory ofsmall “Where there used to be two or threer bidders on projects, now there are 20 and Palmer said. has “rightsized,” cutting 20 percent of its office andfielfd staff, said Steve Pouppirt, president. Clemensa hasn’t gone after work for no profit just to keep Pouppirt said.
Emily Bittenbender, managing partner of , formed two new divisionws as a way to ginup business. “We have to adapy to this environment,” Bittenbender said. “Peoplew are so optimistic that it’s goinvg to turn around soon, but my concern is we’rd looking out a coupled years.” Bittenbender started a sustainable program-management businessa to assist government agencies seeking stimulusa funds for projects but which lack the staffc to support and oversee The other new business is a carpentruy unit that will go after federal contracts as a Architects are also venturing into new Ballinger ramped up writing grant applications for institutions seekin stimulus fundstargeting research.
These grants require a schemati design of what they intend to do withthe