The Architecture/Design Industry is 65% unemployed as of mid-April 2009.(This is over six times the overall unemployment rate of the entire state.)
Unemployment in the construction industry will continue to increase. Without “pencil ready” projects, our contracting community will feel an extended recession for an additional 12-18 months due to a lack of designed projects.
“Shovel ready” projects will not solve the problem. They are once and done and do little to generate lasting jobs throughout the industry that fill the project pipeline and keep Nevadans working into the future.
The Architecture/Engineering/Design and Construction Industry accounts for over 14% of the voting population of Nevada.
Nevada’s aging building stock needs to be updated to be more efficient. NOW is the best time to start new and renovation or retrofitting projects. Construction costs are at an 8 to 10 year low -- Nevadans need the work and the cities/state needs the infrastructure.
When Architects work, the whole industry works. The design and planning phase of projects is where jobs are generated for contractors, engineers, consultants, interior designers , landscape architects and others in the industry, who can then hire the sub-contractors, construction workers, suppliers, etc. For every $100M of capital funds invested, we create jobs for 10,000 Nevadans.
PENCIL READY – WHAT DOES IT MEAN?
Any project that needs to be designed and built. This could be a project that is in the needs assessment stage, programming stage or one that hasn’t been started at all due to lack of funding.
This could also be a project that needs modernization, renovation, retrofitting or remodeling to bring it up to modern standards, ie, schools, governmental office buildings, maintenance facilities, police stations, etc.
Rather than limiting our infrastructure stimulus funding to “shovel ready”, we need to start with “Pencil Ready” design projects that will expand into the future and generate jobs.
WHERE DOES THE FUNDING COME FROM?
Funding can be put in place through the State CIP to see that design/build, CMAR, or full-fledged design/bid/build projects are funded. There are other avenues for funding as well. As an example, the USDA has set aside funding to develop projects in rural towns throughout the U.S. Also, funding mass transit projects and renewable energy projects will aid the design sector.
Fast-track, or design/build type, projects also fall within the stimulus funding requirements for the “shovel ready” projects – BUT they will generate more jobs for a longer period of time.
The sooner the design and building industries get back to work,
the sooner the Nevada economy will recover.
This cannot be done with “shovel ready” projects alone.
We must think on a larger scale and create “Pencil Ready” projects that will benefit all Nevadans.
