Navigating the Economy
How Architects Can Take Advantage of the Economic Stimulus Package
Recognize and take advantage of opportunities in the pipeline, a podcast

by Russell Boniface
Associate Editor

How do you . . . develop a business plan to leverage stimulus money into economic development opportunities.

Summary: In this podcast, “The Stimulus Package and Your Business Plan,” Karen Compton speaks to AIArchitect Contributing Editor Michael J. Crosbie, AIA. She opens by reflecting on the session she gave at the AIA 2009 National Convention. She describes the audience’s mood regarding the economy as solution-driven and action-oriented, as opposed to panic, confusion, and “doom and gloom.”

Compton says that the American and Recovery Reinvestment Act (the economic stimulus signed into law this past February) will push money into the market beginning in June and July, causing increased levels of proposal inquiries as a result of cities, counties, municipalities, and institutions receiving federal funding. This fall, she expects to see another slight uptick in inquiries, consistent with the second push of money, and slight upticks with the passage of the Omnibus Bill, which covers the balance of the federal fiscal year, plus additional inquiries as a result of the 2010 federal budget, due October 1. She believes “there is positive light in all of this; the economic stimulus—the American and Recovery Reinvestment Act—was a shot.”

Compton calls the American and Recovery Reinvestment Act (ARRA) a job creation bill that targets the construction industry. This doesn’t mean there aren’t opportunities for architecture practices, she notes. But firms have to be innovative and reconsider their base service provision in light of client demands. She says ARRA will boost confidence in the broader economy, but for the architecture and engineering industry it may continue to be a slightly bumpy ride in terms of getting revenue in the door, thus slightly lagging behind construction. The U.S. can look to global case studies for stimulus ideas, e.g., public-private partnerships that have successfully been implemented in Europe and Canada.

Compton believes there is stimulus funding available for all types of architecture firms, with a push to get projects out the door quickly, focusing on shovel-ready projects. Smaller and midsize firms can revisit what she terms “shovel almost-ready-to-go projects” and move forward with those in October when more funds are available. There are also new opportunities created in the stimulus package allocating funds for energy and transportation grants. Banks are lending, she points out, albeit in smaller amounts towards projects with mitigated risk for decent return on investment. There is a slight freeze in credit, impacting the selling of bonds, causing a slowdown on the institutional sector. But there are small signs of movement going forward. Human resource issues are part of the business development approach, she adds, advising that to keep talented people in the profession, firms should revisit their business plan to assess who they hope to attract—i.e., skill sets—and what attracts them. She advises that firms re-examine benefit packages and that “life-work balance” be considered, such as offering employees flexibility, and collaboration based on the advent of technology. Social networking is a good way to stay connected to talented people, she concludes.