Economy Proofing the AEC Industry
Every domain has a reason for why it exists. Some are essential needs, like agriculture and education, while others are just means of enhancement, so to speak. The AEC industry, however, is one of the few exceptions, serving its purpose as a hybrid industry. That shelter is one of man’s most basic needs is a universal fact. However, the difference between a simple structure and an elaborate personification of great design and meticulous execution is more often than not, just the amount of investment one is willing to put in. Taking the case of architects, they are generally hired when there is need for expansion. In a crunch situation, the client and a team of workmen can very easily build a structure that serves the purpose of being a shelter, because quite frankly, when you don’t have the money, you need the workers, not great ideas.
Quite obviously, architects, engineers and construction professionals are the first to be affected by a period of recession. The reasons for this phenomenon are many:
• Banks, the ones who fund a majority of the big projects, are struggling
• Buyers of the property defer payments
• Private investors or developers don’t wish to part with whatever equity they still have.
Not only does this have an impact on the individuals from the AEC industry, but also on the overall development. Hence, the need for economy proofing the AEC industry is of utmost importance.
More on this in the next post…