'Cautious optimism' in Philadelphia's construction and design industries

Editor's Note: This is the tenth in a series of contributed articles authored by members of The Forum of Executive Women.

As dean of a college, I am often asked about the employment prospect for graduates. I am proud that Philadelphia University College of Architecture and the Built Environment programs maintain a job placement rate of 95 percent. By incorporating sustainability, innovation and interdisciplinary collaboration into a student-centered education, PhilaU offers curricula that meet the demands of a changing marketplace. In conjunction with an improving regional market, Philadelphia offers opportunities for students seeking employment.

Philadelphia’s design and construction community maintains cautious optimism about an improving economy. The Dodge Midyear Construction Outlook reports national 2014 construction starts are up 8 percent, with commercial starts up 15 percent. Likewise, AIA’s Architecture Billing Index showed increases in April’s numbers for project inquiries and design contracts.

While the northeast region has not yet indicated recovery, Philadelphia’s significant new construction implies our city may behave differently. Major projects poised to benefit the local economy include the Church of Jesus Christ of Latter-day Saints Temple, Museum of the American Revolution, Comcast Tower II, and Cira South Complex.

According to Philadelphia Deputy Mayor for Economic Development and Director of Commerce Alan Greenberger, “Philadelphia is experiencing a construction boom the likes we haven’t seen for decades.” He cites more than $7.5 billion in construction activity between 2011 and 2017, with projects concentrated in Center City, University City, and the Navy Yard.

Local architects and engineers maintain guarded optimism, describing projects proceeding slower than in the past, with clients authorizing a phase at a time. Market sectors that fared better during the recession, including higher education and healthcare, attract competition from new firms. Design-build projects are more common.

Sustainability-minded firms fare better than others. According to McGraw Hill Construction’s Green Home Builders and Remodelers Study, the recession hit builders with sustainable construction experience with less severity. Local professionals explain that green design must now prove payback, with high-performance buildings in demand.

As momentum builds, project execution has shifted. In a recent AIA survey, more than one in six firms selected technology, including communication tools and Building Information Modeling (BIM), as a key to productivity. Local professionals see BIM leading to greater efficiency, integration, and coordination.

“Clients tend to expect architects and contractors to use BIM on projects $5M and above …Technology enables firms to do more with less staff,” said Darrell Kratzer, AIA, LEED AP BD+C, Principal with Buell Kratzer Powell.

An uptick in Philadelphia’s market presents opportunities for job seekers. According to U.S. Labor Department statistics cited by the AIA, 5,000-6,000 positions were added nationally at architecture firms over the past 18 months, with 18,600 total anticipated positions through 2022.

“We have been fortunate to see our business has been picking up, and as a result, we have significantly increased the number of employees during the past two years,” said Cheryl Smith, AIA, Associate with Cope Linder Architects.

Although architects such as Anton Germishuizen, AIA, Vice President with Stantec Architecture, Inc., say their firms are doing more, in less time, with fewer people, those people must be well-rounded.

They must offer an understanding of creative and sustainable design, strong interpersonal and technical skills, and more importantly than ever before, they must be capable of articulating their value.

“The value of architecture is simply that we are shaped by our surroundings, both functionally and spiritually,” says Greenberger. “A high quality urban environment makes for an attractive city that in turn makes for enhanced investment, commitment, and well-being.”

Philadelphia has great potential to not only reap the benefits of construction gains, but do so in a manner that transforms the city for the better.

Barbara Klinkhammer is Executive Dean of the College of Architecture and the Built Environment at Philadelphia University. Amanda Gibney Weko, owner of AGW Communications, contributed to this column.

Source: Philadelphia Business Journal