“On behalf of the millions of Americans who rely on the design, construction and real estate

industry, we ask for your support in enacting legislation that provides certainty to the

marketplace and gets our economy back to work.”

That was the opening sentence from a letter that was sent to President Obama and Congressional leaders on December 7 and signed by 45 design and construction industry associations. But it could have been sent to almost every American. (And, for that matter, sent by many Americans as well.)

At a time when unemployment in the design and construction industry is at 13.4 percent, it is no surprise that nearly one in ten American workers is out of a job. The industry accounts for 5.7 percent of the Gross Domestic Product (GDP), employing more than seven million Americans who design, construct and maintain the infrastructure on which our economy depends. When unemployment in this sector is high, the impact is felt in every community across the nation.

For when the design and construction industry slows, the economy worsens. It’s as simple as that.

You can argue, as some experts do, that the industry was artificially inflated by the real estate bubble, and that now the industry is only returning back to normal. However, when a sector determines the economy’s overall health as much as this sector does, that explanation just won’t wash. Most construction projects valued at less than $5 million are stalled due to lack of financing, and more broadly, 21 percent of all construction projects are stalled due to the lack of available financing, according to an analysis by the American Institute of Architects. Total construction spending will be flat to down for the remainder of 2011, and margins will continue to be squeezed as material costs continue to rise at more than five percent into 2012.

This lack of funding deters job growth in a sector that can put the economy back on track and is a

proven accelerator of economic growth. A recent study by Bloomberg Government reports that

for every one job in construction, there are 25 applicants. If the industry gets back to work, then

the national economy will grow. Every additional $1 billion invested in nonresidential design

and construction would add $3.4 billion to GDP, $1.1 billion to personal earnings, create or

sustain 28,500 full-time jobs, and an additional $2.35 billion in indirect benefits to the economy, according to the Associated General Contracts of America.

So, what can you do about this? Despite the inherent challenges in passing legislation

in a divided government, Congress and the Administration have the opportunity to improve the

economy simply through enacting legislation that traditionally has received strong bipartisan

support. And we ask for your support in asking your representatives to work to achieve the following goals:

Ask your Congressman or Congresswoman to pass and the President to sign surface transportation, aviation, water resources, and clean water and drinking water infrastructure authorization bills. Enactment of these authorizations will immediately provide programmatic and fiscal certainty that will help job creators in every state put people back to work. Short-term extensions of laws provide little or no certainty to public agencies or those who perform work for them. In fact, our members say that the failure to pass routine bills undermines business confidence. Our members understand that difficult choices need to be made in order to reduce spending and lower the deficit. However, delaying these choices damages our economy by putting vital building and infrastructure projects on hold indefinitely.

Second, any effort to reinvigorate the design and construction markets must successfully jumpstart new privately-funded construction. The strength of the private sector market is the single largest determining factor in the health of the construction industry. Unfortunately, private sector demand continues to decline at alarming rates. Of course, the private sector will not begin building again until employment expands, retail demand grows and manufacturing increases. That is why the best way to boost private demand for construction is to put in place pro-growth policies that will boost economic expansion.

Our members are ready and willing to get back to work designing and building the infrastructure that will keep America competitive in the 21st Century. They want Congress and the

Administration to perform the fundamental business of governing that will provide the stability

that is needed to get this sector moving and take millions of Americans off the unemployment rolls. Reviving demand for construction, particularly private sector construction activity, is essential to sustaining broader economic growth.

When so many of our fellow Americans are out of work, we urge you to urge your Congressional representative to take action on these critical measures that

will help our economy fully recover. For when architects work, the nation builds.

American Institute of Architects.