Economic Recovery: Is That Light at the End of the Tunnel?
A consultant says to watch for surges in inquiries May 18–June 19, later in 2009.

For the first time in 18 months, ASLA’s Business Quarterly survey shows the number of firms reporting average or above inquiries increased from one quarter to the next. For the second month in a row, the American Institute of Architects’ Architectural Billings Index has shown a positive gain. While this information should be viewed cautiously, there may be some glimmer of light, as determined by a slight increase in project inquiries.

Over the next several months, landscape architects, architects, engineers, and contractors will begin to see an increase in proposal activity. Why? Well, there are a few reasons. Let’s start with the American Recovery and Reinvestment Act. In accordance with the law, agencies, cities, counties, and municipalities had 90 to 120 days in which to obligate funding to “shovel-ready” projects. That means that between May 18 and June 19, recipients of the funding are in a full-court press to secure design professionals to take advantage of those funds that will be pushed out in the fiscal year 2009, ending September 30.

But that doesn’t mean that’s the last uptick of inquiries we are likely to see. Passage of the Federal Omnibus Budget that funded the second half of the fiscal year (March 6–September 30, 2009) as well as the 2010 Federal Budget (October 1, 2009, through September 30, 2010) allocates funding for agency capital improvements and supplements a variety of state agencies/programs. As such, it is expected that the built environment will likely see “surges” in inquiries from June through September—just slightly ahead of the funding allocations.

Is that light at the end of the tunnel? Right now, it’s still too early to tell. However, what is illuminated is the need for landscape architecture firms to reassess their value proposition relative to their clients’ needs and demands, in recognition of increased competition and the need to secure as many wins as possible given the opportunity.

Karen Compton, CPSM, is principal of A3K Consulting, a California-based business and strategic planning firm specializing in the built environment. She will speak at the 2009 ASLA Annual Meeting and EXPO, September 18–21 in Chicago on Economic Stimulus: Opportunities for Landscape Architects in a New Economy.