經濟危機重創美國建築師 Architects Hit Hard by Financial Crisis

建築師事務所工作、實習,以及建築、營造工作所可能遇到的法律議題
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eaGer
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經濟危機重創美國建築師 Architects Hit Hard by Financial Crisis

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→ 至2008年8月份,建築訂單指數(Architecture Billings Index,簡稱 ABI)連續七個月呈現低於50分,低於50分表示訂單數量下滑

全球經濟在這兩月陷入了重大的的危機當中,事實上美國建築師早已感受到寒冬的來臨。

雖然現有建案依然在興建中,但已有跡象顯示新建案訂單正大幅縮減,2007年美國的新屋需求崩跌,不過包括辦公大樓、零售商場、旅館、學校、醫院或政府建築物等非住宅區的建築活動卻仍有活力,不過自2008年初起這個市場的建築熱潮也開始呈現降溫。整體性的建築市場轉趨疲弱,對美國經濟將是一大打擊。自1990年起,非住宅建築投資平均每年為美國經濟增加2500億美元。此外營建市場逆轉之下,也會在未來導致許多高薪員工失業。

在2008年3月份,美國 AIA 的建築訂單指數(Architecture Billings Index,簡稱 ABI)出現了 39.7 分,而這是過去十三年來最低紀錄,ABI 指數如果超過50分,就表示訂單在增加當中,反之,低於50分則是表示訂單衰減。

2008年年初迄今,ABI 都低於 50,事實上,過去三年當中僅有 2006年6月時,ABI 是低於50分,其他各月的統計皆高於50。

負責編纂該指數的美國建築師學會的經濟學家預見下跌情勢將會延長,如鋼鐵與銅等原物料成本膨脹,將導致部分建案擱置,原物料成本較一年前增加6至8%,大幅高於通貨膨脹。

對於 2009年的建築景氣更是不樂觀,根據 AIA 於2008年7月間的預測,2009年辦公空間的建設會下滑12%,而零售業空間及飯店則下滑10%,針對此一危機,AIA 設置了線上資源中心(online resource center)來幫助建築師們度過難關。

美國商務部10月17日公布9月房屋開工率連續第三個月減少,而較前月減少6.3%,換算成年率是817000戶,是1991年1月以來最低,同時減幅也超過原先預測的1.7%,顯示美國房市走冷的情況較專家所認為的還要嚴重。8月美國房屋開工率是減少6.2%,7月則是減少12.9%。

同時,跡象顯示房屋興建活動在第四季還將進一步走疲。根據商務部週五報告指出,未來房屋興建活動指標:建築許可9月減少8.3%,年率為786000戶,減幅遠超過專家原先預測的2%,建築許可8月是減少8.5%,7月更是大減17.7%。

專家指出,美國的房市泡沫規模之大前所未有,因此也可預先其破滅後的向下修正期也將漫長而痛苦。專家大都認為美國房屋建築活動還將繼續減少,房價也將繼續下跌。

然而,因為各行各業所需建築空間的不同,也影響到各種不同類型的建築師事務所執業內容,加上銀行放款的對象有所調整,對於經濟危機的到來,各家事務所都抱持著不大一樣的看法。
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出處
Architects Hit Hard by Financial Crisis
October 15, 2008
By C. J. Hughes

The plunging financial markets this month, followed by unprecedented responses from the federal government, have left many Americans bracing for a deep recession. In the architecture profession, however, the downturn has already arrived, according to a key measure of the market for architectural services.

As of August, the Architecture Billings Index (ABI), which the American Institute of Architects compiles in part from statistics provided by firms, had dipped below 50 for seven straight months, hitting 39.7 in March, the lowest score in the index’s 13-year history. Anything below 50 represents a billings decrease. In contrast, the score rose above 50 every month last year; in fact, prior to 2008, the score had dropped below 50 on only one occasion (June 2006) in the past three years.

Next year looks even more dismal, according to a July report from the AIA’s Consensus Construction Forecast Panel, which predicts retail and hotel building will fall 10 percent in 2009 while office construction plummets 12 percent. Anticipating the slowdown, the AIA recently established an online resource center to help architects weather these tough times.

The credit crunch has plagued every sector, particularly the commercial sector. While FDIC records don’t yet show measurable reductions in construction lending through June, anecdotal evidence suggests fewer loans are being issued. Major banks like Citi and Chase have gradually closed the taps, while other lenders have vanished altogether, like Lehman Brothers, which filed for bankruptcy protection in September.

Smaller regional banks, which tend to be less leveraged, still seem to be lending money for development projects, especially if the project is non-speculative. And the tumbling stock market might actually increase some capital reserves, according to bank officials. “Deposits are up, because of a flight to safety, and my bankers are looking for someplace to invest them,” says Joe DeHaven, president of the Indiana Bankers Association.

Still, fundamental problems pose long-term challenges for the commercial sector, says Kermit Baker, AIA chief economist. Shrinking payrolls means there’s less need for new office space. And in terms of retail, if people cut back on shopping, why build stores? Plus, material prices for concrete, copper, and asphalt continue to be steep, making construction an increasingly pricey proposition. “There is just less willingness to assume risk in this environment,” Baker says, noting that it doesn’t matter if a project is pre-leased, or guaranteed to be 100-percent occupied.

The housing sector also is limping, as depressed home values are turning off developers, and buyers are struggling to secure mortgages. In August, the ABI’s multi-family housing score was 40.8, well below 50, though up from its March low of 31.7. While the ABI doesn’t measure the single-family housing sector, its numbers also are down. According to the AIA’s second quarter Home Design Trends Survey, released in September, billings and inquiries for residential projects hit their lowest levels (38 and 37, respectively) in the survey’s three-and-a-half year history.

William Gati, AIA, principal of Architecture Studio, based in Queens, New York, says the demand for the $3 million luxury homes he was building four years ago is off by 60 percent. He expects his practice to persevere because he’s socked away money for rainy days. “But firms that are going into business now,” he says, “will be out of business soon.”

A bright spot in the ABI this year has been the institutional sector, which has produced 50 or better ratings for 44 straight months. But even that sector is now vulnerable.

Gerald Reifert, AIA, is a managing partner at Seattle-based Mahlum Architects, a 95-member firm that focuses almost exclusively on the institutional sector. His recent projects include University of Washington dorms and two new hospitals. While he remains optimistic, these types of projects typically require bond financing, and thus voter support, and “people are nervous right now about money,” he says. In fact, lack of financing for new schools in nearby Portland, Oregon, where he has an office, has forced him to relocate some of his Portland employees to Seattle.

For public projects, taxpayer money isn’t the only funding source jeopardized by the economic downturn. School endowments, which typically are invested in the stock market, can take a hit, says Rebekah Gladson, AIA, campus architect at the University of California, Irvine.

Gladson, who’s been practicing for three decades, sees a difference between this downturn and the early-1990s version. As she explains, materials, despite a drop in demand, continue to be expensive, largely because of overseas orders from Dubai, Shanghai, and Beijing. That market globalization does have upsides: Firms that diversify with international projects could fare better in a downturn. But as the U.S. financial crisis fans out to Europe, Asia, and beyond, many fear that even foreign markets might not provide a reliable refuge for architects.
::dodo::

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真擔憂世界各地未來的建築前景 :(
eaGer
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BD網站上有也一篇文章「Industry faces job cuts and closures(產業面臨裁員及倒閉)」在講英國建築業最近面臨到的慘況,文章結尾還請了大中小三種建築師事務所的主管以及發展商發表最近看到的及感想。

Industry faces job cuts and closures
17 October 2008
By BD news desk

Practices caught unawares by sudden impact of banking crisis

Britain's architecture profession could be facing the prospect of mass redundancies and even three or four-day weeks in the wake of the worldwide banking crisis.

A consultant who works with some of London's leading architects, but who did not wish to be named, told BD that 15 practices in the last fortnight had told him they were anticipating making between a third to a half of their staff redundant or alternatively reducing the working week by up to two days.

Atkins design director Martin Pease also predicted that one in five practices would go bust in the coming months.

The revelation emerged as it was announced that unemployment levels in the UK rose by 164,000 between June and August — the biggest rise for 17 years — and US authorities followed Gordon Brown's lead by pumping hundreds of billions of dollars into into US banks in an effort to restore confidence.

「It's tragic that so many firms who have been around for five, six or seven years and have put in a lot of hard work into building up successful practices are going to vaporise,」 the consultant said.

「Out in the real world, this is what's happening — it's imploding. You would expect safe clients like Cambridge colleges to be ploughing on with their schemes but if they have to got to raise, say, £8 million over the next three years, they are telling the architect to go away because it's not going to happen. Work is being stopped by text message in some cases.」

A number of firms across the UK contacted by BD this week confirmed that they had been forced to make redundancies in the past few weeks, with many others saying they were considering such action.

Chairman of housing specialist PRP, Andy von Bradsky — who said his firm had recently laid off a 「small」 number of staff — admitted that the practice had been taken aback by the collapse of the financial markets.

「If there was any doubt it was going to be difficult, the last couple of weeks have dispelled that,」 he said. 「Overseas is not a panacea. It presents its own problems, and it doesn't necessarily soak up surplus staff in the UK.」

Roger Stephenson, partner at Manchester-based Stephenson Bell and outgoing president of RIBA North West, said he had made five staff redundant in the past month. 「Anyone who is seriously involved in housing is really badly hit,」 he said. 「I've heard of firms having cut up to a quarter of their staff. These are reasonably sized practices.

「You really have to plan pessimistically. Only count cast-iron projects as future cash flow.」

Graham Morrison, partner at Allies & Morrison, said the firm had so far avoided laying off any of its 270 staff but added that he feared for friends in the profession.

「We have friends who are being made redundant,」 he said. 「That is the tragic thing — you're dealing with people's lives.」

We would love to sound like we have a strategy… but it is very difficult to plan when cataclysmic things happen at such short notice. I don't believe anyone has any real strategy.」

Even Stirling Prize winner Feilden Clegg Bradley Studios admitted it was nervous and was making plans to cope in the event of a recession. These include further collaborations with other practices and increasing workload abroad.

「We've not had to lay people off yet, but we have to prepare ourselves because projects can falter at any moment,」 senior partner Keith Bradley said.

「We're sort of hopeful but it depends each month on winning competitions. We have submissions for Ojeu going out each week and if we can win our fair share, we'll still be in business.」


View from the coalface: how firms are faring

Small practice

Alan Pert, director of Nord Architecture, which employs seven architects

There's a lot of communication in the architectural community that suggests folk are feeling very vulnerable.

We've got a lot of CVs in — easily four a day over the past two weeks from practising architects.

We're fortunate because we've got a big job in Ireland, the Wexford project, which is a major focus for the practice. We tend to not specialise in one sector, and perhaps it's because of that that we've not seen a direct effect on the business yet.

But we have had a drop in enquiries. We interviewed for a job last Monday, were told we had it on Tuesday, and on Wednesday got a phone call to say the project was put on hold.

There's also been a massive increase in enquiries from contractors and suppliers looking


Medium-sized practice

Rab Bennetts, director of Bennetts Associates, which employs 45 architects

It's time to exercise extreme caution. On the face of it, we have a very good workload and are diversified. But we've been through this before and can't count anything as certain. Jobs will be tougher to win.

We could talk ourselves into a worst-case scenario, but of course work is slowing down all across the industry. The simple truth is there won't be as much funding around and order books are dropping off. Some firms are getting planning consent for new buildings but I can't see when they will get developed.

Casting my mind back to 1989-90, lots of firms were measuring their survival in terms of how many months they had until they went off the cliff edge. Today most people have got lots of work that is still current, so they have months or years to go.

We are not as much affected, but [Other practices] might have to chase work in the Middle East.

Big practice

Martin Pease, design director of Atkins, which employs 650 architects in the UK

One in five firms will go out of business, at least. This will happen just before Christmas and just after. We have been planning for a substantive change in the market place, but I didn't appreciate that we'd see quite such a drop.

A lot of architectural businesses are not well run. Too many have too much credit with clients, and anyone who doesn't understand that cash is king will struggle. A lot of practices are naïve. Anyone in the commercial or residential sectors will have projects cancelled or put on hold.

I don't think international work is the right answer — you need to be the best at what you do in the UK with international reach, which makes you more attractive. You can't rely on just one or the other.

We are looking to recruit 10-15% more staff over the rest of this financial year.

The developer

Nick Johnson, development director at Urban Splash, which employs over 250 staff

I think the market will settle down — the government has made the right kind of moves to restore confidence. But like an oil tanker, it takes a while to slow down even when the engines are switched off and a while to get going when the engines are switched back on.

I think the severity [of the crisis] has taken everyone by surprise. One could anticipate what has happened but it's the speed that's surprising. I used to read the Financial Times every night and I've stopped doing that.

Meanwhile, we do what we can. We are reasonably optimistic and I think that the new Homes & Communities Agency coming into full force in December will start to have a profound effect on the market place. We're very much looking forward to that.

Being optimistic and hoping for the best is the state of mind here.
eaGer
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說到英國,我想起前幾天在 NYTIMES 上閱讀到的文章,是「世界是平的」這本書作者 THOMAS L. FRIEDMAN 所寫的專欄文章「The Great Iceland Meltdown」,才知道冰島破產影響到那麼多英國人,有英國的政府機關、警察局,連劍橋大學都被影響到了,因為很多英國機構、學校都將錢存在冰島的線上銀行(像是 http://icesave.co.uk/),現在領不出來了!

The Great Iceland Meltdown
By THOMAS L. FRIEDMAN
Published: October 18, 2008

Who knew? Who knew that Iceland was just a hedge fund with glaciers? Who knew?

If you’re looking for a single example of how the globalization of finance helped get us into this mess and how it will help get us out, you need look no further than British newspapers last week and their front-page articles about the number of British citizens, municipalities and universities — including Cambridge — that are in a tizzy today because they had savings parked in Icelandic banks, through online banking services like Icesave.co.uk.

As Dave Barry would say, I’m not makin’ this up.

When I went to the Icesave Web site to see what it was all about, the headline read: “Simple, transparent and consistently high-rate online savings accounts from Icesave.” But then, underneath in blue letters, I found the following note appended: “We are not currently processing any deposits or any withdrawal requests through our Icesave Internet accounts. We apologize for any inconvenience this may cause our customers.”

Any “inconvenience?” When you can’t withdraw savings from an online bank in Iceland, that is more than an inconvenience! That’s a reason for total panic.

So what’s the story? Around 2002, Iceland began to free its banks from state ownership. According to The Wall Street Journal, the three banks that make up almost the entire banking system in Iceland “grew quickly on easy credit” and “their combined assets rose tenfold in five years.” The Icelandic banks, while not invested in U.S. subprime mortgages, had gone on their own borrowing and lending binges, wooing savers from across Europe with 5.45 percent interest savings accounts.

In a flat world, money can easily seek out the highest returns, and when word got around about Iceland, deposits poured in from Britain — some $1.8 billion. Unfortunately, though, when global credit markets closed up, and the krona fell, “the Icelandic banks were unable to finance their debts, many of which were denominated in foreign currencies,” The Times reported. When depositors rushed to get their money out, the Icelandic banking system had too little reserves to cover withdrawals, so all three banks melted down and were nationalized.

It turns out that more than 120 British municipal governments, as well as universities, hospitals and charities had deposits stranded in blocked Icelandic bank accounts. Cambridge alone had about $20 million, while 15 British police forces — from towns like Kent, Surrey, Sussex and Lancashire — had roughly $170 million frozen in Iceland, The Telegraph reported. Even the bobbies were banking in Iceland!

So think about it: Some mortgage broker in Los Angeles gives subprime “liar loans” to people who have no credit ratings so they can buy homes in Southern California. Those flimsy mortgages get globalized through the global banking system and, when they go sour, they eventually prompt banks to stop lending, fearful that every other bank’s assets are toxic, too. The credit crunch hits Iceland, which went on its own binge. Meanwhile, the police department of Northumbria, England, had invested some of its extra cash in Iceland, and, now that those accounts are frozen, it may have to reduce street patrols this weekend.

And therein lies the central truth of globalization today: We’re all connected and nobody is in charge.

Globalization giveth — it was this democratization of finance that helped to power the global growth that lifted so many in India, China and Brazil out of poverty in recent decades. Globalization now taketh away — it was this democratization of finance that enabled the U.S. to infect the rest of the world with its toxic mortgages. And now, we have to hope, that globalization will saveth.

The real and sustained bailout from the crisis will happen when the strong companies buy the weak ones — on a global basis. It’s starting. Last week, Credit Suisse declined a Swiss government bailout and instead raised fresh capital from Qatar, the Olayan family of Saudi Arabia and Israel’s Koor Industries. Japan’s Mitsubishi bank bought a stake in Morgan Stanley, possibly rescuing it from bankruptcy and preventing an even steeper decline in the Dow. And Spain’s Banco Santander, which was spared from the worst of this credit crisis by Spain’s conservative banking regulations, is purchasing America’s Sovereign Bankcorp.

I suspect we will soon see the same happening in industry. And, once the smoke clears, I suspect we will find ourselves living in a world of globalization on steroids — a world in which key global economies are more intimately tied together than ever before.

It will be a world in which America will not be able to scratch its ear, let alone roll over in bed, without thinking about the impact on other countries and economies. And it will be a world in which multilateral diplomacy and regulation will no longer be a choice. It will be a reality and a necessity. We are all partners now.
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不過台灣總是後知後覺,台灣的建築業者可能還要過一陣子才會開始叫痛吧!恐龍的神經傳導速度比較慢。

台灣的建築師老闆們恐怕也不大敢在公開的媒體上講最近的案子被取消了,怕得罪人還是怎樣就是了。
::dodo::

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雅虎裁員10% 明年全球2億人失業 
更新日期:2008/10/23 01:20


現在還有工作的人可能得感謝自己如此幸運,根據聯合國國際勞工組織的預估,全球到了2009年底,失業人口還會再增加2000萬人,屆時全球失業人口將超過2億1千萬;而網路大廠雅虎第三季的財報獲利比去年少50%,雅虎也決定裁員10%,大約1500人會失業。

美國的裁員、倒閉風一波接一波,經濟的整體不景氣,不僅讓美國失業率屢創新高,現在聯合國國際勞工組織還發佈更可怕的消息;聯合國國際勞工處指出,預估到明年底,全球失業人口還會增加2000萬人,屆時全球失業人口數將達2億1千萬。

國際勞工組織根據就業率、企業人力規劃和經濟前景,預估出這個驚人的數字,其中有些行業將爆發失業潮;國際勞工組織說表示,營建業、地產業、財務服務業與汽車業,所受的打擊會最嚴重。
不過也有比較不受影響的國家,像中國這種內需市場大、比較不依賴出口的國家,較不受影響,中國目前出口值僅佔全國經濟的11%;但聯合國也擔心,有些只靠外銷的貧窮國家,可能更受打擊。


本則新聞由NOWnews提供 2008/10/23
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經濟危機終結紐約建築業繁榮
北京新浪網 (2008-12-29 12:25)

  紐約幾乎有50億美元的在建工程已經因經濟危機延期或者取消,對於去年提供了13萬個工作崗位的建築業是個沉重的打擊,也可能使紐約城的景觀在兩年內絲毫沒有變化。

  非贏利機構城市土地學會房地產融資部高級研究員史蒂芬•布蘭克說:『目前找不到為這些工程融資的方法。』

  已經有多種跡象表明,全美的開發商都在面臨著同樣的借貸困境。根據美國聯邦儲蓄保險公司的資料,建築與土地開發貸款的增長率今年暴跌,到9月為止僅為 0.08%,2007年增長率為11.3%,2006年為25.7%。已經貸款的開發商無力按期償還的比例到9月止已經增加到7.3%,2007年只有 1%。

  停工的50億美元工程中包括各式建築:奢華的摩天大樓,辦公室翻修及大銀行和醫院的分支機構等。
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紐約50億美元發展項目因經濟危機裹足不前
羊城晚報 (2008-12-29 12:20)

  據新加坡《聯合早報》報導,美國紐約市有50億美元的發展項目,因為眼前的經濟危機被取消或推遲,未來兩年該市地貌將保持不變。

  建築業可說是紐約市過去20年重要的經濟支柱之一,該領域去年創造的經濟總值達300億美元,它的長期停頓將給紐約經濟帶來重大衝擊。和去年同比,該市10月份的建築領域,失業率就激升了五成以上。

  建築業去年為紐約市製造了13萬個就業機會,但是今年由於信貸緊縮,建築商無法獲得貸款,來開展新的建築工程。美國聯邦保險機構的數字顯示,今年美國全國建築工程和土地發展方面獲得的貸款只增長了0.08%,相對於去年的11.3%和2006年的25.7%,明顯地大幅度減少。

  不過,有些獲得貸款的發展商無法償還貸款;根據紐約房地產研究公司Reis的調查,今年9月份全國無法償還的貸款,從去年同期的1%,增加到7.3%。建築發展商為了避免無法償還貸款的情況,不得不取消建築工程。

  其中一名建築發展商布賴策曼過去20年在紐約市開展了20多項建築工程,今年原本計劃建造三家豪華旅館,但是卻無法籌集到所需的3億7000萬美元資金,建築計劃因此停滯不前。
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曼哈頓房市冷 空屋率驟升11%
* 2008-12-31
* 中國時報
* 【王良芬�紐約卅日電】

 金融風暴後,曼哈頓房地產進入嚴冬,商業大樓空屋率上月上升了一○.九%,專家說,紐約市正在出現大量施工停擺的地基、未完工的建築,及空置的摩天大樓。九月份投資地產建設的金融巨頭雷曼兄弟破產,導致建築業的危機飆升,許多高級投資建設專案癱瘓,陷入分析家所稱的「雷曼兄弟的癱瘓」。

 曼哈頓下西城一處興建中的摩天大樓,於今年夏天開工,在地基完成三分之一後,因資金不足被迫停工,這棟摩天樓預定有一五五個酒店房間,以及二八○間公寓,目前現場卻是一片淒涼,不知何年何月可復工。

 開發案延後開工 甚至取消

 《每日新聞》指出,據房地產公司Newmark的最新報告,在過去十個月中,曼哈頓商業大樓的租價節節下滑,從每平方英尺六六.五七美元降低到每平方英尺五七.四九美元。

 報導說,從曼哈頓下城雀爾西到布魯克林的威廉斯堡,許多預售大樓滯銷,業主找不到足夠資金,以致工程被迫停頓。房地產分析師吉普考維奇說,紐約市將到處可見閒置的摩天樓,和開挖後停工的地基。

 房地產業經紀公司Core Group Marketing集團執行長奧斯赫說,紐約的房地產開發案有八○%要嘛取消,否則也延後開工。統計顯示,紐約住家需求將從現在的每年三萬五千個單位,到二○一○年減少到一萬八千個單位,最近至少有四十億美元的工程遭到取消或停工。

 連鎖效應 木工電工生意差

 二○○五年因景氣大好,紐約市一片建築熱,當時,每月申請建新樓的案件平均六四五件,今年以來,申請案不到三百件,主因開發商無法取得貸款來施工。

 過去銀行要求開發商準備一五%的自備款,今年該比例提高到四○%,以致開發商週轉不靈。因連鎖效應,下游的木工、電工和水管工生意異常冷淡。

 建築業雇主協會的克雷蒂估計,紐約建築業的失業率明年將達四○%到五○%,這是他從沒遇過的危機,意味將有多達五萬建築工人失業。
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全球知名的工程顧問公司 ARUP 裁掉了英國辦公室400名員工,將近該辦公室10%的人力。

來源:BD
Arup slashes nearly 10% of UK workforce
14 January, 2009

By Will Henley

Arup is to slash its UK workforce – including staff at architectural wing Arup Associates – by 400, blaming 「turbulent times」 in the world economy.

The cuts, which amount to nearly 10% of the global design and engineering group's 4,200-strong UK staff, are 「essential」 to ensure its 「long-term business health」, a company spokesman said in a statement.

Arup, which has a total of 10,000 employees across 37 countries, has yet to announce any cuts to its international workforce. The firm, which helped build Sydney Opera House, was set up by Ove Arup in 1946.

The spokesman said: 「These are turbulent times in the global economy, and Arup – as with any responsible business – needs to ensure its long-term business health.

「It is essential that we match our resources to our anticipated workload, and it is with regret that we have decided to implement a programme of up to 400 staff redundancies.」

British-based staff will undergo a 90-day consultation period.
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Re: 經濟危機重創美國建築師 Architects Hit Hard by Financial Crisis

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Architectural Record有篇報導講到,美國建築師協會(AIA)開始縮衣節食,刪減各個部分的支出,AIA 發現,已經有些建築師延遲付款(會費之類的款項),甚至有些建築師撤銷其註冊的會籍。

AIA Takes Cost-Cutting Measures Due to Slumped Economy
April 30, 2009
By Bruce Buckley

The economic woes affecting architects nationwide are echoing through the ranks of the AIA. The association has announced sweeping plans to cut costs as a means of combating slumping revenues brought on by the recession.

“The Institute is feeling the impact of the recession just as we are in our firms and practices,” said Marvin Malecha, FAIA, 2009 president of the AIA, in a March 23 statement.

In the first quarter of the year, the AIA saw a shortfall in membership dues, as some architects deferred payments and others ceased membership completely. Malecha also cited a decrease in revenues for its Career Center (an online job listing site).

Attendance for the AIA 2009 National Convention and Design Exposition in San Francisco, which starts today and ends Saturday, also is down. Matt Tinder, AIA spokesperson, said convention revenues are expected to drop by 12 percent compared to 2008. This year’s attendance is estimated at 22,000, nearly 2,000 less than last year.

To meet its 2009 operating budget, the AIA is focusing on trimming expenses without cutting its headcount. Rather than reduce staff, the association will institute a mandatory two-week unpaid furlough of all national staff “from the CEO down.” The furloughs are planned for the first week of June and the first week of August. During that time, staff will not be able to provide member services, answer phone calls, or e-mail messages.

“While our goal is to minimize the impact on our members and customers, we also know that closing the Institute will have implications,” Malecha said. “We will structure implementation of the furloughs to ensure the least disruption of member services.”

Reduced staff travel and face-to-face committee meetings are among the direct expense cuts. Staff and board members will rely more heavily on technology for communication.

Malecha added that despite the recession, the association’s finances are in “good condition.”

“I am confident we will maintain our focus on providing service to our members during the economic downturn and, working together, emerge a stronger Institute and profession,” he said
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