Architecture work hard to find.

WITH ABOUT $3.5 MILLION IN BILLings, Black Corley Owens & Hughes PA in Benton had its best year in 2008, even though projects started to disappear in December.

In January, the firm, which was founded in 1979, was released from two projects in Texas because of the sluggish economy, said Leslie Owens, one of the firm's principals.

"If we don't get another project, we can limp along for four more months; then we'd have to let everybody go," Owens said. "Of course, we're hoping to get some more work before the four months are up."

These are miserable times for architecture firms. The recent passage of the $787 billion American Recovery & Reinvestment Act, however, may mean a brighter future.

"Architects and design and construction professionals are ready to work closely with state and local officials to help them use these resources effectively," Marvin Malecha, president of the American Institute of Architects, said in a Feb. 15 news release. "The bill funds infrastructure projects to create thousands of jobs--right away--in industries devastated by the economic crisis."

Charles Foster, a principal at Taggart Foster Currence Gray Architects Inc. in North Little Rock, said last week that he had received calls from clients anticipating government money and who are starting to plan projects.

"Several clients are wanting us to help provide design services, ... so they can be at the front of the line to take advantage of that opportunity," Foster said.

He said it was too early to talk about the projects that were being considered.

Still, the stimulus money can't come fast enough for architects.

In January, the Architecture Billings Index, a leading economic indicator of construction activity, moved up only "very modestly, signifying that the design industry remains mired in a steep downturn," according to a January AIA news release.

"The inability to get financing for construction projects is a key reason that business conditions continue to be so poor at design firms," AIA Chief Economist Kermit Baker said in the Jan. 21 news release.

Although the Arkansas chapter of the AIA doesn't gather statistics on billings or employment from its approximately 500 members, anecdotal evidence shows the outlook is bleak.

"It projects to be [one of the worst times] I have seen since I started teaching 30 years ago," said Jeff Shannon, dean of the Fay Jones School of Architecture at the University of Arkansas at Fayetteville.

He also said he was unsure how much an impact the stimulus package would have. "It depends on how it is administered and how quickly it's put into effect," Shannon said. "It's got to help some."

In the meantime, firms are nervous, he said.

"I've heard some firms say they've got six months of work that they know of and they're getting antsy," Shannon said. "I've talked to firms that have a month left of current work."

Students Out of Luck

While firms are having a tough time finding projects, architecture students can't find jobs.

Last week, the Jones School of Architecture held a "career day." Only 13 firms were scheduled to attend the job fair, half the number that appeared in 2008, said student Ben Trantham, who will graduate from the five-year architecture program in May.

"That's not even one firm for every graduate out of this program," he said. "And most of the companies coming don't have a job to offer. They're just trying to maintain a relationship with the school."

Years ago, Trantham said, the firms climbed over each other to attract students.

"The tables have turned to where we're fighting to see just what we can get," he said.

Once out of school, Trantham said, he'll try to land an internship or consider going to graduate school.

During good times, firms had room for entry-level architects, said Thad Kelly, a vice president with Cromwell Architects Engineers in Little Rock. He also runs the firm's Fayetteville office.

[ILLUSTRATION OMITTED]

"I remember coming out of school in the 1970s, and we had 18 to 20 percent inflation and interest rates were just crazy," Kelly said. "There were no entry-level positions, so the bad times don't last and the good times don't last."

In the last 10 to 15 years, most architecture firms had plenty of work to do and were constantly looking to hire registered architects, Shannon said.

Now, he said, he doesn't know of any firm that is hiring.

Competition Increases

The competition for the small projects that are available has increased, said Brent Stevenson, executive director of the Arkansas Chapter of the AIA.

"We used to have more larger projects, and now there are more additions and remodels and things like that," said Wallie Sprick, the president of the Arkansas AIA chapter and a principal at Wittenberg Delony & Davidson Architects of Little Rock.

Owens, with Black Corley Owens & Hughes, said his firm recently interviewed for a $3 million project at Southern Arkansas University at Magnolia.

A project that size would usually attract bids from only a handful of firms, he said. This one got 17.

Just a few years ago, Owens' firm spurned residential projects because they were too small. Instead, the firm focused on commercial work and has designed projects tot Saline Memorial Hospital, Benton Landers Toyota and Little Rock First Baptist Church.

"We really didn't have the time to work on residential projects," said Owens, whose firm has a staff of 10. "We accept them now because we need more income."

If the firm can't find work, the next step will be trimming the principals' salaries.

"We don't want to let anybody go unless we have to," Owens said.

Miller Boskus Lack Architects PA of Fayetteville laid off six people in November 2007 because of the economic slowdown, said Steve Miller, a principal in the firm. The firm now has 16 employees.

Miller Boskus has work to do now, but Miller isn't sure how long that will last.

"In northwest Arkansas, most speculative buildings, like office buildings, have stopped," Miller said. "Right now we're busy, but we don't know what's going to happen the rest of the year."

He said all his firm can do is wait for projects.

"The only way an architect can guarantee his workload is to be his own client," Miller said. "Of course, in this market, most architects aren't going to want to develop their own work."

Miller said increasing his advertising wouldn't help because developers and owners aren't building.

"A lot of architects don't advertise," he said. "They rely on repeat clients or their reputations or people coming to them. But when people don't come in the door, you just don't have anything to draw on."

Kelly, with Cromwell Architects Engineers, said potential clients are putting projects on hold--in some cases for a year or longer--because they can't get credit or bonds to pay for them.

"Everybody is sort of tightening their belt and looking very hard at projects," he said.

Bright Spots

Some firms said they have been fortunate to still have work.

Jim Foster, a principal at Amirmoez Foster Hailey Johnson Architects & Planners in Fayetteville, said his firm has benefited from working on projects for the University of Arkansas at Fayetteville.

However, when those projects are completed in April, his firm will need to find work too.

"We have some church projects," Foster said. "But even the church clients are being cautious."

One benefit of the downturn is architects are pushing more environmentally friendly and efficiently designed projects, said Sprick, the president of the Arkansas chapter of the AIA.

The AIA also is lobbying to use federal stimulus money to build greener buildings. "Making our federal buildings more energy efficient will save taxpayers millions of dollars and reduce the effects of carbon dioxide emissions on the earth's climate," Malecha said in the AIA news release.

Still, Sprick said, the green projects are a hard sell in the current economy.

"It's difficult to convince owners when times are tough that it would be prudent for them to spend a few more dollars for a more efficient window system or heating system," Sprick said. "But I think the profession as a whole has latched onto green building design and sustainable design from here on out."

By Mark Friedman

[e-mail]