The impact of coronavirus: what architects can learn from the financial crisis of 2008

Even though I grew up in semi-rural Southwest Missouri, I have always loved cities—their energy, their feeling of connectivity, their history. But, more than anything, I was fascinated by their structures. Because of this, when I was applying for college, I chose architecture. Although I was promptly denied entrance to Architecture School due to my lack of a physics credit (and I eventually took another path), my love of cities inspired me to later move to Chicago.

As it turned out, as a pre-crash graduate, opting for an English degree over an Architecture degree, strangely, was the best thing I could have done. You see, I had many friends in architecture, and, while my freelance career flourished, their careers – unfortunately – did not.

Those that were lucky enough to get jobs were stuck at the very bottom levels, designing boring, repetitive, big-box structures with no hope of moving up the corporate ladder. Because of the financial crisis and the resulting construction halt, these young, energetic, highly-motivated architects were provided no encouragement, no prospects, and no additional skills. As a result, many left the industry entirely.

Difficult decisions
Don’t get me wrong, I empathize with anybody who made the difficult decision to cut costs by cutting staff in 2008. Faced with the circumstances at the time, it was the logical choice. Back then, we weren’t sure how long the crash would last. Some projections indicated that the recession would rival the Great Depression, and perhaps last for decades.

As it turned out, however, those firms that focused on limiting employee growth ended up shooting themselves in the foot. Because, just on the other side of that crash, lurked an unprecedented boom in construction.

And, as so many architects never had the opportunity to progress in their career path, when that boom happened, there was an over-abundance of entry-level architects, but few who possessed the skills required to move into managerial positions. A 2015 investigation into the state of architecture in New York reported that, “Without those seasoned [architects, many] firms are making do with less-experienced people, and as a consequence, are devoting more time, as well as money, to training them.”

A roundtable discussion hosted by The Architect’s Journal echoed this conclusion, stating that the “skills shortage remains the most pressing issue facing architecture practices today.” The panel went on to explain that architects who are highly skilled in Revit are particularly in demand.

But what does that have to do with the situation we’re in today with the coronavirus?

In times of uncertainty
Today, we are in the midst of a coronavirus slowdown. As more people are forced into quarantine, we will see construction projects stall. We will see bottom lines shrink. And, with so much uncertainty, it is natural to want to go the same route that we did in 2008 and cut staff or minimize their responsibilities to keep salaries low.

But, today, we can take comfort in the fact that, unlike the 2008 Financial Crisis, there is an end date to this. We don’t know when, but we can say with near certainty that it is a matter of months, or even – cyclically – a couple years. But not decades. In fact, we’re also already seeing government programs that will hopefully help minimize damage to business.

On the other side of it all
Looking beyond the coronavirus crisis – when we do emerge – we will return to a world where the outlook for construction is incredibly bright.

Worldwide, populations continue to increase rapidly. The United Nations Department of Economic and Social Affairs predicts that by 2030, the population will rise to 8.5 billion and will reach 9.7 billion by 2050. Pair this with a trend toward urbanization, and we can conclude that the built environment will have to expand dramatically to house, employ, and provide goods and services for this increase in population.

The Bureau of Labor Statistics predicts that demand for architects will increase by 7% through 2024, and those, “…with up-to-date technical skills—including a strong grasp of CADD and BIM—and experience in sustainable design will have an advantage.”

While I am using architecture as my example because it hit me personally, of course, this rings true across all aspects of construction and manufacturing. We are going to need highly skilled supervisors, pipefitters, HVAC technicians, electricians, engineers, and on, and on.

So, yes, I completely understand that the world is a scary place right now as a result of the coronavirus. I know that we all have a lot on our plates and a lot of worries on our minds. But, I also hope that we can learn from 2008 and take this opportunity to reset, improve our skillsets, upgrade our technology, and come out ready to crush this next construction boom.

This article was originally featured in Issue 56 of the e-magazine, “The Blast.” Click HERE to read that issue in its entirety.

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