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How are you dealing with creepy recession ?


archkre
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I see that there are many companies having difficulties at the moment.

But there are still developers that are developing! Most of the projects are smaller now. And most larger projects have been put on hold or split into several smaller projects.

I try to come out of this recession better as i went into it. And until now things seem to go quite well for me and my company. That is also why i am positive about the future.

It is harder to sell the projects/houses. That is why they need better images and animations to sell. But they do not want to pay as much for the visuals as they did in the past. That is why (i hope) they will come to me.

Best quality for a very good price.

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I actually get the feeling that things are more on the upswing at this point; I really feel that a large part of why this recession has been so bad is that the hype and fear that it brought really threw a lot of people into conservation mode. I'm not talking about the developers, but people in general. If money isn't flowing it's going to affect the entire economy, not just a particular market.

 

It seems that most of the people I know are going back to "business as usual" and have a more optimistic mentality for growth in the next couple years.

 

One thing I heard from one of the partners at my old architecture firm that has really resonated with me is that architects are the "canaries in the mine" in regards to the economy. For those that don't get the euphemism; the gist is that we are the first to really feel when things start to get bad, and from what I hear, we're also usually the last to fully recover.

 

On the other hand, I've found the best approach to be this: ALWAYS BE DESIGNING... I'd rather be constantly learning, growing, and exercising my creativity in new ways (even if it means being paid less than I'd like), than sitting around doing nothing.

 

In another thread here (I think it was the apocalyptic "archviz is dead" thread) the general consensus was that those who can adapt and change will make it through this. Natural selection is at work here guys (and the occasional gal).

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\

It seems that most of the people I know are going back to "business as usual" and have a more optimistic mentality for growth in the next couple years.

 

\

 

Funny because my impression here its the exact opposite. My fear is that CA is about to be hit with another huge wave of layoffs come the first part of next year (at least in AEC). Again maybe things are so much worse here in CA but I know of very few people that arent either layed off or on furloughs or have a spouse who is (and this is not just AEC but everywhere). And I know so many firms that did the layoffs earlier this year and now are looking at closing their doors because the work that their firm has had for the last year or 2 is finally ending.

 

I have heard those same numbers that Maxer was referring to about over 20% unemployment and I think in areas of CA its closer to 25%. I know some areas of the economy may be picking up and I know people are talking about recovery but it seems that even if there are projects ready it will take months to start work...

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(this is a rant)

 

I havent heard any good rumors to be honest. I play footy with some stock market guys, they dont see any change for the better in the US for AT LEAST 2 years from now. I know that sounds bleak, but I dont think any of the projects I heard about being shelved getting funding. I also know 2 doctors that cant get a mortgage....

Whether an individual company gets a couple of projects is not an economic indicator. People need to earn a living and developers are no different. There will be those that push ahead regardless, but what we are really dependent on is free flowing credit. Freedom of credit at the top. Banks lending to banks, developers taking out huge lines of credit against big projects. Look at the numbers, thats not happening. Un-employment is slowing......but not reversing. Now even the government is going broke, which will lead to inflation. Chicago cant pay its bills....vendors are starting to turn down city contracts.

 

The thing about a recession is everyone wants it to be over. So the government, the businesses, the clients, everyone likes to believe the end is just around the corner. However, this is a global recession and the US is going to reappear on the economic landscape as less of a powerhouse than it used to be, in part because of its approach to credit. This will have a repercussion on the building industry. The Dubai fiasco is a like the problem of the US in a microcosm. The whole 'Build it and they will come' philosophy just doesnt hold water if 'they' cant get credit.

 

Greedy, powerful people have tainted the well for the rest of us. I'm incredibly angry that such indifference for the little guy just goes as business as usual in the States. Such impunity to prevent the big guy getting his way and the taxpayer carrying the can regardless is a situation that smacks of the medieval rather than an enlightened, fair, just society that this 'pay-to-play' democracy claims to be.

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I have to agree with Tom on this. Things are not really getting any better for US based studios. Some architecture firms might be seeing an increase, but I don't think the work is trickling down yet.

 

I also think the next 2 months will be very tough as things always slow down during the winter holidays. Gather your nuts and stay warm ;)

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What frustrates me even more is that the Government over here could do a lot more - take for example companies that have to let people go. The majority of employees receive redundancy and the company gets 60% back. The employee then goes on the social welfare claiming money from the Government. So would it not be an idea to help small to medium size businesses by funding them to keep people in employment and keep them skilled?

 

Regards

Nick

3rd Dimension

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  • 2 months later...

I just saw this thread for the first time. Very interesting comments. All though my situations is getting worst, at the office we where speculating that by this time we where going to be closed. But there is a little bit of movement on the industry. not enough but more than few months ago. there are mixed indicators on the economy,back in 2007 most of the people where in denial of a recession now most are in denial of a recuperation. some say we still have a second bottom ahead. the truth its that no one knows for sure. if you are a pessimist you will do well if the worst happens, if you are an optimist you will do better if the best happens and either will say I knew it.

 

some facts..

-if there is a 20% unemployment there is a 80% of people doing business but 100% of them are scared to spend invest even if they need to, but eventually they will.

-construction industry is the first and most affected, but there will be a boom again, and a fall again,,, just need to be prepared.

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I have just noticed this thread and have to admit to only reading the first and last pages.

 

What a startling contrast from then until now.

 

My brother mentioned to me last year that he thought that the recession would be a double dip, I didn't think so but, he was right.

 

In all honesty I am getting a bit bored of this nonsense and the governments are as effective as a fart in a hurricane.

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thats why we should not relay on farts.... like a mentor once told me.. if we people expect the gov to solve the problems... than there is no solution... not because they cant, or are not capable, its because we do nothing.

 

My brother mentioned to me last year that he thought that the recession would be a double dip, I didn't think so but, he was right.

 

Wait... just a question, in this double deep ... are done with the first one? are we on the top at the middle? what stage are we spouse to be?

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Don't get me started on politics.

 

In the UK, the Royal Bank of Scotland which is 84% owned by the state is paying approx £1.4 BILLION !!!! in bonuses to investment bankers.

 

Apart from being fundamentally and abhorrently wrong their argument is that these bankers will go elsewhere to find work if they are not paid the huge salaries and bonuses that they are due for clever work.

 

And what does the government do ? Leans to one side and lets out a wee squeaker.

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  • 3 weeks later...

I also find it disgusting how the bankers seem to still be getting away with murder after all this. Our government isnt doing a thing about it becuase they are a load of crooks themselves. I would sack the bankers and then the politicians. I must admit in the coming election I am struggling to want to vote for anyone in the UK.

 

I have been out of work since start of March because of the recession in the UK. Mind you as long as it doesnt last too long I am not that bothered - I am spending the time learning 3dsMax - something Ive always wanted to do - with the view of starting up as an architectural illustrator instead of being an architect. Still will get hit by any further recessions but having my own business would mean it would be at least my fault and no-one elses if this happens again. I think for a few people these recessions can be a godsend in that they may lose a job they hate anyway but they might just use the chance to start doing something they really enjoy instead. Try to look at this situation positively and as a challenge I say.

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-construction industry is the first and most affected, but there will be a boom again, and a fall again,,, just need to be prepared.

 

There are ups and downs every 10 years or so with every 30+/- years a higher amplitude up and down with some increase up or down over a century. I feel for those who lost jobs, work and are having to fight an uphill battle, though I still chuckled when I first started reading this thread. Why- I've been personally & heavily effected by every down turn since the early 80's. This is normal get used to it. Even this time round being really harsh and un-fair seems to have a historical cyclical pattern. Thankfully these depression like recessions occur once in a life time... about the time the generational memory of the pain from the previous one gets lost, it happens again. It's human nature. The government and economy being filled with humans kind of makes it un-aviodable. Try to control human behavior all you want, but at the end of the day the only entity left and or that will put food on your table over the long haul best, for you ... is you.

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