The credit crunch is taking its toll on local architecture firms, as developers delay and cancel projects because they can’t get them funded.
Oz Architecture cut its workforce 15 percent to about 95 people in its Denver studio, said Jim Bershoff, president of the company. Oz’s Boulder office also has had some layoffs.
“It’s very painful,” Bershoff said. “Our company has been very careful about hiring when we need people and keeping them. We have never had a significant layoff.”
Other firms that said they have cut employees include RNL, Buchanan Yonushewski Group and Davis Partnership.
“We’re trying to be creative and trying to keep people busy in every way we can,” said Brad Buchanan, principal at Buchanan Yonushewski Group, which laid off three people. “It’s a much more competitive marketplace right now.”
Others that have made cuts in the past year are David Owen Tryba Architects, DTJ Design and Klipp, according to people in the industry. Representatives from those firms could not be reached for comment.
So far, one of Denver’s largest firms, Fentress Architects, has not shed employees.
“We haven’t been laying off, because we’re busy,” said Curt Fentress, the company’s founder.
Fentress is working on a number of public projects, including several airports, that have not been affected by the credit crunch.
“We’re doing a lot of work in the Middle East as well,” Fentress said.
The slowdown in the architectural world doesn’t bode well for the construction industry, said Kermit Baker, chief economist for the American Institute of Architects.
“Design activity is a very predictable leading indicator for construction activity,” Baker said. “It leads it by nine to 12 months.”
The AIA’s recently released Architecture Billings Index plunged to 36.2 in October, its lowest level since the survey began in 1995. The index in the West was 34.9. A score above 50 indicates an increase in billings, while a score below 50 indicates a decline.
“Scores in the 30s are extremely rare,” Baker said. “We’ve only seen three or four of them.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
