ArcWest Architects has certainly seen a little more activity in recent months which we can only get excited about with cautious optimism.  It has been a challenging 18 to 24 months working to engage clients for active projects in this economy, we think it is only natural the company keeps it’s guard up.

This sentiment is resonated in Kermit Baker’s, AIA chief economist comments in the article.  “While this recent uptick is encouraging, this state of the industry is likely to persist for a while as we continue to received a mixed bag of feedback on the condition of the design market … “

That said, ArcWest is very encouraged by both the increased movement in the industry and the reports confirming other firms are experiencing the same.

Read more:  Architectural demand shows uptick – Denver Business Journal

We encourage you to read the article “Recession’s silver lining: cost to build” which affirms ArcWest premise promoted in past communications.  There is a great opportunity to have a commercial architecture / facility project designed and built now for much less expense than what most executives and planners have been accustomed to prior to the start of the recession.

See our earlier post “Commercial Architecture | Construction Costs are Down”

For more information, contact ArcWest Architects

- Robin Adams

For those less acquainted with the concepts of lean manufacturing, or lean production:  Lean is about increasing efficiency to offer greater value to a customer or client.  Another way to phrase: Lean is about preserving value with less work.  This approach can create savings through efficiency which can be shared between reduced costs to the customer and greater profit to the business.

Rick shared “We are only at the beginning of implementing lean in our (newspaper) organizations and most would benefit from a structured lean program” in response to the the question:  “How much further can this concept be taken into our daily practice?”

Please see the complete “Interview with Rick Ruffino” article by Charlotte Janischewski.

For more information, contact ArcWest Architects

Article from News & Tech | October 2009

Click the following link to see the original Article.

This continued decrease in construction cost will certainly improve both the level of and length of time for a return on investment in a capital project.  Taking into effect of the continued decline, and the time required to bring a project to fruition, it is truly “Time to Plan“.

When the world recovers from the current economic conditions what will the “Headlines” read?  What will be some of the back story to the conditions at the time recovery is reported?  If anyone really had the answers to these questions I am sure we would start to see the articles today.

Hopefully these stories will be full of lessons learned and checks and balances that will inhibit the chances of it happening again.  Hopefully the stories will talk of a new economy based on sustainable financial mechanisms and moderated growth.

What these stories will certainly contain is reports of lower costs of construction and examples of forward thinking businesses who took advantage of the economic adjustments and the lower costs of construction resulting from the downturn.  As recent as 6 months ago the cost of construction was still expanding and the refrain being heard was “How can this continue?”, “How can the industry continue to absorb the double digit increase in material costs?”.  The answer to these questions is now being realized.  It could not be sustained.

Please see the original article “Index: Construction costs continue to drop” that motivated these thoughts.

- Todd Heirls

The orignal article can be seen by clicking: “Wash. Publisher Moves to New Digs”

Skagit Valley Publishing Office Entrance

• What is the long term strategy?

• What is the vision for the company’s position at the end of this financial storm?

• Tough question: Do you expect to be on point for the rebound that will come?

Nobody knows for certain exactly when this recession will recede, and the economic engines will fire up again.  Optimists have indicated the 3^rd quarter of 2009 or earlier, while others believe that it could be another year or more pushing into 2010.  If our companies want to be on deck for the ebb in which the tide turns, whether its 6 months or 18 months from now, the Time to Plan projects is now.  As dark and gloomy as recent media reports have been, there is no doubt that there will be an economic recovery.  We all want to be in the best place to take advantage of the market when the funds start to flow freely again.

Update: See recent article “Intel to Spend Heavily on U.S. Plants, Calls on Others to Invest” from the Wall Street Journal “... follow (their) it’s strategy of investing during the down turn“

There are numerous sub-topics and side debates to this overarching issue, the main point to make is that the current conditions actually presents a golden opportunity for positioning a company and business model by planning capital projects now.  This is parallel with Warren Buffet’s attitudes about current markets and economic timings. A quote from a NY Times article by Warren Buffet published October 16, 2008:

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. ….. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.“

How do the current conditions of the economy present a window of opportunity?  The major costs for a new facility project, perhaps obviously, are the site and the building.  With economic conditions as they stand, the first costs for both of the above have never been lower and most likely will continue to shrink.

• Real Estate:  The prospect to negotiate a favorable lease or purchase of a property has never been better.  The market is extremely motivated and great values abound.

• Financials:  Interest rates are at historic lows.  And despite the fallout on Wall Street, there are plenty of banks open for business with cash available to lend to qualified interests.

• Material Costs:  The costs of building and construction materials have ceased to escalate and are moving lower.  They currently are lower than 2 years ago.  For example: “$1.75 Price of an 8-foot stud, the lowest since 1990“

• Fuel and Energy: The depressed market value of crude oil is a bonus too.  Not only does it reduce the associated transportation costs of building materials, it also factors into the construction process and resulting cost.

• Construction Companies:  There are many companies fortunate to be currently involved with large projects that came off the drawing boards years ago.  Just the same, the firm positioned for 2010 is considering now what project they will have in backlog.  Other construction firms are eager to get involved with a “shovel-ready” project next month.

• Architectural and Engineering Firms: A recent AIA study indicated that the billing index for architectural firms was reported at 34.7 in October 2008, 15 points below the median which reflects no change.  Firms providing planning, design and engineering are eager to provide extremely competitive proposals for projects.  ArcWest Architects included!

Timing is everything:  From the moments a capital project may be conceived in the board room to the point that it’s a built reality in operation typically requires no less than 12 to 18 months.  If we conservatively anticipate that the economy will have moved past the recession one year from now, one might deduce that we are already behind the eight ball.

Our optimistic view is that the 2009 glass is half full, and the time to plan is now!

- Robin Adams

Please contact ArcWest Architects to learn more about how we can assist you.

New Facility Open

ArcWest believes the new facility is a “great” building!  It is always a pleasure to work with Pioneer and each of their newspapers.  Stedem Wood and his management team were actively involved in every aspect of design and implementation.

Stedem Wood and Tom Blumenshine overlooking the new Press Installation

Please see the news brief at the Pioneer Newspapers website: Open for business

Big Thank you, from ArcWest Architects

See excerpt below from the online article “Sustainable Solutions: The Impact of the Green Building Movement” by Wes McDaniel.

A more recent article “Green (Ware) House Effect“, by Rick Underwood, shares similar thoughts that affirms the thinking above there are simple considerations and “easy fixes” to reducing operating costs for an existing building or facility.  Further …. There are other great points in the article such as the strategic planning for the selected location of a warehouse if properly thought through will reduce costs and reduce the companies carbon footprint.  Being central in your supply chain, receiving and ditribution , makes sense and saves money.

- Robin Adams

“Seven Simple Ways to Reduce Facility Operating Costs

1. Replace fluorescent 40W-T12 lamps with 32W-T8 lamps and electronic ballasts.
   Not only are T8 lamps with electronic ballasts more energy-efficient than the standard T12 lamps and ballasts, they also provide better quality lighting due to a higher color rendering index.
2. Replace incandescent bulbs with energy-efficient compact fluorescent lamps.
   Compact fluorescent lamps use approximately 1/3 to 1/4 of the wattage of incandescent bulbs while maintaining the same lighting levels. Furthermore, compact fluorescents have a lifetime of up to 10,000 hours compared with 1,000 hours for most incandescent bulbs.
3. Replace incandescent or fluorescent exit sign lights with LEDs.
   The law requires that exit signs run continuously. Light emitting diodes (LEDs) operate on about 2W compared with 40W incandescent bulbs and 10-15W fluorescent lamps.
4. Use occupancy sensors in areas where lighting is typically left on when no one is there.
   Occupancy sensors ensure that the lights are turned off when an area is not occupied. The energy savings from occupancy sensors depends on the total hours that the lights are normally on and the percentage of hours that they can be turned off.
5. Install programmable thermostats.
   Programmable thermostats can be used to schedule the use of your heating, ventilating, and air-conditioning (HVAC) equipment. They set up or set back temperatures when the facility is not being used. A reasonable and often-used estimate of savings is 1 percent savings for each degree of an eight-hour setback.
6. As motors burn out, replace them with energy-efficient ones.
   Standard motors use a lot of energy to operate and, by increasing efficiency just a few percentage points, you can save a significant amount of money in the course of a year, especially if the motor operates for long durations of time.
7. Instead of rewinding existing motors, replace them with energy-efficient ones.
   Rewinding motors can lower efficiency and increase operating costs. They also may not last as long as newer motors. Therefore, when the motor is less than 25 hp, it is generally better to replace the motor with a high-efficiency equivalent rather than rewind it.”