Economic Indicator Shows Early Signs of Upswing

The Washington, D.C.-based American Institute of Architects (AIA) has released a report that may spell good news for church construction projects. The Architecture Billings Index (ABI) was up more than eight points in March. As a leading indicator of construction activity, the ABI reflects the approximate 9-12 month lag time between architecture billings and construction spending. The AIA reports that the March ABI rating was 43.7, up from the 35.3 mark in February.

This was the first time since September 2008 that the index was above 40, but the score still indicates an overall decline in demand for design services—any score above 50 indicates an increase in billings, according to the AIA. The new projects inquiry score, however, was 56.6.

“This news should be viewed with cautious optimism,” reports AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “The fact that inquiries for new projects increased is encouraging, but it will likely be a few months before we see an improvement in overall billings.”

The ABI is derived from a monthly “Work-on-the-Boards” survey, produced by the AIA Economics & Market Research Group. For more information, visit www.aia.org/press/releases/AIAB079570.

www.aia.org

Cogun Inc. Adds Three New Team Members

Jeff Kempton, Peter Vivaldi and Richard Chancy recently joined Cogun Inc.

North Lima, Ohio-based Cogun Inc., a church design and construction firm, announces the hiring of three new team members who will oversee the development and consulting of current and potential customers. The new team members include Jeff Kempton, development manager for the upper Midwest region; Peter Vivaldi, development manager for the Florida region; and Richard Chancy, project consultant for the Southeast region.

Kempton and Vivaldi will focus on making the first connection with churches when Cogun is contacted for assistance. They will also be responsible for filtering questions and concerns about the beginning stages of the planning and building process. Chancy will consult with churches to determine their facility needs and, Cogun reports, enhance their growing ministries with appropriate building expansion and development.

“We are excited about the addition of Jeff, Peter and Richard to our consulting team,” says Bill Couchenour, president of Cogun. “… together, they will enable us to broaden our ability to serve churches with facility needs.”

Prior to joining Cogun, Kempton worked for church seating solutions provider Sauder Manufacturing Co. in Toledo, Ohio. Vivaldi worked for Corcoran, a church builder in Florida that provides church design and construction services. And Chancy came from InJoy, a Duluth, Ga.-based international leadership development company where he was executive director of sales.

For more information visit www.cogun.com.

www.cogun.com

LiftPod to be Given Away in Honor of National Safety Month

The LiftPod, ideal for church facilities managers, is a portable aerial work platform from JLG that lets workers use both hands to get the job done. Photo courtesy of LiftPod.

To mark June as National Safety Month, McConnellsburg, Pa.’s JLG, maker of the LiftPod portable aerial work platform, is holding a contest at http://www.liftpod.com to award one free LiftPod. The contest is open to any worker or manager who uses a ladder or elevated work platform for jobs done at heights. The contest begins on June 1, 2009, and runs through June 30, 2009. On the LiftPod website, JLG will also be sharing its market research on safety preferences in the workplace, developed by the company prior to its U.S. launch of LiftPod.

The LiftPod was designed as a replacement for the ladder, providing workers with a 14-foot working height, the ability to work with both hands, and the convenience of operation using a common 18-volt drill or optional power pack. It is reportedly about one-fourth the cost and weight of entry-level aerial work platforms.

For more information visit www.liftpod.com.

www.liftpod.com

Research Discloses Most Preferred Projector and Flat Screen Brands in American Churches

According to respondents in Odessa, Fla.-based TFC Info’s latest market research study, more than half of U.S. churches are looking to purchase and expand upon their projection and video display systems. There are more than 350,000 churches and houses of worship in the United States, many of them already heavy users of audiovisual equipment.

Of those actively seeking projectors and flat screens, some brands repeatedly come to the forefront. Eiki, Epson, Panasonic, Sanyo, Sharp and Sony, for instance, are the most considered projector brands, while LG, Panasonic, Samsung, Sharp, Sony and Vizio are the top flat screen display brands considered. The results of the research, such as these brand rankings, are extensively analyzed and dissected by church size and geographic location, allowing readers to compare and contrast similarities and differences seen in churches across the country.

“The house of worship market continues to grow in all segments. Larger churches are buying more projectors and displays than in the past, and they are being used for a wider number of purposes including digital signage, satellite venues and portable applications. Smaller churches are also becoming more technically sophisticated as display technologies become more affordable and easier to use,” states Brian Blackmore, editor-in-chief and publisher of Church Production and Worship Facilities magazines.

The TFC Info research shows that more than half of all respondents state that brand is “extremely” or “very” important to them in their purchasing process. This indicates that manufacturers’ efforts to solidify the brand image of their product line to the house of worship marketplace can have a significant impact. For more information on the project and flat panel research study, contact Tanya Lippke, manager of survey market research, at (207) 783-0055 or .(JavaScript must be enabled to view this email address).

www.tfcinfo.com  |  www.churchproduction.com  |  www.worshipfacilities.com

Keeping a Pulse on the Current Lending Climate: A Q&A

Scott Rolfs, managing director of the church and school financing division, Ziegler Capital Markets, Chicago

Worship Facilities Newsbyte sought out Scott Rolfs, managing director of the church and school financing division at Chicago-based Ziegler Capital Markets, to find out if churches looking to borrow might yet begin to breathe a sigh of relief. The verdict? Read on.

Newsbyte: The AIA has just reported in its latest Architectural Billings Index report that construction activity was up more than eight points in March from where it had been in February … news like this is heartening for everyone, including church pastors and building committee members who are looking to build. What does this mean in terms of getting a loan? Might we expect to see more churches get financing for building projects and renovations in the near future?
Rolfs: The church lending climate is still challenging. Projects are getting funded, but at a slower pace. For many churches the loan is the final step of the building process. The area where the pipeline is a bit clogged right now relates to capital campaigns. For most churches you need to have a successful capital campaign to obtain financing and successfully launch a project. A number of churches have deferred their campaigns until the fall of 2009 in order to let the economy settle down a bit. We should see things pick up in the second half. Despite some of the sensationalistic headlines in the secular media, churches are actually weathering this financial storm better than most for-profit companies.



Newsbyte: Of the churches you're currently working with that are building, are there a few common denominator things that they're done right—that have either helped keep their balance sheets strong or have somewhat buffered them from economic conditions?
Rolfs: The churches that are weathering the storm the best are those that had spending discipline in place before the downturn. Ministries that lived month to month and did not have detailed budgets have been the hardest hit. Strong lay person input is also very important. Churches that relied solely on the senior pastor for spending decisions are not receiving the type of real-time feedback as to the financial situation of their membership. We'd encourage smaller churches and churches where the pastor is the primary decision maker to create an advisory board of committed members to help with planning and spending decisions. This not only brings real-world feedback into the process, but also gives the member a sense of place as a stakeholder with the ministry and makes them more committed to the organization.

Newsbyte: What are some words of wisdom for church schools? One could speculate that tuition has been down in private Christian schools and that they may have some hurdles of their own.
Rolfs: Many Christian schools we dialogue with are trying very hard to hold their pricing on tuition for the fall while at the same time maintaining their staff. While this will be a challenging year, we'd encourage ministries to do what they can to weather this storm. The long-run outlook for Christian education is still very good as they offer a unique and important product. What you may see this fall are some larger class sizes as some schools are not able to fund as many different classes per grade as they have in the past.

Newsbyte: Are you seeing churches requesting funding for multi-sites or video venues, as offshoots of the main church campus? What trends are you seeing as churches grapple with growth and the constraints of the current economy?
Rolfs: The multi-site concept continues to be popular among larger ministries that realize it may not be the best strategic decision to increase the size of the current campus but to branch out. The price of gas is one factor that helped really drive multi-site last summer. When you had $4 to $4.50 a gallon gas, the idea of multiple sites that are easy to get to had a natural appeal. Even though gas prices have fallen, we still see transportation costs as a significant factor in driving multi-site for the long-run.

Newsbyte: Is there anything else you'd like to add that may be helpful or insightful for church leaders?
Rolfs: Just like businesses and individuals, churches are going to need to re-adjust to the realities of the new world. [In] the past decade the U.S. economy was driven greatly by debt financed activities and credit was cheap and easy to obtain. It is quite possible those conditions will not exist in the next decade. So ministries will need to adjust their expectations.

www.ziegler.com/investment_banking/church_and_schools