An analysis by the Associated General Contractors of America of federal data found that more contractors are likely to perform stimulus-funded work this year as work starts on many of the nontransportation projects funded in the initial package.
infrastructure projects are saving and creating more direct construction jobs
than initially estimated, according to a new analysis of federal data released
today by the Associated General Contractors of America. The analysis also found
that more contractors are likely to perform stimulus-funded work this year as
work starts on many of the nontransportation projects funded in the initial
stimulus is one of the very few bright spots the construction industry
experienced last year and is one of the few hopes keeping it going in 2010,”
saidKen Simonson, the association’s chief
economist. “The stimulus is saving construction jobs, driving demand for new
equipment and delivering better and more efficient infrastructure for our
noted that new federal reports show the $20.6 billion worth of stimulus highway
projects initiated over the past 12 months have saved or created nearly 280,000
direct construction jobs. That amounts to 15,000 jobs per billion dollars
invested, well above prestimulus estimates that every billion invested in
infrastructure projects would create 9,700 direct construction jobs.
economist added that heavy and civil engineering construction employment was
stable last month even as total construction employment declined by 75,000.
Meanwhile, highway and road construction was one of the only areas to see an
increase in spending last year even as total construction spending fell by $100
billion. The two figures are a clear sign the stimulus is having a significant,
and stabilizing, impact on the industry, Simonson noted.
cited examples like Pittsburgh’s Golden Triangle Construction Co. as an
indication of the benefits of investing in infrastructure. The company is
hiring two new engineers and over 100 employees this spring just to perform $24
million worth of stimulus-funded projects this year.
It also is ordering new construction
equipment to perform the work from Ripon, California-based Guntert and
Zimmerman. As a result, the equipment maker saved 40 jobs on its assembly line.
And thanks to its stimulus work, Golden Triangle decided to complete
construction of its delayed headquarters, providing even more local
cautioned, however, that overall declines in construction activity have, and
likely will continue to overshadow the benefits of the stimulus. “The stimulus
will keep a bad situation from deteriorating further,” he said. “That may not
make for great headlines, but it is welcome news for construction workers
anxious to continue receiving paychecks.”
More Construction Firms Likely To Perform Stimulus-Funded Work In 2010
February 16, 2010