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New York Building Congress Forecasts Annual Construction Spending in the City to Exceed $30 billion till 2015

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By Indranil Bhattacharjee
September 10, 2014

In a recently released report, New York Building Congress suggests that the annual construction spending in the city during 2013-2015 will match the figures achieved in the mid-2000s. New York Building Congress has prepared the report titled New York City Construction Outlook 2013-2015 in conjunction with the New York Building Foundation.

New York City, September 10, 2014

Annual construction spending in New York City is all set to cross $30B throughout the phase 2013-2015. This forecast has been made by New York Building Congress in their recently released analysis report ‘New York City Construction Outlook 2013-2015.’According to the report, this favorable environment in the city’s construction market has been caused by the ongoing infrastructure projects undertaken by the government, resurgence in New York’s residential market, and anticipation of progress in the city’s mega-development sites.        

According to the report, construction spending for the year 2013 is expected to reach $31.5 billion, 14% higher compared to 2012. This figure is expected to be even higher for 2014 and 2015, with forecasts of   $33.4 billion and $37.0 billion respectively.

Richard T. Anderson, the President of New York Building Congress says, “New York City is once again demonstrating its remarkable resiliency. Just five years after the worst downturn since the Great Depression, the City’s construction industry finds itself on the brink of yet another building boom.” 

The Building Congress also forecasts that a total number of 123,400 and 129,700 new construction jobs will be created in the years 2014 and 2015, respectively. If realized, these benchmarks will represent the second and third-highest employment generation since the year 1995. 

New York’s construction spending in the residential sector doubled in three years before 2012.The Building Congress predicts that the same surge will continue in the three years after 2012. From $5.3 billion in the year 2012, the figure is expected to touch $10.7 billion by the end of 2015. Similar trends have been forecasted by New York Building Congress for non-residential construction in New York.

The report, however, predicts a certain degree of uncertainly with regards to government spending between 2013 and 2015. According to the Building Congress, election of a new mayor, changes in leadership positions of New York City Council, and priority shifting may have a negative impact on the capital budget of the city.  

Frank J. Sciame, the Chairman of Building Foundation says, “In the years immediately following the 2008 financial meltdown, New York City’s building industry was heavily reliant on public sector work. In 2009 and 2010, government projects accounted for approximately 58 percent of all construction spending. However, by 2015, government work is expected to account for just 35 percent of construction spending.  While this is good news for the private sector outlook, it is troubling to see government spending so far off previous highs.”