Analysis of Stimulus Data Shows Program Delivering More Construction Jobs than Initially Estimated, Helping Boost Transportation Spending, Contractors Group Notes
Stimulus funded 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 non-transportation projects funded in the initial package.
"The 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," said Ken 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 economy."
Simonson noted that new federal reports show the $20.6 billion dollars worth of stimulus highway projects initiated over the past twelve months have saved or created nearly 280,000 direct construction jobs. That amounts to 15,000 jobs per billion dollars invested, well above pre-stimulus estimates that every billion invested in infrastructure projects would create 9,700 direct construction jobs.
The 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.
Simonson 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 construction jobs.
Simonson 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," Simonson said. "That may not make for great headlines, but it is welcome news for construction workers anxious to continue receiving paychecks."
Related Stories
| Nov 7, 2014
World's best new skyscraper: Sydney's vegetated One Central Park honored by CTBUH
The Jean Nouvel-designed tower tops the list of 88 entries in the 13th annual Council on Tall Buildings and Urban Habitat Awards.
| Nov 7, 2014
NORD Architects releases renderings for Marine Education Center in Sweden
The education center will be set in a landscape that includes small ponds and plantings intended to mimic an assortment of marine ecologies and create “an engaging learning landscape” for visitors to experience nature hands-on.
Sponsored | | Nov 6, 2014
To build your strongest team, don't hire clones
To attract and keep talented individuals who are different than you, Entrepreneur magazine suggests a few foundational principles. SPONSORED CONTENT
| Nov 6, 2014
Hines planning tall wood office building in Minneapolis
The Houston-based developer is planning a seven-story wood-framed office building in Minneapolis’ North Loop that will respect the neighborhood’s historic warehouse district look.
| Nov 6, 2014
Studio Gang Architects will convert power plant into college recreation center
The century-old power plant will be converted into a recreation facility with a coffee shop, lounges, club rooms, a conference center, lecture hall, and theater, according to designboom.
Sponsored | | Nov 6, 2014
Drilling deeper: On the ground insights from the Marcellus Shale region
The Marcellus Shale region is expansive, stretching from upstate New York through Pennsylvania to West Virginia. It’s an exciting time to live and work in the area. SPONSORED CONTENT
| Nov 5, 2014
AEC firms leverage custom scripts to bridge the ‘BIM language gap'
Without a common language linking BIM/VDC software platforms, firms seek out interoperability solutions to assist with the data transfer between design tools.
| Nov 5, 2014
Survey: More than 75% of workload takes place without face-to-face interactions
With the rise of technology, much of the workday—even the most productive morning hours—is spent corresponding via email or conference call, according to a recent survey of corporate workers by Mancini•Duffy.
| Nov 5, 2014
The architects behind George Lucas' planned Chicago museum unveil 'futuristic pyramid'
Preliminary designs for the $300 million George Lucas Museum of Narrative Art have been unveiled, and it looks like a futuristic, curvy pyramid.
Sponsored | | Nov 5, 2014
How to maximize affordability and sustainability through all-wood podiums
Wood podium construction takes an age-old material and moves it into the 21st century.
