Alaska Construction Forecast Down 10 percent for 2017
$6.5 billion Alaska construction spending predicted
ANCHORAGE, Alaska, January 26, 2017 - Alaska construction spending will be $6.5 billion for 2017, down 10 percent from the previous year according to Scott Goldsmith of the University of Alaska Anchorage's Institute of Social and Economic Research (ISER). It was $7.1 billion in 2016.
Goldsmith, along with Associated General Contractors of Alaska (AGC) Executive Director John MacKinnon, presented the report today for the Construction Industry Progress Fund (CIPF) at the Lakeside Hotel in Anchorage in front of construction industry owners and AGC members.
Goldsmith noted oil and gas construction spending will fall 15 percent to $2.4 billion from $2.9 billion a year ago. Private spending will be about $1.6 billion, up 2 percent from a yar ago, while public spending will decline 12 percent to $2.5 billion.
Wage and salary employment in the construction industry, which dropped by 8.5 percent in 2016, will drop another 7.4 percent in 2017 to 15,000, the lowest in a decade.
Goldsmith noted the Alaska economy slipped into a recession in 2016 that is expected to continue at least through 2017.
CIPF rolled out the Construction Industry Spending Forecast to underscore the importance of the construction industry in the 49th state.
The construction trade is Alaska's third largest industry, paying the second highest wages, employing more than 16,000 workers and contributing $6.5 billion to Alaska's economy.