Alaska Construction Spending Forecast Down Slightly for 2015
ANCHORAGE, Alaska—With a total value of construction spending reaching $8.5 billion for calendar year 2015, Alaska’s construction will be down about 3 percent from $9.2 billion in 2014, according to Scott Goldsmith of the University of Alaska’s Institute of Social and Economic Research (ISER), author of the report.
Mouhcine Guettabi, of ISER, presented the report at an Associated General Contractors of Alaska (AGC)/Construction Industry Progress Fund (CIPF) breakfast Thursday along with John MacKinnon, executive director of AGC.
Wage and salary employment in the construction industry will decline slightly in 2015, while oil and gas sector spending will fall 2percent to $3.8 billion, down 2 percent from 2014.
Private spending, excluding oil and gas, will be about $1.7 billion, down from $2 billion a year ago. Construction spending is expected to remain strong in spite of the drop in oil prices in the past six months.
John MacKinnon said, “Our annual Forecast underscores the importance of the construction industry in Alaska. It’s not just about jobs and the economic value of the current projects—the one time expenditures. It’s really about how what we build becomes a part of the ongoing economy of Alaska for year and often, generations.”
Joe Beedle, president and CEO of Northrim Bank, noted, “The construction industry is a vital component of our economy and we are proud to continue to sponsor the Construction Forecast. Research like this provides valuable insights into Alaska’s economy and we believe sharing this information with our customers and communities is critical to their success. This year’s forecast gives us another reason for optimism as we navigate an uncertain future in our state.”
The report was compiled and written by Goldsmith and Pamela Cravez of the UAA Institute of Social and Economic Research (ISER), and is available to download from ISER's website.
The construction trade is Alaska’s third largest industry paying the second highest wages. Accounting for 20 percent of the Alaska’s total economy, the industry reflects the pulse of the economy.