Alaska Construction Spending Forecast down 18% for 2016
Dropping to $7.3 billion
Anchorage, AK. -- With a total value of construction spending dropping to $7.3 billion in 2016 from $8.5 billion in 2015, Alaska's construction spending will be down 18% according to Scott Goldsmith of the University of Alaska, Anchorage's Institute of Social and Economic Research (ISER), author of the report.
Goldsmith, along with Associated General Contractors of Alaska executive director John MacKinnon, presented the report today for the Construction Industry Progress Fund (CIPF) at the Alaska Airlines Center at the UAA campus.
Goldsmith noted the oil and gas sector spending will fall 25% from a record level of $4.2 billion last year. All other construction spending will be at $4.2 billion down from $4.7 billion last year. Private spending excluding oil and gas will be about $1.4 billion down 24% while public spending will decline 6% to $2.8 billion from $2.9 billion.
Employment in the construction industry which increased an estimated 6% last year to almost 18,000, will decline slightly in 2016.
CIPF rolled out the 14th annual Construction Spending Forecast with an 8-page booklet for a look at both public and privates construction spending for the year ahead.
John MacKinnon said, "Our annual Forecast continues to underscore the importance of the construction industry in Alaska. The construction industry reflects the pulse of the economy. What we build today becomes a part of the economy--every project pays a dividend for years to come."
CIPF Chairman Michael I. Shaw, of Roger Hickel Contracting added, "It is imperative for our industry to continue to be a major force in the Alaska economy and build for the future, even during hard times."
The construction trade is Alaska's third largest industry paying the second highest wages and accounts for 20% of Alaska's total economy.