New Jersey Public/Private Construction
Forecasts Show Only Minor Decline
Public and private construction in New Jersey over the next two years is projected at $20.1 billion despite the current economic downturn and the aftermath of terrorism.
Those were the figures provided by some 25 representatives of public and private agencies and companies today at the 17th annual Construction Forecast Seminar of the New Jersey Alliance for Action. See Chart
The projections represented a drop of $332 million or 1.6 percent from the record high two-year estimates of $20.4 billion that were made during last year’s seminar.
The breakdown of the estimates made today were nearly $10.5 billion for 2002 and $9.6 billion for 2003.
Alliance for Action President Philip K. Beachem said: "I’m thrilled. I really expected the figures to be much worse."
Beachem commented that "although private construction forecasts showed some declines, public works projects are helping to carry us through in the construction industry so vital to New Jersey’s economy. " He cautioned, however, that funding for public works activity is uncertain and that New Jersey faces the challenge of finding new and stable revenues for capital expansion and improvements.
In an optimistic vein, Beachem stressed that the $20.1 billion estimates for 2002-2003 do not include federal economic stimulus dollars expected from Washington.
Among the major construction estimates made today were:
- The New Jersey Casino Reinvestment Authority at $4.3 billion over two years for casino expansion and construction, community economic development projects, housing and urban initiatives.
- New Jersey Department of Education at $2.6 billion for school construction and improvements in both Abbott and non-Abbott districts.
- The Port Authority of New York and New Jersey at $1.6 billion.
- The Construction Roundtable of New Jersey, including major pharmaceutical and chemical companies, at $1.5 billion, which actually represented a decline of nearly $200 million from last year’s estimate.
- The National Association of Industrial and Office Properties reported the biggest projected drop at $1.3 billion, about half of what it forecast at last year’s seminar.
- New Jersey private electric, gas and water utilities at $1.4 billion, compared to nearly $2.2 billion projected last year.
- The New Jersey Economic Development Authority forecast nearly $1.3 billion in construction financing over 2002-2003.
- The New York District of the U.S. Army Corps of Engineers estimated spending nearly $1.8 billion on construction projects.
Seminar Chairman Stephen Kukan, Senior Vice President of the Advance Realty Group, said the figures presented today in spite of the current economic conditions demonstrate that "New Jersey and the region continue to be an economic powerhouse." He declared that the two key factors which keep New Jersey’s economy going are the state’s access to markets and labor force.
