Commercial Observer
Carlo A. Scissura
1.26.21
New York has experienced devastation, loss and hardship since last March, due to a crisis unlike any in our lifetime. It has been one of the country’s hardest-hit areas by the coronavirus, and the impacts will affect our health, economy and livelihoods for years to come.
Right now, with 2020 behind us, a new administration in the White House and the COVID-19 vaccine representing a shining light at the end of the tunnel, many are asking how we’re going to recover and rebuild – to that, I say, we’re going to rebuild New York by building New York.
At the beginning of 2020, construction in the city was on track for another tremendous year of growth. Unfortunately, a significant percentage of the city’s workforce was laid off in the spring and early summer and non-essential construction was halted at the end of March as the virus ravaged the region. Since New York’s non-essential construction ban was lifted on June 8th, activity has resumed, bringing people safely back to work and advancing economic recovery.
The New York Building Congress’ annual Construction Outlook report captured in raw numbers the economic shock caused by the virus, but it also points to areas of resiliency and a pathway forward to boost recovery: investment in infrastructure.
The building industry will keep people employed in the midst of and after the pandemic by creating job opportunities. The non-essential construction freeze is projected to result in the decline of New York City construction jobs to 128,200 in 2020 – slightly below employment levels in 2014 – but as project spending gets back on track in the coming months, employment numbers will bounce back in 2021 and 2022 to 136,650 and 140,200 jobs, respectively. While the building industry has been impacted by COVID-19, New York City construction spending in 2020 is forecasted to exceed spending from eight of the past 10 years. Total construction spending between 2020 and 2022 is expected to reach $168.5 billion.
The past 12 months have seen the unveiling and progression of monumental construction and development projects that symbolize the greatness of New York City and the resilience of the building industry. The incredible Moynihan Train Hall, which will improve the commutes of countless people, opened to passengers earlier this month. In September, SL Green officially opened One Vanderbilt, the second-tallest office building in the five boroughs, re-energizing the Manhattan neighborhood of Midtown East. AirTrain LGA has taken significant strides toward coming to fruition, promising a mass transit rail link to LaGuardia that will provide fast and dependable service between the airport and Midtown. In my home borough of Brooklyn, Lendlease is planning on redeveloping a full block of waterfront land in Greenpoint into residential housing, demonstrating support and investment in the future of New York. We’ve also seen movement on the rezonings of SoHo and Gowanus, which would create new housing, including affordable housing, support economic recovery by increasing commercial opportunities and improve public or cultural spaces. This is evidence that the building industry, as it always has in the past, will carry New York City through times of uncertainty and will continue to help pave our path forward.
As the administration of President Joe Biden begins work on rebuilding the nation, Senator Chuck Schumer is elected as Senate Majority Leader and Governor Andrew Cuomo has unveiled his $306 billion infrastructure plan, now is the time for substantial investment in our built environment and a pro-development mentality. An aggressive and comprehensive federal infrastructure plan that provides direct funding to state and local governments to allocate to critical public works projects must be a top priority. A plan of this scale will create jobs and address the needs of our severely strained infrastructure networks. The City must also develop and pass comprehensive rezoning strategies throughout the five boroughs. Successful rezonings promote the growth of livable neighborhoods, foster jobs and economic development, invest in essential services and create housing for all income levels.
From affordable housing and schools to hospitals and public transit, our industry is committed to designing and building projects that help our neighbors get back to work and support our communities. The building industry is woven into the fabric of our city, and working together, we will build a better New York for all.
