Annual Report 2003
Page 3
In the late 1990s, industry leaders challenged the New York Building Congress to address a lack of accurate research on the breadth and impact of the building industry as well as the City’s long-term development and infrastructure needs. Accordingly, the Building Congress and its affiliate, the New York Building Foundation, initiated a program bringing industry watchers and economic consultants together to analyze building trends, forecast construction activity and pinpoint critical issues concerning future development.
In 2002, that program reached its full potential as the Building Congress researched and released three important reports, all of which touched upon the industry’s health as well as the future well-being of the City’s economy.
Equally important, the reports were issued at a time of growing deficits and economic weakness when, historically, budgets for capital improvements and infrastructure maintenance have suffered. The reports – and the conversations they spark – are intended to remind public and private sector decision makers of the construction industry’s impact on development and job creation as well as the devastating effects of infrastructure neglect on the City’s long-term growth and prosperity.
Development Report
Building for Growth: A Development Strategy for New York City’s Long-Term Prosperity was created to serve as a draft for discussion among policy makers. In essence, it calls
for a comprehensive approach to the City’s development and infrastructure needs.
The report asserts that New York City needs a long-term, 20 to 25-year physical development strategy. Such long-range vision would help frame deliberations surrounding the revitalization of Lower Manhattan and encourage public officials to focus on the City’s overall needs, even as they grapple with budget shortfalls.
Construction Outlook
The third installment of Construction Outlook, an analysis of capital budgets, private sector development plans and other indicators, found that construction spending and employment held steady last year and forecasts similar levels over the next two to three years. The report cautions, however, that there is considerable uncertainty given current market forces and efforts to bridge State and City budget gaps.
The Building Congress and its consultants are constantly monitoring the planning and financing environment, and expect to release an updated forecast and analysis before the end of 2003.
Electricity Outlook
The Building Congress and its Energy Committee took a lead role in a broad coalition that in 2002 produced Electricity Outlook – A Call to Action, an in-depth analysis of New York City’s long-term electricity supply. The report called for the addition of 2,000 to 3,000 MW of in-city electric capacity by 2006, as a means of preventing future power disruptions and large price spikes.
Electricity Outlook noted that while 17 electric-generating plants have been proposed for the City by a number of private companies, none of these facilities is currently under construction, and few are expected to be in service by 2006. The long regulatory process is at least partly to blame for delays, but unfavorable conditions for financing are adding to concerns that even plants with the necessary approvals may not be built. In addition to increasing the City’s electric capacity, the coalition recommended cleaning up existing power plants; enhancing energy efficiency measures; and increasing the use of clean distributed generation technologies.
In 2003, the Building Congress program of research and analysis continues with reports on the impact of insurance issues on the industry and an analysis of the City’s overall capital investment process.
To view any Building Congress publication, visit www.buildingcongress.com or call 212-481-9230 for a copy.
