Despite economic woes, 2008 was record year for nyc construction industry
Overall Spending, Employment and Housing Production Reached New Heights;
Signs Point to Declines in 2009
According to a New York Building Congress analysis, overall construction spending for 2008 reached a record $31.8 billion, higher than both 2007, when spending reached $30.5 billion, and 2006, when spending reached $26.6 billion.
At $15.0 billion, public sector projects accounted for approximately half of all construction spending for the year. Overall, government spending, which includes expenditures by the City, State and Federal governments, as well as regional bodies such as the Port Authority of New York & New Jersey and the Metropolitan Transportation Authority, was down slightly from the $15.6 billion reached in 2007. That marks the first year over year decline since 2003.
Non-residential construction, including office space, institutional development and sports/entertainment venues, reached $10.9 billion, up from $8.9 billion last year. This level of spending is more than triple the amount of five years ago when annual non-residential spending stood at $3.1 billion.
Spending on residential construction declined slightly, from $6.1 billion in 2007 to $5.9 billion in 2008. When measured by units produced, however, 2008 was another banner year in which dwelling unit construction rose to 33,911, up from 31,902 in 2007. This was the fourth consecutive year in which residential production topped 30,000 units.
Construction employment for the year reached 129,900, up from 127,000 in 2007. This is the fourth consecutive year of industry job growth and the 11th straight year with employment levels of greater than 100,000 men and women.
"Amidst the current economic turmoil, it may already seem like ancient history, however, 2008 was another banner year for the construction industry," said Building Congress President Richard T. Anderson. "Looking at the numbers, we reached heights in spending, employment and housing construction that we haven't reached in decades, if ever."
"Unfortunately," Mr. Anderson continued, "most signs are pointing down for the current year. As we have reported in this Construction Outlook series, residential permits and monthly employment have been on a steady decline since late last year. In addition, some major sources of spending and employment, such as new stadiums for the Yankees and Mets, and the Bank of America tower, are essentially complete, while many new projects are being canceled or delayed."
The Building Congress has identified 17 previously-announced projects that are now delayed, including a number of luxury residential buildings, portions of the World Trade Center and Atlantic Yards projects, and a host of planned office developments stretching across Midtown Manhattan from Eighth Avenue to the East River.
