a:29:{s:9:"weblog_id";s:1:"2";s:8:"entry_id";s:0:"";s:6:"sticky";s:0:"";s:14:"allow_comments";s:1:"n";s:16:"allow_trackbacks";s:1:"n";s:10:"entry_date";s:19:"2009-03-02 08:42 PM";s:15:"expiration_date";s:0:"";s:23:"comment_expiration_date";s:0:"";s:8:"category";a:2:{i:0;s:2:"16";i:1;s:2:"43";}s:9:"author_id";s:1:"2";s:6:"status";s:4:"open";s:14:"trackback_urls";s:0:"";s:18:"versioning_enabled";s:1:"y";s:5:"title";s:71:"Advisors Say Stimulus Helps, But Rough Times Still Ahead for Commercial";s:9:"url_title";s:70:"advisors_say_stimulus_helps_but_rough_times_still_ahead_for_commercial";s:6:"submit";s:6:"Submit";s:10:"field_id_5";s:71:"Advisors Say Stimulus Helps, But Rough Times Still Ahead for Commercial";s:10:"field_ft_5";s:4:"none";s:10:"field_id_9";s:274:"Public works will pick up some of the slack in a non-residential construction market gone completely south. But commercial construction may continue to suffer for some time to come, economists told those attending a New York conference on the ailing construction industry.

";s:10:"field_ft_9";s:4:"none";s:11:"field_id_13";s:0:"";s:10:"field_id_7";s:36:"public works, conference, economists";s:10:"field_ft_7";s:4:"none";s:10:"field_id_8";s:4001:"<p>Public works will pick up some of the slack in a non-residential construction market gone completely south. But commercial construction may continue to suffer for some time to come, economists told those attending a New York conference on the ailing construction industry.</p>
<p>&ldquo;The stimulus bill will certainly be shaping construction this
year,&rdquo; said Robert Murray, vice president of economic affairs at
McGraw-Hill Construction. As a result, the public works sector will be
the &ldquo;saving grace of construction&rdquo; in 2009 and 2010, Murray said.
Murray spoke at the McGraw-Hill &ldquo;Managing Construction&rsquo;s Financial
Crisis&rdquo; Conference in New York Feb. 24-25.<br /> <br /> The conference
focused on navigating the current market, new visions pertaining to
construction, and preparing for a changing future.</p>
<p><strong>Stimulus</strong></p>
<p>The Federal economic stimulus package will pump
more than $136 billion into the construction industry. The figure
represents a 130-percent increase in federal construction spending
compared to fiscal year 2008, said Stephen Sandherr, CEO of Associated
General Contractors of America (AGC). The assistance comes as the
unemployment rate in the industry hit 18.3 percent in January, with job
losses totaling more than 747,000 in the last year.<br /> <br /> The
stimulus package is &ldquo;nowhere near a panacea for the construction
industry,&rdquo; Sandherr said, but having both political parties talking
about the importance of infrastructure is promising.<br /></p>
<p><img alt=\"AGC\'s Ken Simonson\" class=\"image-left\" height=\"313\" src=\"/images/uploads/Simonson.jpg\" style=\"float: left;\" width=\"244\" />&ldquo;There is
a real emphasis on getting this money out fast,\" said chief economist
for the Association of General Contractors of America (AGC) Ken
Simonson. States must obligate half of their total stimulus package
within 120-180 days and the remainder within one year</p>
<h4>AGC ECONOMIST KEN SIMONSON<br /></h4>
<p>&nbsp;</p>
<p>&ldquo;There is
a real emphasis on getting this money out fast,\" said chief economist
for the Association of General Contractors of America (AGC) Ken
Simonson. States must obligate half of their total stimulus package
within 120-180 days and the remainder within one year.</p>
<p><strong>Tough Years for Commercial Building</strong></p>
<p>&nbsp;</p>
<p>Commercial building
has been hit hard by the credit crunch. Large projects nationwide such
as Atlantic Yards in New York, the Chicago Spire, and the Echelon
Resort in Las Vegas have been put on hold.</p>
<p><br /> Construction of
stores and large shopping centers is declining and another large
decline can be expected this year as retail is the most overbuilt
category, Murray said.<br /> <br /> &ldquo;I can\'t remember seeing this before &hellip;
This is going to be a tough year for commercial building, there\'s no
doubt about it.&rdquo; He doesn\'t expect the commercial industry to rebound
until 2011 to 2012.<br /> <br /> His advice to developers is to find niches
that are still showing decent activity and look even harder for
projects that are still going ahead.<br /> <br /> For many companies it
will mean re-tooling and keeping a tight ship. Companies should look at
staffing with multi-skilled employees and do more in-house, advised Ira
Levy, Northeast Region chief executive of AECOM. Sub-contractors will
likely suffer as companies broaden their skills but he remains
optimistic.</p>
<p><strong>Expect Material Costs to Rise</strong></p>
<p>Material costs could be shooting up again by 2010, driven by demand and transportation costs, said economist Simonson. <br /> <br /> &ldquo;By 2010, if economies like China and other developing nations get
going again, they\'re going to add to that demand of materials that we
need here for construction&rdquo; and anytime there\'s a surge in shipping
costs, or fuel surcharges, &ldquo;you feel it on the construction site,&rdquo;
Simonson said.</p>";s:11:"field_id_42";s:0:"";s:11:"field_id_43";s:0:"";s:11:"field_ft_43";s:4:"none";s:10:"category_0";s:2:"16";s:10:"category_1";s:2:"43";}