Optimism for Construction Industry Growth Remains High in NY

Despite the recent economic downturn, optimism about the construction industry in NY is still high. According to Business Insider, the industry will need 2.2 million more employees by 2020. That means the industry needs to hire 61,000 new workers monthly to keep up with demand. This will likely drive up the cost of construction.

However, there have been several challenges for the construction industry in the City. For example, the COVID-19 pandemic has impacted the construction industry in the City, causing many projects to be suspended. Furthermore, uncertainty in the real estate industry and the government's finances has affected construction spending. Despite these challenges, the industry has rebounded after a sharp dip in the second quarter of 2020. While it continues to face challenges, government spending on construction has been a driving force behind the recovery.

The construction industry in New York City has a diverse workforce. Hispanics represent 39 percent of workers in the industry, a higher proportion than the rest of the City and the country. Blacks or African Americans make up 14 percent of industry workers, and Asians make up nine percent. The New York City construction industry employed 284,400 people in 2019. Almost two-thirds of these workers live in New York City. More than half of these construction workers are unionized.

Although New York City's construction industry is experiencing a slump, the New York Building Congress expects that construction spending will rebound in 2021. This is partly because the state recently passed a $1.9 trillion economic relief package that included state and local aid for construction projects. In addition, the incoming administration has introduced a $1.7 trillion infrastructure plan. The federal relief package is expected to spur construction activity in the City, and the pent-up demand should also help the overall state's economy.

Construction employment in the greater New York City area is projected to reach 373,800 jobs in 2020, which accounts for 4.7 percent of the entire construction industry in the nation. From 2010 to 2020, the construction industry in New York City increased by an average of 4.6 percent annually. In that period, the City's construction industry grew fastest, reaching a record 161,300 jobs. Of this total, construction employment in New York City grew at a 43.5 percent annual rate, far outpacing the rest of the private sector.

The industry employs more than 400,000 people. Women represented about 10 percent of the industry in New York City by 2019, compared to seven percent in 2009. The proportion of women in the industry was similar for the state and the country. Between 2009 and 2019, the number of women employed in construction increased by 63 percent.

New York State's construction industry was the fourth largest in the nation but saw the steepest job losses in 2020. The job losses were concentrated in New York City, which accounted for more than half of the state's job losses. The total number of construction jobs in New York City and the state declined by 21.4 percent.

Although the overall construction industry in New York remains high, some problems can pose obstacles to growth. One major issue is the COVID-19 pandemic, which has affected many states. Downstate New York was hit particularly hard by the epidemic. As a result, construction jobs in the downstate region declined by 12.9% in 2020 and nearly 20% in 2020 in New York City alone. This trend continued during early 2021.

New York construction spending is projected to reach $60.6 billion by 2021, down slightly from the previous year's record-high of $60.6 billion. Despite the pandemic's impact, however, the construction industry remains optimistic about the future of the industry. While there is still much uncertainty in the real estate market and with the state of government finances, the government has played an essential role in preserving construction spending.

Construction industry optimism is still high across the country, even though the economy is struggling and the conflict in Ukraine has put a damper on projects. According to a survey from the Associated General Contractors of America, 63% of construction companies are optimistic about future growth. In addition, many are pointing to increased construction spending for new buildings and infrastructure, such as bridges and roads.

The optimism in the construction industry is partially offset by higher demand and lower prices for materials. Moreover, contractors expect to increase revenue in the next 12 months and maintain a stable profit margin. This is mainly due to increased renewable energy, housing, and transportation investments. But the construction industry isn't fully recovered yet, and some obstacles remain. Despite these hurdles, New York construction companies are cautiously optimistic.

The state of New York is also encouraging. Its capital spending plan calls for $32.2 billion over the next decade. In addition, the Port Authority of New York and New Jersey recently updated its capital spending plan for 2019 and added $4.8 billion to the project. Another positive factor for the construction industry is that the Biden Administration recently passed a $1.9 trillion economic stimulus package that includes state and local aid and a $1.7 trillion infrastructure plan. The federal stimulus package is expected to boost construction activity and spending in New York City.