After the sharp decline in construction activity in New York City in 2020, the next three years are expected to see a resurgence in spending and job creation as the industry continues to advocate for increased public investment .
The New York Building Congress’ New York City Construction Outlook 2021-2023 Released today, the spending forecast will rise to $ 60.6 billion in 2021, up 26% from 2020, when non-essential buildings were closed for 11 weeks.
The report was released today at the annual Building Congress Construction Industry Breakfast, where Governor Hochul delivered the opening address.
“Every year I travel to every county in New York State and find that infrastructure is not just an abstract concept but an integral part of every New Yorker’s life,” said the governor. Hochul. “As governor, I will pursue an ambitious agenda that brings our infrastructure into the 21st century – because it’s in our DNA as New Yorkers to think big and tackle the impossible. We cannot achieve this without strong public-private partnerships like with the New York Building Congress, and I look forward to continuing to work together to build New York’s future.
“Despite the economic impact COVID-19 has had on New York City since the start of the pandemic, the construction industry is proving its strength time and time again, as spending and job creation continue on an upward trend from 2020, “said Carlo A. Scissura, President and CEO of the New York Building Congress. “With a long road to economic recovery ahead, the ever-present threats of climate change and collapsing infrastructure, we need significant and immediate support from Washington. Investments in infrastructure are investments in a stable and vibrant city, state and nation. “
“Over the past year and a half, the construction industry has once again demonstrated its dedication to New York City and the amazing people who call it home,” said Elizabeth Velez, President of the New York Building Congress and president of Velez Organization. “The Construction Outlook report released today by the New York Building Congress shows that our industry is poised to lead the way out of the economic crisis caused by this terrible pandemic. In the process, I know we will continue to diversify our own ranks, innovate to meet the demands and realities of the 21st century, and build a more just city that works for all.
“No matter what you throw in New York City, we are able to resist it and come back stronger,” said Cheryl McKissack Daniel, President of the New York Building Foundation and President and CEO of McKissack & McKissack. “The New York City Construction Outlook 2021-2023 report is further proof of the strength of the construction industry in times of crisis. This should underline why we need more investment in our infrastructure, because it is one of the best ways to improve our society. “
“The critical role of the construction industry for the health and vitality of our communities could not be clearer than in this report on the construction outlook,” said Lorraine Grillo, Senior Advisor for Recovery. New York City. “The expected robust growth and trajectory of investment in construction jobs, new construction and our public infrastructure reaffirms the importance of the work of the resilient New Yorkers represented by the New York Building Congress in achieving a recovery for us all. “
“It’s clear that confidence in New York City’s construction and real estate sectors remains high, and for good reason,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York. . “Time and time again, it is the major infrastructure and public works projects that have spurred the economic activity that leads to the recovery, and as always, our members are ready to get to work to rebuild New York stronger and more resilient than ever. It is critical that we maintain this upward trend in construction activity with the successful adoption of the Biparty Infrastructure Framework, which will invest in New York’s future and create tens of thousands of careers for the middle class. with benefits in the process.
“Real estate and construction make up 10% of the city’s GDP and are the fastest way to create jobs to rebuild the city’s economy,” said Louis J. Coletti, President and CEO of the Building Trades Employers Association.
“As New York City builds and rebuilds itself over the next few years, AIA New York will work with its partners in the building industry to advocate for higher standards of design excellence for public projects. and private, ”said Benjamin Prosky, executive director of the American Institute of Architects New York Architectural Center (AIANY). “From ambitious designs that improve public infrastructure to increasing quality affordable housing, upgrading schools and promoting advancements in energy efficient technologies, the architects recognize this is a pivotal moment for the design, build and develop community to shape a NYC that is beautiful, efficient and fair for all.
The data and projections in this report were generated without the federal infrastructure bill that is under discussion in the House of Representatives, which would have a massive economic impact on New York City and the entire country. If the $ 1.2 trillion plan were passed, it would speed up construction of the Gateway program, a long-delayed but nationally crucial infrastructure project that could potentially generate $ 19 billion in economic activity.
The Construction prospects The report provides a three-year analysis and forecast of construction spending and employment in New York City, while also providing a deeper insight into the factors that could shape the city’s industry and economy over the years. future. The New York Building Congress also adjusted its inflation projections for the first time, giving a more complete picture of the historical comparison of spending. The latest report forecasts the second highest spending period in real dollars and the fourth highest after adjusting for inflation.
The main lessons of the report include:
● Increase in construction employment: The industry will likely add 135,000 new jobs to the economy in 2021, but employment will remain at its lowest since 2014. Employment is likely to continue its upward trend over the next few years, with 140,200 jobs in 2022 and 157,100 jobs in 2023.
● Overall expenses: Construction spending is expected to total $ 174.1 billion between 2021 and 2023. Compared to the pre-COVID-19 period of 2017 to 2019, when construction was at a peak, spending is only expected to decrease by 1. $ 5 billion. When adjusted for inflation, however, the drop is much larger at $ 38.2 billion.
● Government spending: Government spending is up from 2020 – when $ 21.3 billion was invested by New York City, New York State and major agencies – but will decline over the forecast period, passing from $ 23.1 billion in 2021 to $ 22.2 billion in 2022, then to $ 21.1 billion in 2023. Government spending is expected to be higher during this period compared to 2017 to 2019, Public investments are now lower than at the height of the Great Recession when adjusted for inflation. This decline is particularly significant given the need for public spending to stimulate economic recovery.
● Residential construction expenses: The Building Congress forecasts $ 13.6 billion in residential construction spending this year, up 21% from 2020. Over three years, spending is expected to total $ 36.6 billion, a 33% drop from 2017 to 2019.
● Non-residential construction expenses: Non-residential construction spending, which includes offices, education, health care, public buildings, sports and entertainment venues, and hotels, is expected to total $ 23.7 billion in 2021, to drop to 22 , $ 2 billion in 2022 and increase to $ 25 billion in 2023.
● Public transport expenses: The MTA will spend 33% more on construction projects over the next three years than the pre-COVID period of 2017 to 2019. When adjusted for inflation, however, this is a more modest increase of 7%.
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