New Jersey’s Construction Forecasts Hit $39B High

On Nov 13, 2014

Amid signs of economic improvement, New Jersey private sector and public agencies reported construction spending for the next two years (2015-2016) at a new high of $39.8 billion.

The projections came to an audience of 300 from private and government representatives at the 30th annual Construction Forecast Seminar sponsored by the New Jersey Alliance for Action.

Alliance President Philip K. Beachem cautioned, however, that those forecasts could be impacted by funding decisions that must be made by Governor Christie and the legislative leaders, especially how to renew the State Transportation Trust Fund.

A previous record for two-year construction came during last year’s seminar, when the total was $33 billion, making this year’s numbers some twenty per cent higher.

Beachem said this reflected passage of the $750 million college bond issue and continuing recovery from Superstorm Sandy.  He noted that a total of over $2 billion in construction plans were reported by colleges and universities.

“The construction sector plays a significant role in improving any economy since the positive ripple effects of construction can mean significant new revenues for any State” noted Beachem.

Also contributing to the record construction amounts were utilities, $5.7 billion;  State Department of Transportation, $1.6 billion;  pharmaceuticals and medical technology, $3.4 billion;  Port Authority of New York and New Jersey, $2.4 billion;  NJ Transit, $1.5 billion and the New York District Army Corps of Engineers, $1.5 billion.

James Kehoe, Chairman of the Casino Reinvestment Development Authority, told the audience that Atlantic City is “still open for business” and that he is “very optimistic” after listing construction projects under way or planned, including the now-closed Revel Casino.

Beachem also stressed that the figures this year include investments by a number of small businesses — new this year — which he declared are another example of an improving economy and jobs creation.

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