Private- and public-sector agencies reported that construction spending for the next two years (2015-2016) will be at a new high of $39.8 billion.
The projections were revealed to an audience of 300 private-sector 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 the forecasts could be impacted by funding decisions that must be made by Governor Christie and legislative leaders, especially how to renew the state’s 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 almost 20 percent 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 more than $2 billion in construction plans were reported by colleges and universities.
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 Hotel.