Thursday, July 12, 2007

Building Boom - The Real Story of Construction Employment

Economists and nay sayers who claim that the economy is destined for ruin due to construction layoffs from the temporary housing slowdown, forget many of these firms and their workers have multi- dimensional skill sets that transfer quite well to the booming commercial sector.........

Building boom won't quit
Commercial construction up 37% despite housing slump

Residential construction has fizzled but Sacramento is otherwise booming, with about $180 million more in non-residential building under construction so far this year compared to early 2006 -- a 37 percent increase.

The area's top general contractors report they haven't seen a decline in work that typically accompanies a new-housing slump. They're tied up with projects for years to come. ...................

............"We're booked for two years," said David Higgins, president of Harbison-Mahony-Higgins Builders Inc., the area's No. 3 contractor based on revenue of $330 million in 2006. Like other large contractors, the company does a substantial amount of work in the medical field, which hasn't been hindered by the housing market. One reason for that, Higgins said, is state seismic safety requirements. Some of the work on hospitals has already started.

"Our volume is going to be up this year and next year," said Frank DaiZovi, vice president of Turner Construction Co., the area's top builder, with $475 million in revenue last year through the Sacramento office. The company is building medical centers and schools among many other projects. ......

Sacramento Business Journal

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