The New York Building Congress’ latest outlook report shows construction spending in New York City will hit almost $190 billion between 2019 and the end of 2021, indicating the city’s current building boom will continue, according to www.constructiondive.com.
Spending is expected to reach $61.5 billion in 2019—a 10% increase from $56 billion in 2018. The Building Congress also predicts construction spending will hit $65.9 billion in 2020 and $62.1 billion in 2021. Nonresidential spending—such as office construction and institutional projects—is expected to reach $21.2 billion this year, which is an increase of almost 4% compared with 2018.
The Building Congress also said New York City’s construction employment will increase for the eighth consecutive year in 2019 and total 161,000 positions. However, in 2020 and 2021, the number of those working in the city’s construction industry is expected to fall to 157,200 and 153,600, respectively.
Although construction activity in New York City seems to be maintaining a solid pace, there are indications the overall U.S. construction industry could experience a slowdown.
Experts say decreases in architectural billings, which indicate future construction activity, and slightly slower pace of employment growth could signal a slowdown. However, other metro areas have a significant amount of construction work to support a population increase and new industries. Backlogs are still strong, though labor shortages have been causing some projects to stall.
Still, contractors are optimistic about their businesses for the next 12 to 18 months and anticipate growing sales and profits and increased hiring.
