It’s not in decline, but national construction spending is slowing, according to industry group Associated Builders and Contractors. But some Oklahoma companies are in hiring home.
The state saw a 6.9 percent increase in construction jobs from June 2015 to June 2016, The Journal Record’s Molly Fleming reports:
Flintco Vice President and Area Manager Kirk Mammen said the company will soon be hiring because of the upcoming workload. Flintco is finishing work on the University of Oklahoma’s Gaylord Family Oklahoma Memorial Stadium, with more projects on the horizon. “We are certainly busy with the stadium project at OU,” Mammen said. “We’re busy, but we see the need to continue to acquire work.”
Alaska, Wyoming, North Dakota, and other energy-dependent states haven’t fared as well. ABC gave its mid-year economic forecast on Monday. Nationally, non-residential construction will grow 3 percent in 2016 and 3.5 percent in 2017. But the next wave of construction projects hasn’t started yet, which is leaving some in the industry concerned.
Manhattan Construction Development Director Xavier Neira said the company has plenty of work for the next two-and-a-half years, but the next wave of work hasn’t come through yet. The company is hiring people to get ready for upcoming projects. “These are projects that have been planned for many, many years,” Neira said. The company has also done some construction work with Oklahoma tribes. The casino industry generated $3.1 billion in construction costs during 2014, according to a study commissioned by the Oklahoma Indian Gaming Association.
Architecture design typically leads construction work by anywhere from nine to 12 months. Nationally, office and hospitality sectors saw construction spending grow in 2016, while projects supported by the public decline during the same period, according to the American Institute of Architects.
ABC chief economist Anirban Basu said he doesn’t expect to see a major resurgence in construction during the rest of 2016. Office and lodging sectors will see more spending because of international investment, who are also drawn to the steady monthly revenue stream they create.
“Business and leisure travel are up,” he said. “Consumers are not spending it on apparel or leisure items.” He said low oil prices have boosted consumer spending, which he equated to a tax break. But it’s not just the energy industry that is affecting the country. U.S. exports fell 4.8 percent last year. “The global economy is weak,” he said. “It’s not just the energy industry that’s in distress.”
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