Just one year ago, New York was in the midst of a white-hot construction market that saw record activity in housing and office construction, grand infrastructure expansions and stadium developments. This activity touched every borough and every sector of the design, construction and real estate industry.

Nonetheless, 2008 is history, and extraordinary challenges now face us. All the key construction indicators – jobs, building permits, design awards, development financing – are trending lower, if not plummeting. Many of our members are facing layoffs, restructuring and shrinking job opportunities, with public sector projects becoming a growing proportion of the market. Last October, the New York Building Congress Construction Outlook report forecasted at least a 25 percent drop in construction jobs by early next year. And more recent data show that forecast is holding up.

Fortunately, our organization and this industry are poised to make a vital impact on the economic and policy issues of the day. The Building Congress advocacy agenda and membership participation are stronger than ever. We have reached further into the industry than ever before, and our credibility and stature has reached new heights with elected, agency and community leaders.

Those of us who have experienced multiple boom and bust cycles know this slowdown will not last, and there are things we can do now to help position the City and the industry for the inevitable acceleration to come. One of the greatest opportunities for the Building Congress, we believe, is to expand our Construction Outlook information reports to more frequently assess the state of the industry, aside from anecdotes and exaggerations. This expanded construction industry information initiative will be a major objective for the Building Congress in 2009, fulfilling the goals in our Strategic Plan to both assist New York City’s economic recovery and do everything possible to support the building industry during this difficult period.

Certainly, these times require change, innovation and new directions for every sector of the industry. For example, we can take little pride in being the nation’s most expensive construction market. As pointed out in the 2008 Building Congress report, New York’s Rising Construction Costs: Issues and Solutions, everything from land to labor productivity and government regulation costs more here than elsewhere.

It is gratifying that industry labor and management organizations are actively and seriously negotiating changes aimed at reducing labor costs. That is essential but not enough. Government and everyone else in the building process must do their part to moderate our high–cost structure. The solutions, to be effective, must involve all sectors and be broad-based.

There’s no doubt that new strategies like these are imperative. Business as usual just will not work these days. That’s true for Washington, Albany, City Hall and all of us. Every single organization in our industry must change. What you can expect from the Building Congress in the coming year is support for your innovations, a forum for industry-wide dialogue with political and community leaders, and continued advocacy for infrastructure funding, transportation financing, and other strategic investments that can most effectively lead the way to New York City’s recovery.

Stuart E. Graham, Chairman
Richard T. Anderson, President