Table of Contents Industry Support Aids Crucial Election Victories Industry Applauded for Memorial Support Powering New York’s Future Updated Construction Outlook Forecasts Robust Activity Through 2008 New York Building Congress Industry Recognition Dinner: New York Building Congress Salutes Industry’s Best Anderson Named to RENY Editorial Board Mai Hariu Joins Building Congress City Council Speaker Candidates Address Building Congress WTC Update – Cahill Addresses C.O.P.

New York City construction spending is estimated to end 2005 at $18.4 billion, and could exceed $21 billion in each of the next three years according to a preliminary update of the New York Building Congress Construction Outlook report. The update was prepared by the economic research firm Urbanomics in recognition of a rapidly evolving construction marketplace and as a preview of the complete 2006-2008 report to be released early next year.

The update demonstrates that residential construction continues at a record-setting pace, with 27,500 new units authorized this year and nearly 30,000 units projected in each of the next three years. Office construction slipped somewhat in 2005 with only one major start and seven other Manhattan buildings in development but is expected to more than rebound with 11 buildings planned for 2006-2008. Total 2005 nonresidential construction, which includes spending by institutions, is expected to increase by $450 million over 2004 and exceed $5 billion annually through 2008.

In its tradition of identifying issues behind the expected spending levels, the report notes that the forecast is contingent upon public spending occurring as planned and the ability of the City of New York and the major public agencies to resolve funding uncertainties.

“While the construction outlook is indeed strong, much depends on the public financing capacity of local government and major public agencies,” says Building Congress President Richard T. Anderson. “But the continued growth in the residential market is extraordinary and the strength of the institutional and infrastructure sectors is very reassuring. These investments have all kinds of positive implications for the City and point to a very strong overall outlook.” He added, “There are questions, of course, such as the availability and cost of skilled labor and materials to support these spending levels. There will be inflationary pressures, no doubt.”

The complete Construction Outlook 2006-2008 will be published by March of 2006.