|
Record Construction
Highest
Levels of Construction Spending and Employment Since 1960's
New York City is in the midst of a building boom the likes
of which have not been seen since the 1960's. While construction
activity has been on the rise for a number of years, it picked
up considerable steam in 1999 and 2000.
Construction spending has risen across the board -- from
high-rise office towers and non-residential developments to
housing and schools. This dramatic surge in building and development
is a clear sign that New York City is continuing to add jobs,
tax revenue, residents and tourists. Representing one of the
City's key industries, the design, construction and real estate
professions combined have both benefited from and significantly
contributed to the City's prosperity.
In today's economic climate, there is no shortage of work
for architects, engineers, contractors, skilled labor and
other building trades. In fact, since June of last year, New
York City has added 6,800 employees to its construction workforce.
Consequently, the year 2000 has the potential to be the highest
year for construction jobs in the City in more than 25 years.
Based on a review of capital budgets and private sector development
plans -- highlighted in the charts and graphs that follow
-- this surge in construction activity marks a continuing
trend. Construction spending and employment is expected to
remain at these levels at least through 2003.
Charts and
Graphs
Behind the Numbers-Problems Lurk
Workforce Stretching at the
Seams
For the first time in decades, the building industry's available
workforce is straining to meet the intense demand for new
construction. Skilled workers in virtually all trades are
working unprecedented amounts of overtime. The shortage threatens
to intensify in the coming years as a large percentage of
the workforce nears retirement, and not enough young New Yorkers
are being trained to replace them. Additional workers and
training programs are needed to keep up with construction
activity projected through 2003 and beyond.
Infrastructure Critical
While public construction spending is indeed rising, the expected
level of increase is not keeping pace with private-sector
construction. The City's unprecedented growth is adding jobs,
residents, businesses and tourists that require new infrastructure
to support their activities. New subways, schools, and housing,
as well as improved bridges and roadways, are needed. The
majority of public construction in the coming years is devoted
to maintaining the City's infrastructure rather than expanding
it to meet the needs of a growing economy.
Office Space Crunch
Manhattan office vacancy rates have fallen from 16.0 percent
in 1995 to 5.5 percent in 2000. Though 13.6 million square
feet of office space is either planned or under construction,
most of this space is pre-leased and does not increase available
office space enough to accommodate the projected need for
40 million square feet by 2010. Further proof of the demand
for space is The New York Times recent report that the asking
price for Manhattan office space has increased by 28 percent
this year, 17 percent from May to July alone. To keep the
economy growing, and to retain corporations that have long
formed the bedrock of the City's business community, development
of additional office space is vital.
|
