Annual Report

Annual Report 2015

Message from the Chairman and the President

THE NEW YORK CITY CONSTRUCTION INDUSTRY HAS MADE AN IMPRESSIVE COMEBACK.

Thanks to an unprecedented surge in high-end residential construction as well as continued strength in the commercial and government sectors, construction spending and employment are brushing up against the heights reached just before the onset of the Great Recession. In its latest Construction Outlook report, the New York Building Congress forecasts $100 billion in construction activity between 2014 and 2016, leaving little doubt that the industry is booming once again.

All of this construction activity is due to the strength of New York City. The City's economy is generating more jobs than ever, and this has led to increased foreign investments and continued progress on major public and private initiatives. Record numbers of tourists are visiting New York, and every year more people come to live and work here.

But how do we keep the good times going? To sustain and build upon the City's growing momentum, the building industry and the City as a whole face a number of challenges that must be addressed. Consider the following illustrations:

- Housing investment may be at record levels, but it is producing only a little more than 20,000 units annually. Production is slanted in favor of the luxury market and is falling far short of the 30,000 units that were constructed annually between 2005 and 2008.

- The industry still has too many legal and ethical lapses that affect our reputation and stature in the City. Honesty and integrity must be at the top of the industry's agenda.

- Public infrastructure financing is inadequate for a world-class City. Investment in State authority capital programs and the City's capital budget must be increased in the coming years.

- Public procurement and governance need real reform. The cost of government construction projects is higher in New York City than anywhere else. This is not sustainable.

- Ancient work rules and resistance to innovation increase costs and hinder further construction activity. Everyone has a stake in meaningful change.

- Following Superstorm Sandy, New York's governmental agencies have done a commendable job in rebuilding, but much work remains to be completed. Designing a more resilient City is an ongoing effort.

These are just a few examples of the challenges that lie ahead. There is much to do but no shortage of capable leadership and innovative techniques to draw from.

That's where the Building Congress plays such an important role. As a broad coalition of the entire industry, the Building Congress has a unique and powerful voice in advocating the public policies, economic development priorities, and infrastructure investments that create jobs and support the City's long-term prosperity. We urge you to help amplify that voice by engaging with the Building Congress through its program of events, committees, and communications, as well as by responding to calls to action on industry-impacting issues. Your participation makes a difference. We all must work together to take advantage of today's successes to prepare for tomorrow.

Thomas Z. Scarangello, P.E., Chairman