| February 24, 2010 |
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Mr. Obama take note. As you and your administration make jobs a top priority in 2010, the construction industry needs your help. For the first time since the start of the economic downturn, every state and the District of Columbia reported losing construction jobs over the past twelve months, according to a new analysis of state-by-state employment data released by the Associated General Contractors of America. The research found few signs of a construction industry recovery with only six states reporting construction job increases between November and December 2009. "There's nowhere for construction workers to turn for relief from job losses and hardship," said Ken Simonson, the association's chief economist. "Sifting through the monthly variations, it is obvious that construction employment is losing ground almost everywhere." Simonson noted that Nevada experienced the largest annual percentage decrease in construction employment (27.7 percent), followed by Wyoming (23.8 percent); Tennessee (20 percent); Montana (19.6 percent); and Arizona (19 percent). He added that California had lost more construction jobs (116,100) than any other state during the past year. The smallest declines in construction employment between December 2008 and December 2009 were in Louisiana (3.5 percent); D.C. (4 percent); Oklahoma (4 percent); West Virginia (4.2 percent); and North Dakota (4.8 percent), the economist noted. Simonson added that the District of Columbia lost the fewest of construction jobs (500) during that time. Unusually cold and wintry weather throughout most of the country in December contributed to the downward trend in monthly construction employment, Simonson suggested. He said that compared to November reports showing 24 states added construction jobs during the past month, the December report had only six states adding jobs after normal seasonal adjustments (which does not take into account exceptional mild or harsh weather.) Mississippi had the largest monthly percentage increase in construction employment (1.2 percent) followed by Virginia (1.1 percent); Hawaii (1 percent); Oklahoma (1 percent); South Carolina (0.5 percent); and New Mexico (0.2 percent). Meanwhile, Montana had the largest monthly percentage decrease (10.5 percent), followed by North Dakota (9.6 percent); Wyoming (6.8 percent); Nevada (5.7 percent); and Wisconsin (5.5 percent). Given that 90 percent of contractors don't expect a recovery in 2010, according to an industry forecast the association released earlier, construction officials urged Congress and the Administration to act now to avoid continued construction job losses. "The best way to boost employment is to continue making the kind of infrastructure investments everyone agrees our country needs to remain globally competitive," said Stephen E. Sandherr, the association's chief executive officer. Will we begin to see more construction workers building wind farms, solar heat, bridges and roads, and making the necessary improvements to our daily lives or will we continue to see partisanship and in-fighting stalling what most agree are the necessary changes for our nation's survival. Only time will tell (this reporter still holds out 'hope' in this administration and its overall goal of making American strong again.) Interestingly enough, Onvia, the creator of Recovery.org, a private sector initiative to give businesses transparency into recovery project spending, is forecasting the creation or retention of 1.1 million direct and indirect jobs as a result of stimulus-funded contracting in 2010. The delayed effect of the stimulus is due to the fact that 75% of the funds allocated for recovery projects did not actually leave Washington DC in 2009, according to Onvia analysts. "The true impact of the stimulus spending was not felt in 2009, but will be in 2010," said Mike Pickett, CEO of Onvia. "In 2009, we saw just 25 percent of recovery funds actually leave Washington and reach the contractors and subcontractors that actually create jobs. Our analysts foresee that the majority of funds will finally reach 'Main Street' in 2010." Onvia's information, which is updated daily from 89,000 government agencies, reveals the following:
"With government spending at $5.5 trillion in 2010, government spending will be nearly half of GDP - an all time high. Areas like infrastructure, energy and information technology will benefit from plenty of government spending, but it will remain a buyers' market due to fierce competition for contracts. Welcome to the 'Next Economy' - one in which government and business operate more closely," said Pickett. Finally, more good news comes from homeowners themselves who report that they will remodel in 2010. After a year of steady declines in home remodeling, the Spring 2010 www.remodelormove.com U.S. Remodeling Sentiment Report reveals a 13% increase in the number of homeowners who say they will remodel in the next 12 months. This increase follows a 5% increase in last year's Spring 2009 report. The continuing upward swing in remodeling sentiment indicates that 2010 will show a strong increase in remodeling activity. The Spring 2010 Sentiment Report, a survey of 5,000 homeowners in the U.S. who are considering remodeling, also shows that the recession has had several impacts on U.S. homeowners. These include:
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