NYC Construction
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NYC Construction
New York City's government, agencies, institutions and private developers are expected to spend $93 billion through 2010 for new roads, office buildings, apartments, and schools, according to a new report. The forecast by the New York Building Congress does not factor in the effects of the recent weeks of global financial turmoil that saw the bankruptcy of Lehman Brothers; the pending sale of Bear Stearns, Wachovia and Merrill Lynch & Co; or the problems at AIG. The global financial crisis is expected to cost New York City thousands of high paying Wall Street jobs, plus jobs that support them, such as lawyers, accountants, and restaurant workers. The credit meltdown has prompted Mayor Michael Bloomberg to ask the City Council to lift term limits, to allow him to run for a third term and to use his financial expertise to steer the city through a potential economic storm. Historically, construction spending has lagged during economic downturns, because banks and other lenders and investors have already allocated much of the construction budgets. The effects of a downturn may not be felt until 2010 and beyond, the report said. The Building Congress expects construction spending by year-end to reach a record $33.8 billion, a 16 percent increase over 2007. The coalition of businesses, labor, associations, and governmental organizations representing the design, construction, and real estate interests, sees spending tapering off to $33.4 billion in 2009 and $26.2 billion in 2010.
Revver | October 17, 2008
