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    2008 Alaska's Construction Spending Forecast

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    Author
    Killorin, Mary
    Goldsmith, Scott
    Keyword
    oil and gas sector
    construction employment
    material and labor costs
    private sector
    long-term trend
    inflation
    Metadata
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    URI
    http://hdl.handle.net/11122/12201
    Abstract
    Total construction spending “on the street” in Alaska in 2008 will be $7.01 billion, down 2% from last year. Excluding the oil and gas sector—which accounts for 41% of the total—construction spending will be down for the second year in a row, falling 6% to $4.12 billion. Last year it declined 3%. Lower construction spending, combined with higher material and labor costs, will result in a modest reduction in the level of construction employment in 2008. Although this will be the second year of decline in construction employment, it remains well above the long-term trend. Construction costs continue to rise faster than the general rate of inflation—and that trend is expected to continue, further reducing the purchasing power of each construction dollar. Private-sector construction spending is projected to be $4.64 billion in 2008, an increase of 2% over 2007. Strong growth is expected in oil and gas, mining, utilities, and the other basic sectors.
    Date
    2008
    Publisher
    Institute of Social and Economic Research, University of Alaska.
    Type
    Report
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