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Description
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.
Publication Date
4-17-2008
Keywords
oil and gas sector, construction employment, material and labor costs, private sector, long-term trend, inflation
Recommended Citation
Killorin, Mary and Goldsmith, Scott, "2008 Alaska's Construction Spending Forecast" (2008). Reports. 380.
https://scholarworks.alaska.edu/uaa_iser_reports/380
Handle
http://hdl.handle.net/11122/12201