Commercial Construction Layoffs Could be Averted with 2009 Obama Infrastructure Funding

According to new employment and business forecast figures released by the Associated General Contractors of America, about two thirds of the nation's non-residential construction companies are planning to cut their payrolls.

The organization reported that AGC member companies have seen, or are planning for, declining activity in every type of construction. However, the forecast did find that planned investments in infrastructure projects, as part of the federal stimulus package, are likely to dramatically improve the employment and business outlook in 2009.

President-elect Obama has outlined his proposed plan to build a sustainable renewable energy industry that includes wind, solar and biofuels and related renewable energy technologies.

About 85 percent of nonresidential construction companies would either cancel layoffs or add new employees if states embarked on stimulus-funded infrastructure projects, according to AGC's survey. And construction companies would increase their payrolls by 25 percent if the stimulus included new infrastructure investments.

Stephen Sandherr, chief executive officer of AGC, said builders across the country are urging Congress to include infrastructure investments in the stimulus. AGC is calling for $2.2 billion to help renovate hundreds of federal facilities and for additional funds to repair crumbling schools.

Indications are that new tax incentives are being planned to encourage conversions to energy-efficient buildings, construction of renewable energy facilities, remediation of Brownfields projects and construction of new airport and commercial projects.