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With new development changing the face of Anchorage, contractors are hoping to hold their own this year and into 2010 despite economic hard times.
The recent resurgence in construction is reflected in a handful of large-scale projects around the city, including the Dena'ina Civic and Convention Center; JL Tower, a 14-story, 300,000-square foot office complex with in Midtown's Center-point Subdivision; 188 Northern Lights, a 13 1/2-story building smack in the center of Midtown with 120,000 square feet of office space and 20,000 square feet of storefront space; and Tikahtnu Commons, a regional retail and entertainment center on a 95-acre parcel of CIRI land in northeast Anchorage.
Especially given the situation in the rest of the country, said John McKinnon, executive director of Alaska General Contractors (ACG) in Anchorage, he'd be satisfied if construction in 2009 comes in flat with last year's performance. Construction sources count a large list of projects ongoing this winter and into the spring and summer.
Forecasting is always difficult, agreed Richard Cattanach, CEO of the Construction Education Foundation, but in the current environment, it's almost impossible. On the national level, the problems with the financial markets and such major industries as the automobile industry have created a sharp downturn in forecasted construction spending. Alaska might be able to avoid much of the fallout from the current national crisis, he said, but will feel the impact of lower oil prices and a reduction in the capital budgets of national owners. However, in the short term, Alaska might well be able to minimize the reduction in construction spending because of the record capital budget passed by the Legislature in 2008 and the bond issue passed by the voters last November. The projects included in the capital budget and the bond issue should start hitting the street in 2009 and should temper the impact of the national downturn for both 2009 and 2010. "Hopefully," Cattanach said, "the Alaska construction industry will once again avoid the declines experienced by the rest of the country and will emerge virtually unscathed when the national economy recovers."
BIG OPENINGS DOMINATED 2008
The new year opened in Anchorage with the Dena'ina conference center, built by Neeser Construction, hosting a dinner party for Alaska's 50th anniversary of statehood.
The...