WASHINGTON (CNS) — Maryland’s construction industry is one of the hardest hit in the nation and the business’s picture nationally is not likely to get much better, according to a new forecast.
The Associated General Contractors of America released its construction employment forecast for 2010, predicting privately-funded construction would continue to decline. The forecast said that 81 percent of firms surveyed had to cut profit margins in their bids to stay competitive, with another 11 percent willing to take a loss just to keep working. Almost three-quarters of the firms had to lay off workers in 2009, and less than one-third said they received at least one stimulus-funded contract.
According to figures from the U.S. Census, Maryland lost more than 30,000 construction jobs in the past year. Construction employment in the state dropped 18 percent between November 2008 and November 2009 — a change equal to Wyoming and better than only four other states — Kentucky, Tennessee, Nevada and Arizona.
The AGCA said nationwide spending on construction projects dropped to a six-year low at the end of 2009, and nine out of 10 firms surveyed do not expect serious improvement until at least 2011.
Maryland construction firms say they have not been helped by stimulus funds, aside from highway and transportation work.
Donald Thomason of Silver Spring, owner of DE Thomason Construction Co. Inc. in Takoma Park, said he hopes this year will be better than the last, but no thanks to stimulus funds.
“I wished we had got some stimulus money; I’m telling you we needed it bad,” Thomason said. “They helped all the fat cats; they didn’t help the poor guy out.”
The construction industry accounts for 7 percent of Maryland’s employment, and is the fifth-largest economic sector in the state, according to the Governor’s Workforce Investment Board.
In a September 2009 report, the investment board’s Construction Industry Initiative Steering Committee said that stimulus construction funds for Maryland totaled $860 million, with $610 million going to transit and highway transportation projects.
[By Tiffany March of Capital News Service]
Charlotte Staelin says
I just had a conversation this morning with a Kent Couny builder who said they have more work than they can handle, so this prediction must vary from area to area.