Tampabay.com
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JANUARY 08, 2009

Florida hard hats to Washington pols: Stimulate us

Florida's construction industry has idled 156,000 workers since real estate peaked in July 2006. The industry's biggest trade group, the Associated General Contractors of America, wants to bring thousands of those employees back into the workforce, courtesy of the federal government.

As it lobbies for a stimulus package from Washington, the trade group reports that an extra $1-billion in construction spending in Florida would "create or sustain" 23,000 jobs and add $748-million to the state payroll.Agc_2 And it's making dire predictions if it doesn't get its way:

An estimated two-thirds of the nation’s non-residential construction companies are planning to cut their payrolls, according to new employment and business forecast figures released today by the Associated General Contractors of America.  All told, those layoffs are forecast to result in a 30 percent decline in the number of people working on construction projects.

“Unless the business climate changes significantly and soon, the construction sector will continue to experience the kind of devastating job losses and crippling declines in business activity that will undermine efforts to end the recession,” Stephen Sandherr, the association’s chief executive officer said.

During a conference call Thursday, the AGC urged the government to start disgorging money for infrastructure improvements, estimating that the states have $64-billion worth of road and bridge projects "shovel ready."

AGC counted 501,000 Floridians engaged in construction related work in October 2008, a decrease of 23.8% from the 2006 peak.

Admittedly, the 23,000 jobs forecast is a bit of a myth: The trade group said only 7,800 of the positions would be on?site construction jobs in Florida. Another 3,700 would be tied to building supply companies and related industries. Not all of those jobs would be in state.

The bulk of the jobs, however, are indirect spin offs created whenever a construction worker spends his cash. It could be anything from the Publix clerk bagging his groceries to the bar tender slinging his drinks after hours.

Despite the sleight of hand on the jobs count, Florida needs money to jump start the bulldozers. Our population growth through the middle of last year was just 0.7 percent. This compares to the national average of 0.9 percent.

Remember when the inflow of new residents into Florida shamed most of the other states? Where's Mickey Mouse when you need him?

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Housing market news is the focus of the (Un)Real Estate blog. It offers an inside look at the Florida housing market and real estate news, with a focus on Tampa Bay. Its goal? Simple: To help you keep a roof over your head without losing your shirt.

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