Since 2014 was a solid year from an economic standpoint, most commercial construction contractors look to 2015 with optimism. It’s certainly more gratifying to draft an economic outlook article when business is picking up, as is the case.
Since 2014 was a solid year from an economic standpoint, most commercial construction contractors look to 2015 with optimism. It’s certainly more gratifying to draft an economic outlook article when business is picking up, as is the case.
Construction in our region has steadily picked up pace during the past year, and with the long bid lists and solid projects in the works, 2015 is expected to be even stronger.
In the Lehigh Valley, projects were kick-started with the Neighborhood Improvement Zone in Allentown and the City Revitalization and Improvement Zones in Bethlehem. These zones are an economic development tool that allows state and local nonproperty taxes from newly established businesses to be diverted.
The goal is to help finance development within the zones. The incentives help spur construction growth, which ultimately overflows into development in the outer lying areas.
Associated Builders & Contractors economist Anirban Basu expects a rise in backlog, construction employment and nonresidential spending next year.
“ABC forecasts nonresidential construction spending will expand by roughly 7.5 percent [in 2015],” Basu said. “The segments that will experience the largest growth in construction spending in 2015 include power (e.g. natural gas-related construction), lodging (leisure and business spending), office space (professional services employment creation) and manufacturing (rebounding industrial production).”
Basu’s national viewpoint also holds true in the Greater Lehigh Valley.
Projects will continue in 2015 from the box-style warehouses to the tax-incentive zones.
Also, the new Route 33 Palmer Township interchange project will produce another healthy construction project list as it links several industrial parks – from the Chrin Commerce Center to other Northampton County industrial parks.
In the power sector, the PennEast pipeline and a wind turbine park in Carbon County are two proposed and pending projects that could take further root in 2015.
