Construction Stimulus Overview: Resources, News, Opinion
This article provides an overview of stimulus related resources for those seeking to better understand where the stimulus dollars are going. The opinion section provides some insight into what construction industry analysts think about the situation.
If your business already works in the public sector then you will probably see some growth, particularly in highway and bridge construction.
If you’re in the private sector, well, here’s the positive spin on the situation: low material costs, low interest rates and low wages make this a great time to build if you or your clients can get the cash. One construction industry analyst noted that “smaller-scale loans from regional and local banks are going forward for commercial projects.”
Construction Stimulus Resources
We compiled these resources to better aid your understanding and possible benefit from the “American Recovery and Reinvestment Act of 2009″ as it relates to construction projects.
Construction Stimulus Special Section by Construction.com
This special section by McGraw-Hill’s Construction.com pulls in construction-related stimulus news stories from their properties as well as other news sites. This page provides an overview of the stimulus impact, though it’s biased heavily towards McGraw-Hill properties.
The Stimulus Bill, Sector by Sector
“A look at the House Appropriations Committee’s explanatory report on the bill shows substantial funding for a wide range of construction programs across many federal departments and agencies. Stimulus aid for buildings is especially widespread among agencies.”
Stimulus Flows Into Patchwork of State Transport Projects (includes state by state breakdown)
This is a news story from NYTimes – included because it has a state by state breakdown of where the funds are going. Look on the left side for your state.
Stimulus Watch
This site provides an overview of how states spend their stimulus dollars – it’s more of a grass-roots site. In their words: “StimulusWatch.org was built to to help the new administration keep its pledge and to hold public officials to account. We do this by allowing you, citizens around the country with local knowledge about the proposed projects in your city, to find, discuss and rate those projects.”
Where Are Texas’ Highway Stimulus Dollars Going?
“Over the past several days, the Texas Transportation Commission has been sorting through TxDOT’s Agency Recommended Stimulus Projects list, deciding where to best spend the state’s $2.25 billion in ARRA (American Recovery and Reinvestment Act) highway and bridge stimulus dollars. The recommended list proposed by TxDOT is composed of 21* new highway construction projects and 266 maintenance projects.”
Taking Apart the $819 billion Stimulus Package
This image provides a grasp of the scale of the package along with visuals to help you “see” where it’s all going. The second graph, spending over time, helps illustrate some of Mr. Jim Haughey’s arguments below.
The Stimulus Plan: How to Spend $787 Billion
“A detailed look at the final package passed by Congress, based on estimates by House and Senate committees and the Congressional Budget Office.”
Federal Stimulus Construction Project Leads
These are for-pay leads from Reed Construction Data. We are not affiliated with them, nor have we utilized their service. This is purely an informational link, not a recommendation.
Construction Stimulus Opinions
We’re sure you have opinions on the stimulus. For now we’re pleading “no-comment” and defering to the pundits most familiar with the economics of the construction industry.
Construction gets a temporary boost from Obama recovery plan
Mr. Jim Haughey, chief economist at Reed Construction Data, provides dire, thoughtful criticism of the stimulus. In a nutshell: “…temporary spending on public facilities and social programs, unlike permanent tax cuts, does not produce the permanent jobs when people are hired to produce goods or services that others voluntarily buy. The Obama solution means that we will have to choose in about two years between ending the $400 billion /year temporary spending or raising taxes to pay continuing it. Either choice will restrain economic growth.”
Construction stimulus: A quick shot in the arm or long, slow recovery?
An interview with Mr. Haughey. Provides more insight and reality checks for those who may be overly hopeful or enthusiastic about the stimulus.
Stimulus Package: “Saving Grace” for A/E/C Industry in 2009, Says Economist
Robert Murray, McGraw-Hill Construction’s chief economist, spoke recently and this coverage of his talk says: “Thanks to the $130 billion earmarked for infrastructure and building projects, the overall decline in spending on construction starts in 2009 will be 11 percent—compared with what Murray estimated would have been a 15-16 percent decline without the stimulus “cushion.””
Will infrastructure stimulus create jobs?
A CNN news story, interviews with a laid off construction manager who’s hopeful but about to get laid off from one of his part-time, non-construction jobs.
Some suggestions on how to spend $800 billion
Ideas from an architect regarding how to spend the stimulus. It has sparked quite a storm of response.
More Resources:
In case you need to brush up on your highway construction terminology: Road Design and Construction Terms (PDF)
Highway Construction Cost Increases and Competition Issues
How To Get Paid on Construction Projects — Before a Company Goes into Bankruptcy
Foreclosed Home Security: How to Protect Vacant Homes from Burglary
Recession Crime: 21 Ways to Protect Yourself from Recession Theft in 2009
