When the federal government announced their $787 billion stimulus package in February, the goal was to generate or retain over 3.5 million jobs nationally. A recent estimate from leading economists suggests that the stimulus will be lucky if it positively affects 2.6 million jobs. Of the American Recovery and Reinvestment Act (ARRA) stimulus dollars given to Florida and California, both states have made transportation infrastructure a top priority, with Florida having designated $1.6 billion to transportation spending and California with $2.6 billion to spend. Florida estimates that for every $1 billion they spend on roads, 28,000 jobs are generated. California estimates that every $1 billion they spend boosting their $2 trillion infrastructure system creates 18,000 jobs.
Many construction contractors who, before the recession, worked primarily in residential new home construction have made a successful crossover into the areas which are presently benefiting most from the federal funds, namely, transportation and government facilities. Though this migration is not that unnatural for certain construction companies like concrete contractors and engineering contractors, many are stuck searching for small tasks to tide them over in these tough economic times, like building decks and bath remodeling.
One area of stimulus funding which has been particularly successful is affordable housing, with the intent being that the housing agency investments will boost renovation and construction. Florida has received the largest amount for its agency, at $580 million, but recently the U.S. Treasury announced that California would be receiving $284 for its agency. The construction efforts associated with affordable housing will not only provide construction industry jobs to thousands, but will provide secure living situations to the base of the states’ economies. While contractors are grateful for any work presently, projects in the affordable housing sector yield little-to-no profit, and more often than not, actually result in a loss.
jobtrio.com Staff
Construction Industry Newswire
