Building Industry Magazine - January 2013 - (Page 45)
Construction Preview Highlights
BY AIMEE HARRIS onstruction Preview 2013 is Building Industry magazine’s annual forecast. It includes commentary and predictions from many state and industry leaders, along with lists of projects expected to go out to bid this year by federal, state and county agencies. Here’s a sneak peek at what you will find when you receive the publication later this month.
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In 2013, the private sector will be essential to construction industry job growth. Statewide private building permits have expanded for three consecutive quarters, the first time this has happened since 2006, UHERO reports. Laney says that the recent surge is mostly due to high-rise condos in Kakaako and non-residential activity in shopping center development and resort-related activity. The overall growth is encouraging.
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Are you feelin’ good yet?
Throughout the new Construction Preview 2013, industry leaders dropped ear-raising words and phrases such as—uptick, upturn, looking up, robust recovery, rebound and light at the end of the tunnel. Hawaii’s tourism industry powers on and now, at last, there are other economic bright spots, says First Hawaiian Bank. The bank notes that construction permit growth, a housing market on the mend, retailing strength and growing auto sales are all cause for cautious optimism heading into 2013.
New Neighbors
There may even be signs of life in residential building. With a positive mood with the economy, Hawaii may be readying itself for the next home-building cycle. This is supported with a combination of plans underway—high-rise communities, transit-orientated development and a West Oahu boom—all of which suggest new building of homes and businesses. “I believe confidence with homebuilders is gaining momentum and that bodes well for not only the real estate market, but the entire community,” says Ken Laughlin, president of Hawaii Lumber Products Association (HLPA). Jiro Sumada, the acting director of the City & County Department of Planning and Permitting, agrees. “We believe [transit-orientated development] plans will ultimately result in thousands of new homes, both market-priced and affordable rentals, within the transit corridor,” he writes.
“The toughest issues facing our city revolve around our aging infrastructure,” Caldwell notes. “Unless we invest in new infrastructure today, our economy will stagnate.”
Pending Politics
There are several sensitive market influences that can affect the industry, of course, but some of the more conservative forecasts are due to the uncertainty in Washington, D.C. Wayne Kawano, president of Cement and Concrete Products Industry of Hawaii (CCPI), explains that we are all working under the assumption that the fiscal cliff crisis has been averted, and that Congress is resolving this important issue. “Despite ongoing efforts, uncertainty will always characterize the near-term economic outlook and hold back stronger growth conditions,” writes Kawano. “Cautiously, our forecast remains relatively ‘flat and level,’ with hope of a boost in late 2013 or 2014.”
On The Job
Throughout this recession, construction has been one of the biggest lagging sectors. It’s had to emerge from a deep slump at the height of the recession. Leroy Laney, economic advisor to First Hawaiian Bank, points out that construction jobs are still 27 percent below the 2007 peak. However, there have been tentative signs of a trend reversal recently, according to UHERO (The Economic Research Organization at the University of Hawaii). In August, construction job counts were more than 6 percent higher than in November 2011. “We think prospects are very positive going forward, with pending improvements in private building activity poised to offset the adverse impact of delayed rail construction,” UHERO states.
New Year—Fresh Outlook
As we begin the New Year, Kauai Mayor Bernard Carvalho Jr. is hopeful that the somewhat brighter outlook predicted for Hawaii’s construction industry by some forecasters will become reality. He says, “Being a perennial optimist, words spoken in a positive light, such as the following quote by motivational speaker Denis Waitley, are what inspire me:” Don’t dwell on what went wrong. Instead, focus on what to do next. Spend your energies on moving forward. BI
Capital Investments
Across the board there is interest in seeing the city fast-tracking capital improvement projects to stimulate the economy, says Mayor Kirk Caldwell, especially at a time when interest rates are historically low. The city is involved in two of the largest public works projects in Honolulu history: rail and a complete upgrade of our sewer system.
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Table of Contents for the Digital Edition of Building Industry Magazine - January 2013
Contents
FEATURES
STARSCRAPERS IN PARADISE
CONSTRUCTION PREVIEW HIGHLIGHTS
MILITARY
NEWS BEAT
ABC honors best merit shops
Safeway opens doors in Ewa Beach
RCAH elects new officers
Black Construction honored in Guam
Nan, Inc. acquires KKCC
DEPARTMENTS - Editor’s Corner
Datebook
Spotlight on Success: UH Cancer Center
Contracts Awarded
Low Bids
Concept to Completion: Sports Authority, Hilo
Best Practices
New Products
Building Industry Magazine - January 2013
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