Building Industry Hawaii January 2015 - (Page 58)

Forecasting Construction Activity in 2015 Predictions of industry leaders available later this month T BY DAVID PUTNAM rade Publishing's annual forecast magazine, Construction Preview 2015, features commentary from more than 35 industry leaders from the private sector, the military and state and county offices and agencies. The publication, available in late January, also includes lists of federal, state and county agency projects expected to go out to bid this year. "The construction industry in Hawaii is providing a significant boon to the local economy," says Honolulu Mayor Kirk Caldwell, "and we at the city are working hard to make sure our infrastructure is keeping pace." Overall, dozens of contributors to Construction Preview 2015 provide myriad reasons for optimism in Hawaii's building industry in 2015. Here's an advance peek into this year's edition. Positive Outlook The continuing construction of Oahu's rail system remains a key factor for the health of the state's building industry. At press time, HART issued a statement that the rail project is facing financial challenges and is seeking ways to generate cost savings and yield additional revenues. Equally vital are the International Market Place in Waikiki, redevelopment of Ala Moana Shopping Center, the car rental facility at Honolulu International Airport and others. OVER 25 YEARS OF QUALITY SITE WORK SITE WORK SPECIALISTS! Servicing Oahu and Maui 1176 Sand Island Parkway Honolulu, HI 96819-4346 Phone: (808) 843-0500 Fax: (808) 843-0067 Lic. # ABC-14156 58 | BUILDING INDUSTRY HAWAII | JANUARY 2015 The numbers offer reasons for optimism. Eugene Tian, economic research administrator at the Department of Business, Economic Development & Tourism, reports that "the statewide value of private construction permits increased 15.9 percent during the first nine months of 2014 from the same period in 2013. Residential construction was the one category that declined in 2014, with a 14.2 percent decrease over the same period of the previous year. On the other hand, the commercial and industrial permit values increased by 13.3 percent, and the additions and alterations values increased by 40.2 percent." George Atta, director of the Department of Planning and Permitting, notes that "construction on Oahu continues to show signs of improvement with the city's rail transit system moving forward, as well as the anticipated start of several major projects in the coming months." Atta adds that "the construction outlook is somewhat positive as many major projects, long in the planning stages, have begun, or are about to begin." As the rail goes up so, too, will transit-oriented development near select stations. Local leaders are touting TOD for its potential to infuse more than four times the amount of money into the state'seconomy than the rail's estimated $5 billion cost. State, County Forecast In 2015 the state will continue to invest in infrastructure and facilities through prioritized capital improvement projects (CIPs). In his report, Hawaii Department of Transportation Director Ford N. Fuchigami notes that "the past year saw great progress on many projects statewide designed to enhance air travel, expand our vital harbor facilities and improve traffic congestion on our highways." The DOT has similar projects on the books for 2015. The state will spend $160 million in highway projects in 2015 and $750 million in airport improvements. And the DOT's Harbors Division is planning nearly $442 million in improvements and maintenance projects across the state. On Oahu, major projects include continued construction of the rail system from Kapolei to Ala Moana as well as Hoopili. Other works in 2015 include $70 million in road rehabilitation in the Kaneohe area, $30 million to repave streets in Hawaii Kai and Portlock, a $9 million Beretania Street rehabilitation project and a $6 million downtown Honolulu road rehabilitation project. Additionally, Oahu will see work on the $240 million Honouliuli Wastewater Treatment Plant and the $675 million Sand Island Wastewater Treatment plant. Maui County Mayor Alan Arakawa says that, "overall, 2015 will field a number of construction projects in Maui County involving both government and the private sector." On Kauai, Mayor Bernard Carvalho Jr. says the county "plans to put out $22 million in new projects" in 2015. Military Projects Although money grew tighter in fiscal year 2014, Naval Facilities Engineering Command Hawaii reports that it completed more than $1.3 billion of facilities support for Navy, Air Force, Marine Corps,

Table of Contents for the Digital Edition of Building Industry Hawaii January 2015

Military: Battling Against Attrition
Cement & Concrete Products Industry of Hawaii 2015 Resource Directory
Keeping Hawaii’s Heroes
Forecasting Construction in 2015
An Interview with Dan Grabauskas
News Beat
Datebook
Contracts Awarded and Low Bids
Spotlight on Success: Maui Hyatt Residence Club, Kaanapali Beach
News Makers
New Products
Faces: BIA-Hawaii Installs New Officers
Best Practices

Building Industry Hawaii January 2015