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Construction Suffers First Lull in 9 Years

BURBANK, CA-In Nov. of 2001 construction activity totals reached $3.86 billion, and for the year the estimate is $61.51 billion, down 2.97% from 2000. The forecast for 2002 is $57.45 billion.

By Peter Landau | Updated on January 03, 2002

BURBANK, CA-Is the party over for the construction boom in California? Things look grim, according to the Construction Industry Research Board (CIRB), which has been compiling monthly statistical data on construction for the past 28 years. In Nov. of 2001 construction activity totals reached $3.86 billion, and for the year the estimate is at $61.51 billion, down 2.97% from 2000.

The projected construction total for the year 2001 represents the first annual decline in the past nine years when the 1993 recession low totaled $38.84 billion (adjusted for inflation). That nine year period also charted a 71% increase in employment in the construction sector, from 445,700 in 1993 to an estimated record average of 762,100 in 2001. This denotes a 316,400 monthly job increase during the nine-year period.

The forecast for 2002 is not rosy. Total construction is projected at $57.45 billion, down $4 billion from 2001, a 6.6% decrease, according to Ben Bartolotto, director of the CIRB. He estimates a further dip in 2003, to $57.32 billion, down 0.2% from 2002.

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