Anchorage Construction Industry in Good Shape for 2001.

• Author: POKORNY, JEFF

Anchorage wrapped up 2000 on a strong note-the higher oil prices of the last half of the year buoyed our economy, and Anchorage ended the year with nearly 134,000 people employed, an increase of almost 6,000 over the December 1999 employment figure. Average employment for the year was around 134,000, an increase of 2,700 jobs over the 1999 average.

Helping to fuel the increase in total jobs has been the ongoing increase in construction activity. This will be the 12th consecutive year of increased construction activity for Anchorage. Although final construction numbers for the year 2000 weren't available by press time, Anchorage should have exceeded the $500 million mark in permitted construction. Prior to last year, 1998 was the best year on record with just over $498 million worth of permitted construction. Through November of last year, permitted activity was $484 million. (December construction exceeded $20 million in 1998 and 1999.) The construction sector ended the year with about 7,500 people employed, an increase of 200 jobs over the 1999 average.

This year should bring more of the same for Anchorage. The Federal Reserve may move off its bias for tightening interest rates, and some people are already forecasting interest rate cuts in the spring and early summer, which should have a positive effect on construction. Factor in a strong summer road construction season and a good construction season in the Bush, and 2001 is shaping up to be another busy year. Here is a sampling of some of the major construction sectors and the forecast outlook in each:

MOA/State Road Construction

The Statewide Transportation Improvement Program, with construction funding figures released in October, shows 2001 will be another strong year in the Anchorage area. More than $114 million in road improvements are slated. Major projects that are scheduled to begin in 2001 include: Dowling Road between Lake Otis and Old Seward: $14.2 million; C Street reconstruction and extension: $6 million; Boniface Parkway between DeBarr and Elmendorf AFB: $4.2 million.

Along with numerous other projects, the improvement program calls for nearly $104 million worth of roadwork in 2002 and $95 million in 2003, for a three-year total of $314 million. The C Street extension is critical to continued growth in the economy--it will open up a large tract of previously undeveloped land in Southwest Anchorage.

Other Anchorage Construction

Work continues on the estimated $230 million...