Construction: $7 billion statewide: it will be a strong year despite a flattening in the industry.

• Author: West, Gail
• Position: BUILDING ALASKA

Neeser Construction Inc. continues construction of the Anchorage Rental Car Center at Ted Stevens Anchorage International Airport, as pictured here on March 21. The 618,000-square-foot structure will feature a Quick Turn Around facility that includes 12 car washes, 16 fueling stations and vehicle prep stations. Venture Development Group is managing the design and construction of the facility and Koonce Pfeffer Bettis Inc. is the architect on the project.

Defying the state's boom-and-bust history once again, Alaska's construction industry is looking forward to another relatively stable year in 2007.

According to a recently released publication, "Alaska's Construction Spending 2007 Forecast," created for Associated General Contractors of Alaska by the University of Alaska Institute of Social and Economic Research (ISER), the dollar amount of construction anticipated to come online this year exceeds last year's by about 7 percent. The 2006 amount was $6.56 billion, and the 2007 projection is $7 billion.

"The increase is largely due to inflation," said Dick Cattanach, AGC's executive director, "and construction industry employment will essentially be flat in 2007."

Flat, however, is good news for a state with a long record of peaks and valleys.

"It's still going to be a strong year for the industry," Cattanach added.

The construction forecast divides current and upcoming projects into two categories: public and private construction, and estimates an increase in private spending of 15 percent to offset a decrease in public spending of 6 percent.

Public Construction

Public construction includes projects contracted by the state and federal governments. According to the AGC report, projected defense spending will sink by $160 million in 2007 due to the completion of Fort Wainwright's military hospital and the federal government's general slowdown in construction dollars. Included in this projection are all the Corps of Engineers' environmental remediation and civil works projects, such as flood control.

HIGHWAYS

Also included in the public construction forecast are highway projects. ISER's figures show a drop in federal highway spending for 2007 of about $125 million from 2006. One of the big questions in the public arena is the use of funds that have been earmarked in federal legislation for the Knik Arm Bridge and the Gravina Island Bridge to Ketchikan. ISER also predicts, however, an approximate $41 million increase in state funding for road projects to help offset the federal decrease.

AIRPORTS AND HARBORS

Airport and harbor spending is projected to increase by $30 million from last year-to tally $360 million in 2007. Much of that will go into airport construction projects across the state. Anchorage and Fairbanks international airports will see about $110 million in upgrades this year, and the Anchorage Port will see about $36 million in its large-scale expansion project. In addition to the $200 million in federal funds anticipated for these projects, the state will contribute about $10 million to the...