Summer construction bonus: defense and stimulus money means more projects.

• Author: Bohi, Heidi
• Position: SPECIAL SECTION: BUILDING ALASKA

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There are two seasons in Alaska: winter and the construction season.

As the 2010 building frenzy gets under way this month, between now and mid-October, weather and daylight are just two factors helping some of Alaska's top commercial and institutional construction companies complete some of the state's biggest projects, also comprising the bulk of their annual work.

In addition to Mother Nature's cooperation, many of these larger companies report they are entering the season with an added advantage: jobs resulting from American Recovery and Reinvestment Act (ARRA) money, commonly referred to as stimulus funds. At a time when the country anxiously awaits news of base closures nationwide, this is one sign the government is continuing to invest in the long-term future of armed forces based in Alaska, critical for sustaining communities such as Fairbanks where the economy is dependant on the military. Of the estimated $929 million slated for Alaska, more than half is going to capital improvements, including $197 million to Department of Defense programs and projects, and $49 million to the U.S. Army Corps of Engineers.

BIG BUSINESS

Construction is Alaska's third largest industry, pays the state's second highest wages, and employs about 21,000 workers, with an annual payroll of more than $1 billion, accounting for 20 percent of the state's economy. Although construction continues year-round, even in Alaska, for about 500 companies that bring in annual receipts of $2.1 billion, a quick drive around communities in the state's primary construction centers--Anchorage, Kenai Peninsula, Ketchikan, Kodiak, Fairbanks--are a reminder the summer construction season is when a lot of Alaskans rely on the industry to earn the biggest share of their annual wages.

For every $1 million spent on construction, it is projected 10 to 15 jobs are created, and many of this season's projects range between $20 million and $40 million.

"As we have seen in the past, a late spring, early winter, or a plain lousy summer can make a big impact, and any two or more of these can cause a lot of hurt to projects and peoples' wages," says John MacKinnon, executive director of the Associated General Contractors Alaska.

This is why heading into the 2010 season with the ARRA advantage and increased government spending the industry is giving extra thanks to the construction gods. All in all, MacKinnon says, Alaska is better off than the rest of the country: while the other 49 states and the District of Columbia report declines, Alaska shows an increase in construction employment resulting in 100 new jobs.

A sampling of the season's projects follows.

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