Mid-year economic outlook July 2013.

• Author: Gallion, Mari
• Position: SPECIAL SECTION: Mid-Year Economic Outlook

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Alaska

Sean Parnell

Governor

We have built a solid foundation of opportunity here in Alaska, with a triple-A bond rating for the state, the lowest unemployment rate (6 percent) since 2007, and a favorable outlook for the coming year. Our tourism sector has recovered and mining is still growing strong, and the More Alaska Production Act will rebuild our energy sector and put more oil back in the pipeline.

Architecture and Engineering

Colin Maynard

Principal

BBFM Engineers Inc.

The engineering industry outlook is for a pretty flat year. There do not appear to be any large upcoming design projects, at least in the vertical construction portion of the industry. The military and other federal agency work has been slowing down, even before sequestration. The State capital budget is significantly lower than a couple of years ago and is mainly for remodel and addition projects. Municipal and school district work seems to be primarily state funded. There are some projects that are bonded but they are of a limited size. Private sector development has a couple of new retail facilities but the work in this area is mainly for remodels and additions.

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Arctic Policy

Nils Andreassen

Executive Director

Institute of the North

With the launch of the Alaska Arctic Policy Commission, there is a significant amount of work being done to assess Alaska's strategic role as an Arctic state; infrastructure needs as they relate to safe, secure and reliable operations; and approach to issues such as research, resource management, and response capacity. This effort is undertaken at the same time a National Arctic Strategy is produced by the White House, which attempts to balance concern for the environment with economic development for the people of the North. Important to both processes is the effort to consult with all stakeholders and to ensure open lines of communication. Alaska can also look forward to Canada's Chairmanship of the Arctic Council and act as a partner during these next two years.

Congressional Delegation

Don Young

U.S. Representative

While the economy in Alaska is showing signs of strength, I am still concerned about the torrent of regulations pouring out of the federal government, many stemming from the Dodd/Frank financial reform and Obamacare. In a time when the economy is still sputtering, and each and every job is critical, the last we need to do is bury businesses who want to hire Alaskans in a mountain of paperwork.

Mark Begich

U.S. Senator

The remainder of 2013 shows a lot of promise. Alaska has one of the lowest unemployment rates in the country and positive economic indicators point to a steadily decreasing national unemployment rate. Alaska's economy continues to grow due in large part to its robust small businesses, strong tourism industry, world renowned fishing industry, and our tremendous natural resource wealth. Alaska saw the first drilling in the Arctic in twenty years this past summer and I hope we can continue to move forward with responsibly developing our vast natural resources. I'm working hard on the federal side to keep Alaska's economy growing and to make sure Washington stays out of the way as much as possible.

Lisa Murkowski

U.S. Senator

There are a great number of oil and gas projects under development across the state, but nearly every one faces roadblocks at the federal level. The permitting process under the current administration is clearly broken. Alaska is a rich state, we all know that, but our economic success depends on our ability to access our resources. Beyond that, we are also facing the reality imposed by sequestration and the impacts it will have on our considerable federal footprint. Alaska's economic well-being is strong--many states would love to possess our fish, our beauty, our resources, our people, and our potential--and I remain committed to fighting against every threat and for every opportunity to build momentum.

Construction: Commercial

John MacKinnon

Executive Director

AGC of Alaska

In spite of reductions in defense spending, the building construction side of the market continues strong, though still below capacity. There continues to be large retail expansion of Wal-Mart, Sam's Club, and Natural Pantry and continued construction of Walgreens and Autozone. New entrants to the market include Cabela's and Bass Pro Shops. Major upgrades to existing facilities are happening with Fred Meyer in mid-town.

Highway work remains strong and very competitive resulting in some very thin margins for many contractors. In all sectors, we continue to feel the benefits of recent state capital budgets.

Construction: Military and Civil Works

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