Fairbanks/Interior construction section sees record year: Fairbanks saw $141 million in new construction during 2004, much higher than in previous years.

• Author: Liles, Patricia
• Position: Building Alaska

Crews working for the Fairbanks-based Denali Mechanical Inc. typically work on Interior Alaska construction job sites between July 4 and Thanksgiving, according to the company's chief executive officer, Bob Cummings.

But this year, he said his crews worked straight through the holidays and into the typically slow winter months, and will likely continue through March or April. "For us, it is unusual," he said.

The level of work for Denali Mechanical hit record highs in 2003 and 2004, Cummings said, and he expects another banner year in 2005, based on information provided to Alaska's construction sector from government agencies funding such work.

"The Corps of Engineers said they will have the largest work load they have ever had (in Alaska) ... that's not just the Air Force and Army, but all phases of the military," Cummings said. "And who knows what private development will do."

2004 A BANNER YEAR

Fairbanks city building statistics also show 2004 to be a record year for new construction, significantly more than previous years, according to Steve Shuttleworth, the city's building officer.

"Within the city of Fairbanks alone, not including the borough, we have more than $141 million in construction," he said. "The average during the last 25 years has been $42 million to $45 million."

Shuttleworth said construction values in 2003 also were higher than the city's average, tallying about $70 million. Within the last 25 years, the largest annual value in new construction work occurred in 1985, and that was $80 million.

Of the $141 million in new construction initiated in 2004, roughly 80 percent came from the private sector, somewhat unusual for the Fairbanks area. "Historically, data indicates that there has been more government and public-sector spending," Shuttleworth said. "That's extremely good news for Fairbanks."

A majority of the new construction work within the city boundaries is commercial development, he added. "The level of residential development is excellent in the borough, but there are not too many places within the city for that type of construction."

Shuttleworth attributes the dramatic increase in new construction spending in the Fairbanks area to several factors, including "very favorable" interest rates and a strong military presence in the Interior.

Increased military activity at Fort Greely has sparked new construction in the nearby town of Delta Junction, creating opportunities for Interior-based construction firms like...