Third Annual Report for the Construction Industry Progress Fund and the Associated General Contractors of Alaska

Total construction spending in Alaska in 2006 will be $6.525 billion, an increase of 13% from a revised figure of $5.755 billion in 2005. This is the amount of money that will “hit the street” for construction during the year. Because of increases in the cost of materials during 2005, industry employment and other measures of activity will not expand as much as spending, but 2006 will be another very strong year for the construction industry with some sectors, most notably education, up sharply from 2005. Uncertainty in the forecast for 2006 comes from the likelihood that material prices will continue to be volatile due to strong demand. This may negatively impact some major projects, as was the case in 2005. For example the Alyeska pipeline reconfiguration project was originally scheduled for completion last year, but cost overruns (and possibly other factors) caused total spending to increase substantially and the estimated time for completion to be moved into 2006."Associated General Contractors of Alaska; Construction Industry Progress Fun