State construction spending expected to drop 18 percent

ANCHORAGE — A newly released report from the University of Alaska projects a significant drop in state spending this year on the construction industry.

The annual report from the university’s Institute of Social and Economic Research presented to the Associated General Contractors of Alaska and the Construction Industry Progress Fund says construction spending in 2016 is expected to drop 18 percent from last year to $7.3 billion, The Alaska Dispatch News reported.

The report also shows that oil and gas construction spending, which hit a record-high last year at $4.2 billion, could decline about 25 percent. The expected decline in that sector is also connected to the completion of several projects. All other types of construction spending are predicted to decline 11 percent overall.

The expected decline in spending on Alaska’s third-largest industry is largely due to the drop in oil prices over the last 18 months, the report stated, “after the previous period of unprecedented high prices a few years earlier.”

A recent decline in state funding for new capital projects this year will also cause construction spending to go down “in many communities like Juneau, Kodiak, and Fairbanks (excluding Eielson Air Force Base),” according to the report.

Public construction spending is set to decline 6 percent, while private spending is expected to drop 24 percent. Spending for national defense construction and basic private spending are predicted to increase by 27 percent and 39 percent, respectively. The basic private industries include tourism, seafood, air cargo and timber.


Information from: Alaska Dispatch News,

More in News

(Juneau Empire file photo)
Aurora forecast for the week of April 15

These forecasts are courtesy of the University of Alaska Fairbanks’ Geophysical Institute… Continue reading

A waterfront view of Marine Parking Garage with the windows of the Juneau Public Library visible on the top floor. “Welcome” signs in several languages greet ships on the dock pilings below. (Laurie Craig / For the Juneau Empire)
The story of the Marine Parking Garage: Saved by the Library

After surviving lawsuit by Gold Rush-era persona, building is a modern landmark of art and function.

A troller plies the waters of Sitka Sound in 2023. (Photo by Max Graham)
Alaska Senate proposes $7.5 million aid package for struggling fish processors

The Alaska Senate has proposed a new aid package for the state’s… Continue reading

Current facilities operated by the private nonprofit Gastineau Human Services Corp. include a halfway house for just-released prisoners, a residential substance abuse treatment program and a 20-bed transitional living facility. (Gastineau Human Services Corp. photo)
Proposed 51-unit low-income, long-term housing project for people in recovery gets big boost from Assembly

Members vote 6-2 to declare intent to provide $2M in budget to help secure $9.5M more for project.

Members of the Alaska House of Representatives watch as votes are tallied on House Bill 50, the carbon storage legislation, on Wednesday. (James Brooks/Alaska Beacon)
Alaska House, seeking to boost oil and gas business, approves carbon storage bill

Story votes yes, Hannan votes no as governor-backed HB 50 sent to the state Senate for further work.

(Michael Penn / Juneau Empire file photo)
Police calls for Tuesday, April 16, 2024

This report contains public information from law enforcement and public safety agencies.

An illustration depicts a planned 12-acre education campus located on 42 acres in Juneau owned by the Central Council of the Tlingit and Haida Indian Tribes of Alaska, which was announced during the opening of its annual tribal assembly Wednesday. (Image courtesy of the Central Council of the Tlingit and Haida Indian Tribes of Alaska)
Tribal education campus, cultural immersion park unveiled as 89th annual Tlingit and Haida Assembly opens

State of the Tribe address emphasizes expanding geographical, cultural and economic “footprint.”

In an undated image provided by Ken Hill/National Park Service, Alaska, the headwaters of the Ambler River in the Noatak National Preserve of Alaska, near where a proposed access road would end. The Biden administration is expected to deny permission for a mining company to build a 211-mile industrial road through fragile Alaskan wilderness, handing a victory to environmentalists in an election year when the president wants to underscore his credentials as a climate leader and conservationist. (Ken Hill/National Park Service, Alaska via The New York Times)
Biden’s Interior Department said to reject industrial road through Alaskan wilderness

The Biden administration is expected to deny permission for a mining company… Continue reading

Most Read