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Some Signs Of Life In Construction Industry

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Reporting Ron Jones

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SACRAMENTO (CBS13) — The construction industry in the Sacramento region saw a boost of about 2,500 jobs last month compared to August 2010. It might not signal a construction comeback, but it could be a spark.

“We’re getting a very slight sense of optimism,” said David Higgins, president of HMH Builders.

Translation? Let’s not get our hopes up just yet, but any good is welcome news in this economy.

“Maybe we are turning the corner finally,” Higgins said.

The construction industry in the Sacramento region is feeling a boost in business, up 5 percent since 2010.

“it may not sound like a lot, but it’s a vast improvement from where we’ve been,” said Tom Holsman of Associated General Contractors of California.

Higgins’ company is one of many in the Central Valley seeing some growth.

The three areas seeing an increase in building projects are schools, apartment complexes and hospitals.

Hospitals are experiencing the most because they’re required by law to either retrofit their buildings or even rebuild to meet earthquake safety standards. They’re spending hundreds of millions to get it done.

But where is that money coming from?

“Some of it is just deferred spending that companies had in their pocket and were waiting for the upturn in the economy that they believe it’s time to do these remodels and improvements,” said Holsman.

Tom Waltman of the Sacramento Regional Builders Exchange says municipalities are also finding ways to help contractors save money.

“Any contractor or subcontractor can come through here and determine exactly what needs to be done on the project,” he said. “Elk Grove has reduced their building fees significantly, so it’s made it more possible to build some of these projects.”

Higgins welcomes any kind of positive construction news.

“It’s not a big increase … but again it’s in a positive direction, and for our industry that’s great news,” he said.

View Comments
  • Rick

    yes, every little bit helps, but we are a long way before construction comes back for the home builder. For every new home that was built, 50 people were affected in some way on average. Not so much for commercial buildings. Many more jobs were lost due to the housing industry dying than anything else.

  • Aly

    Hi Ron – As a structural steel manufacturer here in Texas, I’m always trying to keep up with the goings-on of not only the manufacturing industry but also construction. So I’m glad to have found this article! The healthy construction industry is vital to a healthy manufacturing industry and the US economy. Hopefully construction in California, and across the US, will continue to pick up.

    Thanks for sharing! – Aly

  • http://bidclerk1.com Jon

    Hey friend, Pretty good blog. I will post a link on my facebook page.

  • General contractor

    We employ full time residential and commercial drafters that design your visions for your home and business properties. We realized having “in house” drafters, not only helps us obtain building permits much faster but also saves our clients time and money.

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