According to a recent report by the Associated General Contractors (AGC) of America, Louisville has seen a 15% increase in new construction jobs from December 2013 to December 2014. The report by AGC ranked Louisville as 15th in construction job growth. Nearby metropolitan area Nashville ranked 53rd, while Indianapolis and Cincinnati tied at 115th.
The City has added approximately 3,500 new construction jobs during this period. The key factor contributing to this growth is the bridges project, however recent hotel construction in the downtown area also helped fuel growth.
The Commonwealth of Kentucky has also seen improvement in the construction industry. The Bureau of Labor Statistics reports the construction industry as a whole has seen about a 6% increase in employment during this same time frame and expects approximately a 21.4% increase in employment over the next 7 years.
In a separate report issued by AGC, it was noted that construction spending rose in December to a six-year high of $982 billion. Ken Simonson, AGC’s chief economist had this to say about the growth:
“For the first time in nearly a decade there was growth in all three major construction segments – public, private nonresidential and residential. If the President and Congress can work out a way to pay for long-term investments in our aging infrastructure there is a good chance this pattern will repeat in 2015.”
Overall, the growth in new construction and employment will continue to help the U.S. economy rebound from the losses experienced in prior years.
With the bridges project scheduled to continue through late 2016 and additional significant projects planned around the Commonwealth for the remainder of the year, the construction industry future looks bright for the city of Louisville and Kentucky as a whole. Also, as noted in our recent legislative update blogs, there has been some encouraging news from the General Assembly in Frankfort that may also help fuel growth in the Commonwealth.
A Dean Dorton construction industry team member would be happy to discuss implications for your business. For more information, please contact Simon Keemer at skeemer@deandorton.com.