Idaho construction industry expects little growth in 2013

Published: January 14, 2013 

Idaho construction employers told a national group that they expect little growth in spending and hiring in 2013. Most also predicted the construction market will grow starting in 2014 or later.

Between 42 percent and 67 percent of the construction industry members who answered an Associated General Contractors of America survey said they expect no change in the amount of project funding they'll be able to compete for this year in high-demand areas like transportation, water and sewer, hospitals, education and public buildings.

But others were optimistic. Between 7 percent and 31 percent look forward to more project dollars up for bid this year in those areas.

About twice as many construction employers said they plan to hire in 2013 than lay off workers. Most of the 14 percent who plan to do layoffs said they'll cut five or fewer jobs.

Meanwhile, their costs are getting higher, and about 30 percent of companies plan to adjust their bids to make a larger profit this year.

Health insurance costs for construction employees were higher in 2012 and will continue to rise in 2013 for about two-thirds of the companies that responded.

The cost of materials went up last year for all but 10 percent of the respondents. Almost all said construction materials will cost at least as much this year.

About one-quarter of Idaho's construction industry members also plan to invest in their IT department this year, with most planning to invest $10,001 to $50,000.

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