Missouri's transportation department unveiled plans on May 5 for dramatic cost cutting measures that will trim 1,200 staff positions, or 19% of its workforce. The department also will close 135 facilities and sell 740 pieces of equipment. The agency's five-year, $1.2-billion budget is being halved to $600 million due to severe revenue shortfalls. The reductions will create an estimated $512-million onetime savings as well as $117 million in long-term annual savings. The proposed program is “a matter of survival,” says state transportation director Kevin Keith. The cuts will scale back department facilities by 40% and reduce its equipment fleet by
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.