A new study on New York City's institutional construction starts proves what most industry firms already knew: The "meds and eds" sector helped keep many firms afloat during the recession.

The city's public and private institutions initiated $14.8 billion in construction work from June 2008 through May 2013, with the education and health care sectors accounting for 61% and 25% of that, respectively, according to the New York Building Congress's (NYBC) latest study.

The city's total starts during that same five-year period was $77.3 billion, says NYBC, which based its study on McGraw Hill Construction's Dodge data. ENR New York is part of the McGraw Hill Construction group.

The strength of the education and health care sectors through the recession is in line with what numerous industry executives in the tristate region have told ENR New York.

In a recent interview, Bob Mullen, CEO of Structure Tone, said that the health care and renovation markets, in particular, remain strong, with health care benefiting from demand for outpatient facilities in preparation for changes arising from the Affordable Care Act.

As for renovation, "developers are more likely to acquire existing buildings and do a complete renovation right down to the shell rather than buying or leasing a site and building a brand new building," he says. The idea, he adds, is "to turn Class B space into Class A space."

Major health care projects under way include the Bronx Psychiatric Center project, which includes construction of five buildings. The Adult Behavioral Health Center at the site, which broke ground last year, is due for completion in 2015.

The NYBC study includes new construction as well as alterations and renovations, taking the estimated value of each project through its entire construction period. Some 53% of the projects have been ground-up construction of new facilities, with the remainder being renovations and alterations, the study shows.

In the first five months of 2013, institutional starts accounted for a total of $525 million, a slight uptick from the $517 million in the same prior-year period. However, those amounts are off considerably from the $1.1 billion in construction starts for the first five months of both 2010 and 2011, NYBC says.

New Jersey

New Jersey's AGC and BCA to Merge

The Associated General Contractors of New Jersey (AGCNJ) plans to merge soon with its sister group, the Building Contractors Association of New Jersey (BCANJ), says Thomas J. DiGangi Jr., AGCNJ executive director. Both groups are part of the AGC of America and are based in Edison.

AGCNJ focuses on the marine, roads and bridges, utility and other heavy industry sectors. BCANJ serves the non-residential and residential building side and says it is the largest general building contractor and construction management organization in New Jersey.

Tristate

HUD Task Force Issues Rebuilding Strategy Plan

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan issued a 200-page rebuilding plan last month for the regions at high risk of extreme weather events, including those affected by Superstorm Sandy last October.

Donovan, whom President Barack Obama put in charge of the Hurricane Sandy Rebuilding Task Force, says the plan will protect families, small businesses, communities "and the taxpayers' investment in them" from risks posed by rising sea levels and climate change impacts.

The plan encompasses 69 rebuilding recommendations, many of which have already been adopted, said Donovan in an Aug. 19 statement. These include establishing a process to prioritize large-scale infrastructure projects and to map connections and interdependence between them, as well as develop guidelines to ensure all of those projects are built to withstand the impacts of climate change.

It also calls for hardening energy infrastructure to minimize power outages and fuel shortages and to ensure continuation of cellular service.

"These projects will help protect residents and vital public services even when the power goes out."