Not everyone shares the upbeat outlook “There’s not much going on, and we’re anticipating a more difficult 2010 than we experienced in 2009,” says Kevin P. Monaco, executive director of the New Jersey Subcontractors Association in Manasquan, explaining that backlog and work on major projects carried many of his members through 2009. “We think 2010 is when we will see the serious impact of the market collapse and funding pulled back.”

Monaco adds that competition for projects is significant and some firms are taking jobs for cost.

Joel Lizotte, senior vice president of construction management firm Epic Management in Piscataway, N.J., calls the competition fierce, but says the company is still busy making proposals and securing work. The company is building a 1,500-space, eight-level parking garage.

Webb with Skanska adds that the crisis in the financial markets has “minimized” the northern New Jersey market, with limited pharmaceutical projects but some health care and higher education work.

“There’s no sugar coating it,” Webb says. “This is the toughest market I’ve seen in 25 years in the industry. This is a pretty deep trough. Hopefully, it will soon get better, and we’ll start to see positive signs in New Jersey.”

James says that until financial institutions are willing to lend, few new private projects will start.

“People are still worried about the strength of recovery and job creation,” James says. “The lenders are scrubbing the borrower very thoroughly. What is the net worth, global cash flow? What is their experience? Then they get into the individual project. It is very rigorous credit underwriting.”

Laborers are feeling the pinch as well. Lewandowski reports 32% to 40% unemployment in northern New Jersey.

“Construction is generally bad now, and we expect it could be bad for a long time,” Lewandowski says. “Union construction trades are working with their contractors on a new package to keep their contractors competitive. Pay rates, benefits are all being looked at to make it so businesses work, and they hire employees. We realize the market has changed, and we’re changing along with it.”

Although the state authorized more than $3 billion for new school construction, New Jersey did not sell bonds to raise the money, Lewandowski says. He adds, “We don’t have a sense any of that will get done. The new governor is taking a look at everything.”

Monaco hopes the state’s new administration, led by Gov. Christopher J. Christie (R), will streamline permitting and withdraw unnecessary regulations to make the state more attractive to businesses.

Useful Sources:
New Meadowlands Stadium: http://www.newmeadowlandsstadium.com/
Access to the Region’s Core Tunnel: http://www.arctunnel.com/
University Medical Center of Princeton at Plainsboro: http://www.princetonhcs.org/Default.aspx?p=4089&d=3743
Capital Health Replacement Hospital: http://www.usa.skanska.com/Projects/Display-project/?pid=1142
New Jersey Turnpike: http://www.state.nj.us/turnpike/