Georgia: Peachy Again? There’s no doubt that 2009 was a tough year for Georgia contractors and design firms. McGraw-Hill Construction estimates the value of new 2009 contracts tallied just $12.2 billion, or 30% lower than 2008’s $17.5 billion—and less than half the amount generated during 2007.
The coming construction season should offer some relief. According to McGraw-Hill Construction, the total value of new Georgia construction contracts should jump by 24% overall and tally $15.2 billion. That’s still a historically modest figure, but likely welcome.
Nonresidential will swing out of its 29% decline of 2009 to improve by 11% for nearly $6.6 billion in new contracts.
That improvement will be due entirely to a 20% surge in institutional projects, such as education and health care. This category should provide more than $4.6 billion in new contracts during 2010, up from 2009’s $3.9 billion.
As is the case for the Southeast region as a whole, however, the commercial and industrial subcategory will decline further. After a 47% falloff in 2009, McGraw-Hill expects this Georgia sector to decrease another 7% for a 2010 total of $1.9 billion. (As comparison, that figure is less than half of this sector’s 2007 total of more than $5 billion.)
McGraw-Hill Construction is more positive about the state’s residential prospects, which it believes should improve by about 15% for a nearly $3.8-billion figure. In 2009, residential contracts in Georgia plummeted 43%, to nearly $3.3 billion, so the projected improvement will still provide only moderate recovery.
Look for the nonbuilding sector to surge significantly, however. McGraw-Hill is projecting a whopping 60% improvement here, for a nearly $4.9-billion 2010 total.
The public works category—which fell 14% in 2009—is expected to escalate 47% during 2010 and deliver approximately $4.3 billion in new contracts.
Electric utilities work will also provide substantially increased opportunities during 2010. Here, McGraw-Hill projects a 317% jump in the value of new contracts, with an estimated $601 million in new contracts anticipated to move forward.
|Millions of Dollars||2003||2004||2005||2006||2007||2008||Forecast 2009||Forecast 2010||2008-09 % Chg||2009-10 % Chg|
|Commercial & Industrial||2,274||2,920||3,456||3,911||5,039||3,879||2,057||1,917||-47%||-7%|