MidAtlantic City Scoop: Construction Starts in Philadelphia
Value of new contracts expected to fall 4% in 2021 after declining 8% last year
Residential contracts are forecast to rise slightly, while non-residential and non-building sectors weaken.
City Grill
Greg May
Pennsylvania Office Leader, Vice President
HNTB Corp.
While “reduced revenue and ridership stemming from COVID-19” is challenging, May says that “state of good repair backlog continues to grow” but could be “bolstered by potential significant federal funding prospects.” President Joe Biden announced the framework of a $2-trillion stimulus on March 31, including hundreds of billions of dollars for infrastructure work. The bill, along with the “prospect” of a surface transportation reauthorization later this year, has the “potential” to create a “significant uptick in the overall transportation market,” May says. He warns “that ongoing state and local transportation-funding shortfalls present a serious and ongoing challenge.”
Transportation agencies are looking at technologies and alternative financing and delivery methods, he says, while also “focusing on safety, equity and good stewardship of public funds.”
A slowing in capital programs has “stretched many companies,” forcing design firms to improve operations and trim overhead costs “while working to access and consume more of their backlog to keep their workforce going,” May says.
