November 07, 2017
Construction spending is on the rise, mostly in hotel and office-related projects, and construction jobs are being added into the market, both locally and nationally, said Dr. Anirban Basu, Chairman & CEO of economic firm Sage Policy Group, Inc., and the keynote speaker for the Third Annual South Louisiana Construction Economic Forum, "Presenting: The Future of Construction in Louisiana," held Thursday, Nov. 2, at L’Auberge Baton Rouge.
The forum was produced by the Construction Financial Management Association and the Pelican Chapter, Associated Builders and Contractors, and the presenting sponsors included: Taylor Porter, Hannis T. Bourgeois, and Regions Bank.
The annual forum was kicked off by James Benham, chief executive officer of College Station, Texas-based JBKnowledge, Inc., and his presentation, "Construction Disruption: How Drones, Sensors and Integrated Apps are Rewriting All of the Rules." Benham was followed by Don Pierson, secretary for Louisiana Economic Development, and his presentation, "Critical Integration: How Partnerships Are Driving Louisiana's Growth."
Basu then concluded the forum with, "Markets, He Wrote: Looking for Clues into the Economy's Direction." Basu, who is the chief economist to Associated Builders and Contractors and chief economic advisor to the Construction Financial Management Association, reported that over the last three years, hotel-related construction spending is up about 77 percent and office-related construction spending is up 55 percent. In addition, Louisiana ranks second in the nation in construction jobs added, September 2016 to 2017, with 14,700 jobs added, an increase of 10.6 percent, second to California's 44,600 jobs and 5.7 percent increase. In total, 36 of the 50 states have added construction jobs over the last year. In Baton Rouge, the construction industry topped the list of added jobs at 4,600, followed by Leisure and Hospitality at 3,000; and Education and Health Services at 2,800.
It was recently reported in economist Dr. Loren Scott's release of his 2018 and 2019 "Louisiana Economic Outlook" that Louisiana's recovery will be bolstered by a slightly faster growing national economy, low inflation, and only a slight increase in interest rates. Louisiana, according to Scott's report, is expected to add 12,000 jobs (+0.6 percent) in 2018, and 22,300 jobs (+1.1 percent) in 2019. There have been $15.9 billion in announced industrial expansions in the Baton Rouge MSA since 2012.
Taylor Porter Partner and Construction Practice Group Leader Ted Laperouse serves as President of the South Central Louisiana Chapter of the Construction Financial Management Association. Taylor Porter’s construction lawyers routinely represent and advise local, state and national construction industry leaders, including owners, general contractors, subcontractors, homebuilders, architects, engineers, material and equipment suppliers, and manufacturers.
Click here to read more about Taylor Porter's construction practice