Amid a drop in construction employment in Connecticut this year — a puzzling development for some in southwestern Connecticut, given no shortage of cranes poking skyward these days in Stamford, Norwalk and other locales — hiring could be tamped down further in 2018 given an accompanying decline in permits for new housing.
Through the first nine months of the year, the Bridgeport-Stamford region ranked in the bottom 10 percent of the nation for new housing permits as compared to the same stretch in 2016, of more than 350 metropolitan areas tracked by the U.S. Census Bureau.
For single-family home construction, however, southwestern Connecticut is faring better, with a 4 percent increase in permits as of September from a year ago. That still trailed much of the nation, with the region ranking in the bottom 40 percent of population centers.
The outlook for the industry nationally was such to embolden Lennar Corp. to announce this week a $5.7 billion buyout of rival CalAtlantic to form what would be the nation’s largest home-building company, if approved by regulators.
Wondering about 2018 doings
In Connecticut, construction industry employment dropped sharply since June, according to estimates by the state Department of Labor. As of September, builders employed 56,200 people in Connecticut, DOL determined, down nearly 9 percent from last April that represented the sector’s peak employment in 2017. Since then, construction employment has dropped five months running, and is now at the lowest level since July 2014.
Entering November, the employment website Indeed listed just over 1,300 construction jobs in Connecticut, with Hartford leading the state with 175 openings followed by Stamford with 75 and Bridgeport and Norwalk with just over 50 each, and Danbury closer to 40. Many of those positions were for work on projects not involving single-family home construction.
Don Shubert, president of the Connecticut Construction Industries Association, told Hearst Connecticut Media it is unusual to see construction employment numbers drop in the prime of the building season, and that the data could point to “underlying problems in the Connecticut economy” in his words.
While the mild temperatures of much of last winter may have affected the summer employment numbers by allowing builders to get started on projects earlier, Shubert said that would not be the only reason for a decline. He added that a shifting pipeline of intermittent work creates additional problems for contractors, forcing them to cut back staff only to retrain people as work picks back up.
Entering November, Shubert expressed worries there may be fewer people being brought on in 2018, given the current outlook.
“Right now, the industry has plenty of (labor) capacity,” Shubert said. “Some contractors are wondering what they are going to be doing next year.”
When they find the artifacts’
If Lennar and CalAtlantic form a national colossus, Toll Brothers continues to be a major builder of new properties locally, with large-scale housing developments under construction in Danbury and Bethel.
Bethel Crossing, quickly rising near the Danbury border, is Toll Brothers’ only strictly single-family home development in Fairfield County. Ten homes are completed and occupied as construction continues on 15 more houses. Ground is yet to be broken on the remaining units. It will have 71 single-family homes when done.
In west Danbury, near the New York line, The Rivington is a collection of luxury townhomes, condominiums and carriage homes. Toll Brothers is marketing The Rivington as a “New American Village” and the sprawling development includes indoor and outdoor pools, a tennis court and miles of walking trails.
Speaking in August, the CEO of Toll Brothers noted the delays that that can occur between the filing of a construction permit and foundations actually being poured. CLICK TITLE TO CONTINUE
Funds are released for New Lebanon School
GREENWICH — A new building for New Lebanon School is officially a go after the Board of Estimate and Taxation unanimously approved the release of $32 million for the project on Wednesday evening.
Conditions on the money were lifted in a matter of minutes, paving the way forward after years of delays and debate.
“It just goes to show when the town gets together and decides and stays together things will work out,” said BET Chairman Michael Mason.
The project had been held in limbo as the recent state budget process dragged on. The BET had made release of the money contingent on promised state reimbursement being official. Gov. Dannel Malloy’s signature on the budget made it so on Tuesday.
The state budget includes close to 65 percent, or roughly $24 million, of the school project’s total price of $37 million.
The was eligible for reimbursement money because it is being built, in part, to satisfy state mandates that New Lebanon School be in racial balance with the rest of the district. A magnet program at the school is intended to attract students from other parts of Greenwich, but the current building is too small to accommodate the students it already has.
“This is a huge day for the children of New Lebanon,” Board of Education Chairman Peter Sherr said. “It’s long overdue and we’re now moving forward. I think it’s also a big day for all Greenwich schools because we can now move forward with the most important piece of the racial balance plan.”With the funding in place, the New Lebanon School Building Committee set a meeting for Friday morning to finalize several contracts, including one with Gilbane Building Company which would lock the town in to a maximum cost for the actual school construction. As of Wednesday that number was at $30.89 million but Building Committee Chairman Stephen Walko said it was possible it could be reduced prior to Friday.
The $37 million project price tag includes contingency money, and funds for design and other aspects of the project, some of which already has been spent.
The committee got a briefing Wednesday from Gilbane Vice President and Operations Manager Karrie Kratz about the tentative construction schedule. Preliminary mobilization work could begin in mid-November, and surveying on Nov. 27, Kratz said. CLICK TITLE TO CONTINUE
US construction spending up 0.3 percent in September
U.S. construction spending increased 0.3 percent in September as the biggest advance in government building activity in four months offset weakness in other areas.
The Commerce Department said Wednesday that the September gain followed a tiny 0.1 percent rise in August and declines in June and July. Despite a slump in homebuilding this year, economists remain optimistic that the low level of unemployment will soon spark a rebound in sales and construction. The overall economy grew at a 3 percent annual rate in the third quarter, even though residential construction was down for the second straight quarter.
All of the strength in Wednesday's report came from a 2.6 percent increase in government construction with state and local activity up 2.5 percent and federal spending up 3.4 percent. Residential housing showed no increase, while non-residential construction dropped 0.8 percent, its fourth straight monthly decline.
Overall spending was $1.22 trillion at a seasonally adjusted annual rate, a gain of 2 percent from a year ago.
In the non-residential area, office construction was down 1.1 percent and the category that includes shopping centers was down 1 percent.