NYC construction industry generated $66B in 2016: report

Spending hit $42.4B last year, New York Building Congress claims

New York /
May.May 23, 2017 07:00 AM

The construction industry in New York City generated $66.3 billion last year, thanks in large part to a record amount of spending.

A new report by the New York Building Congress adjusts 2016’s total construction spending to $42.4 billion, slightly lower than earlier projections of $43 billion. Still, the figure represents the first time in the city’s history that spending crossed the $40 billion threshold. A majority of this spending — $17.1 billion — was in non-residential construction, which includes office, institutional and hotel projects. Government construction followed with $12.7 billion and then residential with $12.6 billion, according to the report.

The total economic impact is up from 2015, when the industry generated $64.9 billion, and in 2014, when it generated $51.5 billion.

“The bottom line is, the construction industry is on fire,” Carlo Scissura, president of the Building Congress, told The Real Deal on Monday.

But another report released last week highlights the downside of a bustling construction industry. In its annual international construction report, Turner & Townsend noted that the city is one of 24 it classifies as “overstretched” due to high construction and labor costs. The report estimated the average cost of construction to be $354 per square foot, and the average hourly wage for construction workers to be just under $100. The report estimates that construction costs will increase by 3.5 percent in 2017.

Scissura noted that construction has had a “ripple effect” on other industries. The Building Congress estimates that $12.1 billion of 2016’s total construction-related economic output can be attributed to income produced by industry-related services, like those provided by architectural, engineering and legal firms. Another $11.8 billion can be pinned to the “induced impact of construction,” which is indirect spending by construction workers on things like transportation, food, clothing and other “local consumer” products.

(To view a list of contractors in TRData’s companies database, click here)


Related Articles

arrow_forward_ios
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
These are the tallest towers underway in NYC
These are the tallest towers underway
in NYC
These are the tallest towers underway
in NYC
A new competition asks what would houses on Mars look like (Credit: Getty Images, Pixabay)
Architecture’s final frontier: Here’s what houses on Mars might look like
Architecture’s final frontier: Here’s what houses on Mars might look like
Plant Prefab CEO Steve Glenn (Plant Prefab)
Homebuilder Plant Prefab nabs Series B funding, eyes 3rd factory
Homebuilder Plant Prefab nabs Series B funding, eyes 3rd factory
Social Construct's co-founders Ben Huh and Michael Yarne (iStock)
Proptech startup Social Construct shutting down
Proptech startup Social Construct shutting down
Nearly $10M settlement for “cooked” SF condo owners
Nearly $10M settlement for “cooked” SF condo owners
Nearly $10M settlement for “cooked” SF condo owners
Turner & Townsend CEO Vincent Clancy and CBRE CEO Bob Sulentic (Turner & Townsend, CBRE)
CBRE pays $1.3B for 60% stake in London-based project manager
CBRE pays $1.3B for 60% stake in London-based project manager
L&L Holding’s David Levinson and Columbia Property Trust's Nelson Mills with a rendering of 261 11th Avenue (L&L, Columbia Property Trust, Terminal Warehouse)
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...