By Dari Kotzker
NJ Today
The hard hats are on and the shovels are back in the ground. The New Jersey construction industry is starting to see a resurgence of work since the 2008 recession. With more projects, come more jobs.
“We’re seeing a real uptick in construction starts. A lot of that has to do with the season, also it has to do with increased credit that companies can actually borrow money for construction where they couldn’t do that two years ago,” said Laborers International Union of North America Spokesman Rob Lewandowski.
“I think things are picking up a little. The jobs are getting better, and contractors seem to be willing to put more men to work,” said union construction laborer Damian Silletti.
The New Jersey Department of Labor estimates there were 133,000 construction jobs in April 2013, which is slightly up from the previous year. However, back in 2008, there were 167,000. With the economy improving, industry professionals are hopeful they will get back to pre-recession numbers. One sign of growth is in the housing market.
“Mortgage rates are at historic lows. I think the banks are starting to lend again and I think people who were on the sidelines are starting to look,” said Sharbell Development Corporation Senior Vice President Thomas Troy.
Superstorm Sandy did help to spur the increase in jobs. But with construction activity booming throughout the state, some contractors are having a hard time finding skilled tradesmen.
“There’s more work out there in part and I think the other part is a lot of guys who were in the trades when the market virtually shut down, they either moved elsewhere or went into another line business,” said Troy.
The state keeps track of each town’s cost of construction authorized by building permits for both residential and non-residential properties. The top five municipalities are Newark, Weehawken, Jersey City, Teaneck and Lawrence Township.
Last year, Lawrence Township logged a record number of permits and revenues, and the trend is continuing.
“When you’re getting on average somewhere in the $4,500 range for the year and now you’re suddenly up to $2,000 through just past the first four months, that’s a very good sign,” said Lawrence Township Manager Richard Krawczun. “I think certainly the economy is getting better. We also think, particularly here in Lawrence Township, we have some great demographics, we have a great location, we have a great road network that’s conducive to development for commercial activity.”
Labor and construction leaders say besides private funding, public investment like the higher education bond act is another sign of growth for the industry.
“Construction is nowhere near back where it was in 2007. That said, it’s trending in the right way,” said Lewandowski.