The Keystone Chapter, Associated Builders & Contractors Inc. (ABC), has released its findings from its 2002 Economic survey. The survey predicts a slow first half of the year, but business will pick up over the second half of 2002.

“Although construction activity may decline slightly during the first few quarters of 2002, approximately 70 percent of our membership is expecting an increase in their annual work volumes. Companies are looking at their backlogs, 47 percent of which have increased since 2001, and the stabling economy as measures of what 2002 will store,” said John R. Zimmer, Keystone Chapter President.

Although the events of Sept. 11 and the war on terrorism make economic predictions more challenging, ABC’s membership is optimistic about what the future holds. According to Zimmer, “Sixty-three percent of our members indicate that they still have the same amount of public works construction, for example public schools, as they did in 2001. This will continue to be a strong sector of the construction economy during 2002.”

Even in this slowing time, the need for expansion is hitting ABC members. Sixty percent of the membership will be making major equipment purchases this year and almost 70 percent of the members indicated that they are looking to hire more employees. “The biggest challenge facing companies today, besides the economy, is a workforce shortage,” said Zimmer. “Our companies are looking to expand, but they run into obstacles when it comes to hiring. There just aren’t as many people looking to get into construction.”

There are other factors that inspire hope for a solid recovery toward the end of 2002. “The positive economic impact of President Bush’s proposed economic stimulus package, low interest rates, and increased consumer confidence give us confidence that our industry will weather the weakness of the construction industry during the first half of the year and bounce back with vigor and remain one of our nation’s strongest economic sectors,” Zimmer said.

Keystone Chapter, Associated Builders & Contractors Inc., represents more than 700 construction-related firms locally and is part of a national federation with 1,700 members in Pennsylvania and 23,000 members in 81 chapters.

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