The federal stimulus program isn’t saving many construction jobs in Tennessee, according to a new industry survey. Only 14 percent of respondents from the Association of General Contractors said the stimulus has helped them retain staff that would otherwise be laid off. Nearly three-quarters said they had to let employees go in 2009.
The survey shows more than 60 percent of Tennessee contractors have not received a stimulus-funded contract. That doesn’t mean they aren’t trying to get one. Kelly Dando directs the Middle Tennessee Chapter of the Association of General Contractors. She says competition for public projects is stiff.
“That’s an understatement. They’re having to bid against so many more companies now, but with that said, they’re having to go after anything they can get because it’s so bad right now.”
Dando says public projects are just about the only ones that will reliably pay right now. She says firms who specialize in vertical buildings like condo towers are turning to the federal government for the first time.
“Instead of doing it for an owner/developer, they’re doing it, for example, for the Corps of Engineers.”
Half of the surveyed contractors expect more stimulus money to be available this year for road projects. Only a quarter anticipate more stimulus funding for general construction.
Just 5 percent of contractors in Tennessee expect the construction market to grow this year. Nearly two-thirds of respondents say it will be 2011 before building picks back up. Until then, many contractors are competing for stimulus-funded projects.
Aside from stimulus funded projects, Dando says one of the few bright spots in Nashville is the newly-approved downtown convention center. Construction should begin early this year and is projected to provide employment for 2,500 construction workers.
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