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 Construction activity within the Upper Valley
remains strong as we enter into 2006. While it may
be difficult to predict overall growth for the year
ahead, it is easier to forecast continued momentum
in certain segments, including residential and
commercial building. Local real estate developers
and investors surely appreciate what the U.S. Census
Bureau research indicates; places like Lebanon and
Hanover possess a number of key demographics and
economic characteristics that make them attractive
for high-technology based entrepreneurship and
venture investing. Additionally, there is a
well-documented need for residential housing units
throughout the Upper Valley.
I suspect that for many industry participants, 2005
was a very productive year, but in terms of volume,
closer to historic averages. The general economy has
been quite robust for a few years now. For some, the
moderate pace of business activity in 2005 may be
the result of processes associated with the
permit/building approval process. Preconstruction
planning for many of today’s sophisticated building
projects can be quite demanding and time consuming.
Subsequent delay in a building schedule is not
unusual; particularly for work involving federal or
state funding. While contractors pursue steps to
help clients alleviate preconstruction challenges,
they may recognize a need to redeploy their assigned
project personnel as a result of the delays. During
this Preconstruction period, companies with broad
resources, work experience and skilled personnel may
become engaged in separate building activity,
perhaps meeting smaller-scale project requirements
of residential and commercial customers. Anyone who
has tried to hire a tradesperson during the last few
years can attest to the fact that such individuals
are ‘as busy as they want to be.’
What is in the construction pipeline for local
participants? A number of larger residential
projects have moved through the preconstruction
channel and are ready to move into the construction
phase. Multi-family, assisted-living/retirement, and
custom home construction projects will soon dot the
local landscape. Where the scale and volume of
residential projects is increasing, we are likely to
see commercial building activity continue, but to a
lesser extent. Renovation work is likely to increase
within both residential and commercial arenas.
We expect that institutional building construction
will remain steady in the year ahead, including
school construction and renovation, and municipal
projects (such as maintenance garages, public safety
facilities and administrative offices).
As we enter 2006, the availability of general labor
is less of an issue. But a lack of available skilled
labor is still a concern. Many contractors, with the
help of groups like Associated Builders and
Contractors and Associated General Contractors,
continue to offer training programs. Unfortunately,
as experienced personnel are lost to retirement, the
industry suffers.
The good news is that building activity within the
Upper Valley is expected to remain vibrant through
2006. Future requirements for housing and commercial
space will likely continue to increase at a healthy
pace, bridled by the appropriate demands of sound
planning and zoning considerations.
Sincerely,
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