Georgia: Peachy Again? There’s no doubt that 2009 was a tough year for Georgia contractors and design firms. McGraw-Hill Construction estimates the value of new 2009 contracts tallied just $12.2 billion, or 30% lower than 2008’s $17.5 billion—and less than half the amount generated during 2007.
The coming construction season should offer some relief. According to McGraw-Hill Construction, the total value of new Georgia construction contracts should jump by 24% overall and tally $15.2 billion. That’s still a historically modest figure, but likely welcome.
Nonresidential will swing out of its 29% decline of 2009 to improve by 11% for nearly $6.6 billion in new contracts.
That improvement will be due entirely to a 20% surge in institutional projects, such as education and health care. This category should provide more than $4.6 billion in new contracts during 2010, up from 2009’s $3.9 billion.
As is the case for the Southeast region as a whole, however, the commercial and industrial subcategory will decline further. After a 47% falloff in 2009, McGraw-Hill expects this Georgia sector to decrease another 7% for a 2010 total of $1.9 billion. (As comparison, that figure is less than half of this sector’s 2007 total of more than $5 billion.)
McGraw-Hill Construction is more positive about the state’s residential prospects, which it believes should improve by about 15% for a nearly $3.8-billion figure. In 2009, residential contracts in Georgia plummeted 43%, to nearly $3.3 billion, so the projected improvement will still provide only moderate recovery.
Look for the nonbuilding sector to surge significantly, however. McGraw-Hill is projecting a whopping 60% improvement here, for a nearly $4.9-billion 2010 total.
The public works category—which fell 14% in 2009—is expected to escalate 47% during 2010 and deliver approximately $4.3 billion in new contracts.
Electric utilities work will also provide substantially increased opportunities during 2010. Here, McGraw-Hill projects a 317% jump in the value of new contracts, with an estimated $601 million in new contracts anticipated to move forward.
| Millions of Dollars | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Forecast 2009 | Forecast 2010 | 2008-09 % Chg | 2009-10 % Chg |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Construction | 20,208 | 23,907 | 27,516 | 28,895 | 26,762 | 17,530 | 12,243 | 15,212 | -30% | 24% |
| Nonresidential Construction | 5,353 | 6,106 | 7,065 | 7,483 | 9,572 | 8,359 | 5,926 | 6,563 | -29% | 11% |
| Commercial & Industrial | 2,274 | 2,920 | 3,456 | 3,911 | 5,039 | 3,879 | 2,057 | 1,917 | -47% | -7% |
| Institutional Buildings | 3,079 | 3,186 | 3,608 | 3,573 | 4,532 | 4,480 | 3,869 | 4,646 | -14% | 20% |
| Residential Construction | 12,043 | 14,700 | 16,868 | 16,338 | 11,732 | 5,737 | 3,260 | 3,761 | -43% | 15% |
| Nonbuilding Construction | 2,812 | 3,101 | 3,583 | 5,075 | 5,458 | 3,434 | 3,056 | 4,887 | -11% | 60% |
| Public Works | 2,206 | 3,082 | 3,526 | 5,020 | 5,401 | 3,389 | 2,912 | 4,286 | -14% | 47% |
| Electric Utilities | 606 | 18 | 57 | 55 | 58 | 45 | 144 | 601 | 224% | 317% |
