City Grill

Mark Phillips 
Alaska Area Manager
Granite

Contractor capacity is very high in Alaska and exceeds the amount of available funding and projects, Phillips says.  

“State and local agencies, federal government and private owners are pushing hard to get projects on the street for contractors as quickly as possible as funding becomes available,” he says. Thus far, many expected projects have been delayed due to wider factors such as inflation and labor shortages.

Contractors are hopeful for an uptick in project lettings beginning in 2023 as funds from the IIJA and other federal programs begin to have an impact.

“Funding is making its way to state and local agencies, and it is a matter of time before it will result in additional lettings,” he says. The hope is that once that trend begins, it continues through the next several years.

Still, the issues that have beset the overall industry remain a concern locally. “As everywhere in construction, finding and retaining skilled labor for all aspects of the work—project inception through construction—continues to be an issue,” he says.