Public works, housing work to boost construction firms

The construction industry in northern Nevada doesn't expect to crank things up much farther in 2005 than 2004 but that's probably not a bad thing.

The industry already is running close to full bore as residential and commercial projects sprout from Fernley to Stead to Gardnerville.

Some stresses are apparent.

In November, the state reported that construction employment in Washoe County totaled 20,100 an increase of more than 12 percent in just a year.

That makes construction, which already accounts for more 9 percent of the region's employment, the fastest growing sector of the economy.

A big issue for the industry through 2004 was finding enough qualified workers to handle that growth, and the question is likely to bedevil industry officials again in 2005.

Rising costs of construction materials including lumber and cement also are likely to trouble the industry once again.

Construction company executives in the region project that 2005 will continue to see a continuation of the strong market, says John Madole, executive director of the Associated General Contractors Nevada Chapter.

"It' been an above-average year," he says.

"It looks like we're in pretty good shape going into 2005."

The industry is hitting on all cycles.While one major public works job the downtown events center wrapped up work this month, transportation projects will continue to take priority.

The ReTRAC project that will lower train tracks 33 feet below grade through downtown Reno will continue through 2005.

Although the first trains are scheduled to roll through the trench before Thanksgiving, other work such as landscaping will continue in 2006.

The $53 million Spaghetti Bowl project at the center of Reno will continue into this autumn.

The $70 million Carson City Bypass project continues into 2006 as does the $80 million contract to build bridges for the new route of Highway 395 between Mount Rose Highway and Washoe Valley.

Housing construction will remain hot, with some observers estimating housing starts will run about 10 percent above this year's already accelerated levels.

(See story, page 1).

Construction of office buildings, however, is likely to slow, says Dominic Brunetti of Colliers International.Vacancy rates are rising in big office buildings, he says, dampening enthusiasm for additional building.

More than 1.6 million square feet of major retail centers are expected to be built in the region next year including Sierra Summit and Sparks Galleria.