Richard T. Anderson President, New York Building Congress

• Overall spending estimated to reach $32.9B. — Represents 17% increase over 2013 spending. — Tops 2007 peak in current spending, before adjusting for inflation.

• Residential projected to reach $10.9B, up from $6.8B in 2013.

• Non-residential likely to level off at $7.8B, down from $8.0B in 2013.

• Government expected to increase marginally to $14.3B from $13.4B in 2013.

2014 Construction Spending

RETURNING TO BOOM ERA

2016 Construction Spending

TO TOP $35B

• Largest source of construction activity in NYC over the past 20 years.

• Downward investment trend since 2008 peak.

• Slight upturn to $14.3B expected in 2014.

• Spending expected to drop back to $13.3B in 2015 and $13.6B in 2016.

GOVERNMENT CONSTRUCTION

PUBLIC INFRASTRUCTURE

• City construction spending expected to rise to $7.5B in 2014, after dropping to $7.2B in 2013.

• Environmental and Justice outlays declined while other major sectors rose.

NYC GOVERNMENT CONSTRUCTIONEXPENDITURES IN 2013 AND 2O14

• Priorities shifting to City Operations, Education, and Transportation.

• City’s increasing debt may limit future resources for capital investment in all areas.

• The City's construction market has rebounded nicely since the 2008 recession thanks to an improving economy, increased foreign investment, and continued progress on major public and private sector initiatives.

• The completion of professional sports and entertainment venues contributed to the 2014 decrease in non-residential construction, but it is not expected to negatively impact the strong forecast for 2015 and 2016.

• Recent declines in government spending have been offset by renewed strength in private sector construction.

• The overall health of the City’s construction industry remains dependent upon government work.

• Infrastructure spending on system expansions, new repairs, and upgrades is essential for economic development.

INSIDE THE NUMBERS

• Increase development of new housing at multiple price points, focusing attention on strategic rezonings, stalled construction sites, and streamlining regulatory requirements and processes.

• Identify new sources of dedicated revenue to help fund the MTA’s next five-year capital plan, including removing exemptions to the regional Payroll Mobility Tax.

• Promote innovation and adopt best practices throughout the industry and in government to build smarter, faster, more safely, and more economically.

• Prepare for future economic growth through rezonings, balanced landmarking, incentives, and streetscape investments that encourage further development in areas throughout the five boroughs.

• Ensure that Superstorm Sandy federal relief funding is put to quick and productive use in rebuilding storm-damaged neighborhoods and fortifying vital infrastructure.

RECOMMENDATIONS