Building Congress predicts slow, continuing recovery.

Leaders surveyed by the New York Building Congress predict a slow but continuing recovery for the design and construction industry in 1995 - with a gradual increase in employment. Public infrastructure construction, ongoing renovations of privately owned buildings and a possible reawakening of the private real estate development market will help the industry as it fights back from recession.

Because of its absence in recent years, the expectation for increased private sector activity stands out. Underpinning all of the optimistic projects is the expectation for ongoing public works-maintenance and development of bridges, water tunnels and roadways.

Richard T. Anderson, president of the Building Congress, said "The Metropolitan Area will see a continued rebound in both public and private sector design and construction activity. The challenge is to coordinate these public and private sector efforts. For example, we should locate new development projects in conjunction with public transportation initiatives such as the Port Authority's proposed rail link from JFK and LaGuardia Airports to Manhattan and the 63rd Street Subway Tunnel to Queensborough Plaza. The Building Congress will be working with government to expand this coordination."

Edward J. Malloy, president of the Building and Construction Trades Council of Great New York and Building Congress vice chairman, said "Even privatesector construction is starting to kick in with several high rises under way in Queens and Manhattan, and a lot of commercial property renovation work taking place north of 23rd Street."

"There is optimism that the Gulf and Western Building in Manhattan will be renovated by Trump as a multi-family property starting in '95," Malloy added. "In addition, barring any unforeseen opposition, we expect that Riverside South in Manhattan and the tennis center in Queens will be under way in 1995. From what I hear, we will see construction activity in all the boroughs next year."

Jerry I. Speyer, president of Tishman Speyer Properties and chairman of the New York Chamber of Commerce & Industry, said "Confidence among private sector developers is increasing and market conditions are creating some additional demands for commercial space. The challenge for New York's business community is to work with city and state government to improve the climate for investment in New York and to find creative ways to encourage new construction and renovation of existing space. The public-private partnership has seen our city through difficult times in the past and we are confident this teamwork will enable us to move forward in 1995."

Peter J. Powers, deputy mayor for operations, said "The policies of this administration - trimming the size of government, improving services, reducing taxes that adversely affect business, and enhancing public safety - are producing job growth and winning New York City widespread recognition as the best place in America for business. As New York City's economy continues to gain strength, the building industry also will realize a solid recovery. Our future is bright, as together we rebuild our city."

John Cavanagh, COO of Morse Diesel International, Inc. and vice chairman of the Building Congress, said "Extrapolations based on what has been implemented in 1994 - the water tunnels, renovation of bridges and roadways, work started on several affordable housing projects - create an upward sloping activity curve, suggesting 1995 will be better for us than '94 or '93. What's missing is construction activity in the private sector, and the outlook here is not optimistic. Without more private construction, it will be difficult for all of our industry to go back to work. Private office development in Midtown might be a possibility. Availabilities here have declined, and there has been talk by some private developers of large tenants needing modern space."

Thomas P. Maguire, president and business manager, Local 15 A, B, C, D, the International Union of Operating Engineers in New York, pointed to the importance of public works for construction industry jobs, with water supply projects in several boroughs - a tunnel in Brooklyn and shafts in Manhattan. Automobile tunnels and bridges are being improved, and $100 million of curb-to-curb street improvements are under way on the West Side of Manhattan involving utility systems and water mains and paving, he added. Another $175 million to $200 million of contracts will be let for renovation of the old Coliseum building into a development with stores on the lower floors and apartments above.

Frederick Devine, president of the New York City District Council of Carpenters, said "The local economy is on the bring of surging, so that we could see the beginning of a full recovery in the New York area next year. This resurgence will be fueled by both private and public sector work and in the private sector we anticipate jobs from the Holocaust Museum and Trump's Riverside South in Manhattan. The Viacom Corporation and Diseney are talking about developing projects in Midtown Manhattan in Times Square. Even the commercial market in the Midtcwn area is tighter now than it was and we are hoping construction will start to move there. It's true that the downtown office market still has heavy vacancies, but in this part of town, many tenants either are moving to more modern space or the owners are improving their existing quarters, and either course requires interior construction and this means work for our members."

Mark Quinn, president of the Regional Alliance for Small Contractors, agrees that the economy and the construction industry "are looking better and that infrastructure work is strong, but these have involved primarily heavy construction jobs and most of our members are not yet doing this type of work. One of the challenges for the Regional Alliance is to identify the small, often minority companies that have the economic strength and resources to penetrate the heavy construction business. The Regional Alliance will then provide services and assistance to them to enable them to bid on this type of work and win those bids."

Lenore Janis, president of the Professional Woman in Construction, believes that "tighter capital budgets for 1995 mean that only the fittest women-owned business enterprises (WBEs) will survive and grow next year.