Congressional failure to pass federal aviation legislation is putting roughly 70,000 construction and related jobs at risk by forcing a halt to $2.5 billion worth of airport construction projects, a top construction economist has stated.
The halt of so many airport projects will have economically “devastating” impacts on the industry, the economist warned.
“With so few other construction segments doing well, halting an entire category of federally-funded construction—airport projects—is exceptionally devastating economically for this industry,” said Ken Simonson, chief economist for the Associated General Contractors of America.
“Tens of thousands of construction workers shouldn’t have to suffer because Congress hasn’t figured out a way to work out its differences.”
According to an analysis conducted for the association by Professor Stephen Fuller of George Mason University, the halting of $2.5 billion in construction projects puts approximately 24,000 more construction workers out of work.
Another 11,000 workers in related service and supply businesses are also affected. Additionally, as many as 35,000 jobs will be undermined in the broader economy, from the lunch wagon near the job site to the truck dealership across town.
The FAA was forced to issue “stop work” notices earlier this week following the failure of the US Congress to assure funds.
Simonson said the halt was coming at a particularly difficult time for the nation’s construction industry.
He noted that contractors were suffering through the fifth year of a downturn and that over 2.2 million construction workers have lost their jobs since 2006.
The economist added that one of the few bright spots for the industry has been federal investments in infrastructure and construction.
“Federal investments in infrastructure have kept the floor from falling out from under contractors and their remaining workers,” Simonson noted.