Association News

The Associated General Contractors of America (AGC), based in Arlington, Va., has released a new plan titled "Build Now for the Future: A Blueprint for Economic Growth." In a news release, the organization says the plan is "designed to revive the hardest hit sector of the economy, the nation’s construction industry."

"The problems facing the construction industry aren’t just devastating construction workers, they are crippling our broader economy," says Stephen Sandherr, the association’s chief executive officer. "Simply put, you can’t fix our economy until you fix the construction industry."

The recovery plan features a mix of new incentives, tax cuts, policy revisions and infrastructure investments that Sandherr says are needed to combat the dramatic decline in construction activity and employment taking place nationwide. He adds that an analysis of federal employment data conducted by the AGC found construction employment declined in 324 of 337 metropolitan areas between August 2008 and August 2009.

Sandherr says that even those communities that avoided declines in construction employment had little to celebrate. Taken together, the 13 areas saw a total increase in construction employment of 2,800 people. During the same time, the industry lost 1 million jobs, Sandherr adds.

The recovery plan’s primary focus is on stimulating new private-sector construction activity, which accounts for 70 percent of the market, Sandherr says. The plan calls for repealing the alternative minimum tax and increasing and extending a series of tax credits and cuts to boost investments in real estate development.

Sandherr adds that new incentives on global investment in real estate are needed to make it easier for international investors to put Americans back to work. He also recommends that Congress restore the president’s "Fast Track" trade promotion authority and remove trade barriers to boost demand for new domestic manufacturing and shipping facilities.