Construction spending in Alaska this year will be around $7.2 billion, up 10% from last year. Excluding an estimated $200 million in spending attributable to the 2018 earthquake, spending will be $7 billion, up 8% from last year. The increase is primarily due to an increase in petroleum spending which will grow 13% to $2.7 billion and national defense spending which will also grow 13% to $700 million. Although most other sectors will also increase, their growth will be modest, partially due to the continuing recession and uncertainty surrounding the resolution of the state revenue shortfall.

These estimates are from the just released 16th annual construction forecast, prepared by Scott Goldsmith, professor emeritus of economics at ISER, for the Associated General Contractors of Alaska.