From the AGC of America: New Study Reveals Economic Impact of Commercial Construction in Greater Philadelphia
Impact totals $6.5 billion in the city of Philadelphia and $13.6 billion across the five-county region over the past three years
Philadelphia, Pa., (July 1, 2016) — As development booms in the Greater Philadelphia area, new research, released today by General Building Contractors Association (GBCA), reveals the true economic impact of commercial construction within the city of Philadelphia and the five-county region of Bucks, Chester, Delaware, Montgomery, and Philadelphia counties. The study quantifies the multi-billion dollar influence of commercial construction activity, which spans investment in new construction and major renovations, the effect on employment and other key areas.
“Take a walk down any street in Philadelphia and it’s easy to see that development is alive and well. In fact, our research shows that new commercial construction starts in the five-county region have reached and surpassed pre-recession levels consistently since 2011,” said Benjamin J. Connors, Esq., president, GBCA. “With an influx of capital investment generating employment opportunities as well as tax revenues for the city and the state, this boom is an economic boon. As we work to perpetuate and grow the positive impact of the industry that we have seen over the past several years, GBCA and our members remain committed to one thing — building with excellence.”
The “Economic Impact of New Commercial Construction and Major Renovation” research study analyzes data from 2013 to 2015 and reveals:
· Commercial construction has had a significant, positive effect on the city and region’s economy. Over the course of three years, commercial construction has generated an estimated economic impact of $6.5 billion in the city of Philadelphia and $13.6 billion in the five-county Philadelphia region.
· Construction activity spurred job creation both directly and indirectly. Specifically, the study found that each year, 27,700 direct, indirect, and induced jobs are supported in the five-county region as a result of commercial construction projects, with direct construction jobs accounting for the majority (63 percent) of employment opportunities. Over three years, employees within construction and affected industries, including healthcare, professional services, retail and dining, waste management, financial services, and more, earned an estimated $5.6 billion in wages and benefits.
· Philadelphia’s growing and evolving population has influenced commercial construction trends. Drawing upon city, state, and national data, the research explores how demographic changes, such as the influx of residents from the New York metropolitan area and the rise of millennials living in the city, are affecting demands for development.
· Specific neighborhoods in Philadelphia have played key roles in the city’s economic development. The study delves into how major building projects in University City, Center City, The Navy Yard, and other areas have helped to develop and shape Philadelphia’s economy.