The new year will not be good for the construction industry if a new forecast from the Associated General Contractors of America predicting about two-thirds of companies expect to cut jobs in 2009 proves to be correct.
The group's New Construction Employment and Business Forecast finds that about 67 percent of non-residential construction companies intend to cut payroll this year which will result in a 30 percent drop in the number of construction workers.
However, the forecast finds that a stimulus package from President-elect Barack Obama would be likely to improve the outlook for the construction industry.
According to the forecast, companies would increase their payroll by 25 percent if a stimulus package included investment into the nation's infrastructure and add $500,000 in new equipment if they were to acquire work from a stimulus plan.
According to the association's CEO Steven Sandherr, a stimulus plan will be the major factor to increase construction jobs in 2009.
"With a stimulus, construction companies can get more people to work and more money into the economy in a way that will immediately boost our economy," he said. "Without a stimulus, construction companies will cut jobs, slash spending and continue to be among the hardest hit sectors within our economy."
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