Construction drops sharply

Commercial building permits down about $70 million

The value of commercial building permits issued by the city of St. Joseph so far this year has dropped by about $70 million, compared to the same period in 2008.

City records show that, as of Monday, the city has issued 104 commercial building permits, valued at about $30.6 million this year. That compares to 97 permits issued during the same period in 2008, valued at about $100.8 million.

City officials cite last year's renovation of East Hills Shopping Center, at nearly $63 million, as a major factor in the disparity. However, general contractors and union workers in town say they have been hurt by a recession in which restaurants and stores are showing reluctance to open new locations, and some big companies are holding off on major renovations and expansions.

One commercial general contractor has laid off several workers. Another says he is staying afloat, but jobs aren't coming up for bid. Local union officials say they haven't seen commercial construction this low since the early 1980s recession.

"It's slow, and it's directly the economy," said Greg Logan, president of the St. Joseph Building and Construction Trades, which represents 1,200 skilled union workers in the area. "There are pockets of places that have work, but it's because most of those projects were started or planned before the economy turned south."

Union workers are looking toward getting work on a $300 million wind farm near King City, Mo. Meanwhile, E.L. Crawford Construction has been able to stave off job cuts through acquiring expansion contracts at Missouri Western State University and Boehringer Ingelheim Vetmedica Inc.

Eric Moore, a project manager, says there is an influx of out-of-town contractors competing for precious few jobs.

"Normally, you'd have five or six general contractors come out for a bid, and right now you're getting 10 to 15," he said.

Brett Hausman, vice president at Al J. Mueller Construction Co., is optimistic that things may soon pick up, especially if lending markets ease up to allow businesses to gain capital. His company has laid off several workers.

"Construction is cyclical," Mr. Hausman said. "I would say there is some stuff out there on the horizon. It's just a matter of picking up a few things here and there to get to that point."

Ahmad Safi can be reached at ahmadsafi@npgco.com.

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