Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/426956
EquipmentWorld.com | December 2014 11 reporter | by Equipment World staff T he morning after Republicans won back the Senate, Ken Simonson, chief economist, AGC of America, said that conservative majorities in both houses of Congress are unlikely to spend mon- ey to improve the country's infrastructure. Nonethe- less, private construction will be robust – growing at 6 to 10 percent per year this year and for the next two years, he said. Most of the boom in construction can be attributed to the resurgence of America's oil and gas business created by fracking and horizontal drilling, the prepara- tions for the Panama Canal opening in 2016 and strong demand for multi-family housing, Simonson added. Oil and gas Simonson said the so-called "shale gale" has its biggest impact up and downstream from the actual drilling activ- ity. This includes the businesses and equipment support- ing the industry including earthmoving and site prep, sand quarries, pipe fabrication, petrochemical plants, compressors, pumps, railcars, trucking and processing facilities. Panama Canal While there are no U.S. fi rms doing construction on the Panama Canal, 16 U.S. ports are undergoing signifi cant expansions and upgrades to be able to handle the Panamax ships, Simonson said. These will start coming through the expanded canal in 2016, holding four times the cargo as held by previ- ous ships. The ports of Miami, New York, New Jer- sey, and Long Beach alone have spent more than $1 billion each in preparation for the bigger ships and increased cargo volumes. Construction to boom for the next two years: AGC economist 'Shale gale,' ports and multi-family the big winners; roads and bridges to struggle The sitework and services surrounding the fracking and horizontal drilling operations in the new oil patch have created a boom in construction.