Construction industry way off
September 25, 2009
Park City’s construction industry, with a third of the year left, remained well off the pace of 2008 through the end of August, reflecting the steep drop that the industry has suffered in the recession.
According to the Building Department, the year-to-date value of construction in the city sat at $55.1 million at the end of the month. In the previous year, the figure through the same period was $128.6 million.
Chief Building Official Ron Ivie has long cautioned that the numbers in 2009 could fall dramatically from last year, when the recession’s effects did not have a significant impact until late in the year, past the time when much of the construction occurs.
In August, the Building Department issued 70 permits valued at a combined $2,744,383. The value fell from the previous month, when $6.8 million worth of construction received permits, and from the same month the previous year. In August 2008, the department issued 115 permits worth a combined $7.8 million.
Contractors were busy in August with alterations and additions, with those categories, typically not as valuable as new construction, accounting for nearly all of the permit value of the month.
The department did not issue a permit for a new building in August.
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Meanwhile, the number of electrical, plumbing and mechanical permits issued in August was mixed compared to the previous month and the same month in the previous year.
The number of inspections conducted by the Building Department in August, 273 per day, was up slightly from the month before and from August 2008.
The construction industry posted record-setting years in the past decade, but the numbers this year will likely be similar to those recorded before the boom years of the 1990s.
The 2009 numbers remain buoyed by a high-dollar permit obtained early in the year for work at the Montage in Empire Pass. It was valued at nearly $26.9 million, or nearly half of the value of the construction that has received permits this year.