Dive Brief:
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Hawaii issued 183% more commercial and industrial building permits in the first half of 2015 than during the same timeframe last year, according to a report by the state Department of Business, Economic Development and Tourism.
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The number of residential permits, by value, was up by 96%, the agency’s third-quarter report noted. At the same time, permits for additions and remodeling dipped by 20%. Still, the total value of private building permits issued during the first half of the year increased by 36.6%.
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The value of government contracts awarded by the state skyrocketed by 103%, the report said.
Dive Insight:
Government analysts who authored the report predicted more of the same in the year’s final months and into 2016.
The booming construction industry is in step with the state’s healthy economic growth. The analysts forecast real GDP growth of 1.9% for 2015; 2.3% for 2016; and 2.4% in 2017 and 2018.
As with other cities enjoying a building boom, contractors in Hawaii have reported that they can’t hire enough skilled workers to fill the jobs created by increasing demand for construction.
The state’s construction industry added 400 jobs between June and July, a 1.2% increase. Year over year, job growth was 5%, ranking Hawaii 18th among all states for gains in construction jobs, according to the Associated General Contractors of America.
