COMING OUT OF THE COVID CRISIS

By Hank Kita, STA Executive Director

With New York City and the remainder of the country slowly emerging from the COVID crisis, it is undeniable that the construction industry will have a long road back to fully recovering from the economic hardships brought about by the pandemic.

The New York City construction industry has long been a major part of the economic fabric of the City.  An important report recently released by the Building Trades Employers’ Association (BTEA) chronicles the “hit” that the industry took as a result of the COVID crisis.  According to this report, the pandemic wiped out over 74,000 construction related jobs and almost $10 billion in construction projects.

The BTEA report further documents the importance to the local economy of the construction and real estate sectors.  The report found that the construction and real estate sectors accounted for nearly 10% of the city’s jobs and 20% of its total output in 2020.  Add to that the fact that through the real estate sector, almost half of all city tax revenues come from property taxes paid by owners and developers.

Additionally, the BTEA study makes several key recommendations on issues of great importance to STA contractor members.  Those recommendations include:

  • Calling upon the State Senate and Assembly to cut down on insurance costs for owners and contractors by cutting down on insurance costs which have been driven up by the archaic and “out of touch” New York Scaffold Law. The Scaffold Law has caused insurance rates to be nearly quadruple that of other states as a result of placing full liability for injured workers on the contractors.
  • The report also recommends that the NYC Department of Buildings expedites projects 15 stories and 100,000 square feet or more through its administrative protocols.
  • Requesting that the City of New York increase its capital spending especially in the area of new and renovated schools.

The STA will make certain that this important report is provided in the coming weeks to our members and hopes to use many of its findings and recommendations as it continues to craft its advocacy and legislative agenda in the coming year.