1. Thumbs Up in 2017 Construction Market Update
Keystone Contractors Association
May 17, 2017

2. National/Global Economic Issues
Stock market/investment surge driven by anticipated lower tax rates. Repatriation would accelerate
Regulations on finance, environment, energy easing
Employment nearing record levels – wages 2.5%
Lower personal taxes, modest inflation, higher wages pushing consumer confidence/spending
Infrastructure spending likely in 2018 ($200-$400 billion)
Budget battle will be between GOP not partisan
Trade measures pose biggest economic risk – global economy showing signs of recovery
Without stimulus in early 2017, GDP to 2-2.5% range
2018 GDP 2.5% but tight labor could drag

3. 146 Million Working

4. Job Growth Slowing

5. Regional Economic Issues
Gains of new economic drivers offset losses in old
Employment growth flat
Unemployment fell to 5.2% in 2016
Recovery in energy and manufacturing expected to boost job growth
Natural gas recovering – roughly $2 billion in
Tech sector continuing growth (UBER now at 800)
Hospital spending to double
Major projects advancing
Public construction remains slow

6. Regional Employment Trend

7. Gas Industry Recovery
Midstream capacity investment returns (6-8 compressor stations, Revolution & Rover)
At least 200MCF/day processing added
Pipeline approval expected in 2017 to relieve price discounting
Research on Shell/PTT impact becoming clearer
Transition to plastics by 2020

8. Major Jobs Moving in 2017 UPMC South Hills ($200M+ on 2 facilities)
PSU Chemical & Biological Engineering ($140 million)
Stat Capitol Complex ($81 million)
PSU East/North Hall ($ million)
UPMC Hamot patient tower ($111 million)
AHN St. Vincent Hospital ($110 million)
UPMC Ophthalmology ($ million)
Milton Hershey Medical Center Pavilion ($300 million)
Clarion Tippin Gym ($35 million)
Proctor & Gamble WV Plant ($1 billion)
CPV Fairview 980 MW Power Plant ($600 million)
State College Elementary Schools ($55 million)
Wilkes Barre High School ($ million)