Companies With and Without Stimulus Projects Hiring at Same Rate, In Part Because of "Disappointingly" Slow Distribution on Non-Transportation Stimulus Construction Dollars ARLINGTON, Va., July 30 /PRNewswire-USNewswire/ -- The stimulus plan appears to be having little influence on construction companies' ability to expand payrolls to date according to a new industry analysis of the impact of the federal program's construction spending released today by the Associated General Contractors of America. The "disappointingly" slow pace of construction spending outside of the transportation sector is one of the main reasons for the relatively small impact on new hiring, the group noted. "While the construction portion of the stimulus is having an impact, it is far from delivering its full promise and potential," said Stephen E. Sandherr, the chief executive officer of the contractors association. "With construction unemployment at almost double the national rate, it is disappointing to see so many stimulus programs getting off to such a slow start." Sandherr said that five months into a federal stimulus program that has approximately $135 billion dedicated for construction projects, there is little difference in hiring and purchasing patterns between companies doing stimulus-funded work and companies that aren't. For example, he noted that while 36 percent of construction companies with stimulus-funded work report plan to hire new employees, an almost identical percentage of firms without stimulus-funded work also plan to make new hires this year or next. He added that while 36 percent of construction firms with stimulus-funded work plan to purchase new equipment and supplies, a higher rate - 43 percent - of construction firms without stimulus-funded work report plans to purchase new equipment over the same time frame. One reason the stimulus is having a limited impact on construction hiring and purchasing patterns, Sandherr said, is that outside of the transportation arena, little of the stimulus' authorized construction dollars have resulted in actual construction work. He noted that while the Army Corps of Engineers is responsible for $4.6 billion in stimulus construction funds, the agency has only obligated $715 million and paid out $84 million. Meanwhile, the General Services Administration has only obligated $656 million and paid out $12 million of its $5.9 billion in stimulus construction funds. And only half of one percent of the $6 billion in stimulus funds available for the U.S. Environmental Protection Agency's state clean water and drinking water programs has been put to use at this point.
