EDISON, NJ October 25, 2023: A dramatic increase and an unprecedented two-year outlook for construction activity and infrastructure project spending was confirmed this morning at the 39th Annual Construction Forecast of the New Jersey Alliance for Action.
Speakers projected $54.8 billion in construction investment in 2024 and 2025 – a jump of more than 70% over the $32 billion two-year estimate given at last year’s Construction Forecast. This year’s number marks the first time in the Construction Forecast’s 39-year history that projections topped $50 billion.
Several vital sectors led the activity:
- Amtrak plans to spend $10.9 billion during 2024 and 2025 in New Jersey, which is the most dramatic increase in the survey.
- The New Jersey Economic Development Authority, driven by the success of its ASPIRE program, announced a planned construction investment of $3.6 billion.
- New Jersey’s public water, sewer, gas, and electric utilities project spending nearly $7.5 billion over the next two years on capital infrastructure improvements.
- NJ TRANSIT says it will invest $5.2 billion in capital spending in 2024 and 2025.
- New Jersey’s hospital sector clocked in at nearly $3.9 billion in construction investments over the next two years. This spending will be driven by many of the state’s largest healthcare systems.
- The Port Authority of New York & New Jersey plans to double capital construction over the next two years.
- The New Jersey Department of Transportation reported $2.3 billion of planned spending on roads and bridges. An additional quarter billion dollars will be invested in local aid transportation projects.
- The New Jersey Infrastructure Bank expects to fund more than $2.1 billion of infrastructure investment over 2024 and 2025.
- Reflecting the surge in warehouse development and related spending, the National Association of Industrial and Office Properties forecast $3.3 billion in construction spending over 2024 and 2025.
Other important planned infrastructure spending numbers include:
- Offshore wind (Orsted’s Ocean Wind 1) has begun construction, and the company projects spending $400 million in capital expenditures in 2024.
- The New Jersey Schools Development Authority plans more than $1.2 billion in construction spending in the next two years.
Overall, today’s construction leaders called for capital spending of $26.5 billion in 2024 and $28.3 billion in 2025.
“These projections are significant indeed! They’re historically high. And behind these numbers are other opportunities, such as offshore wind manufacturing and marshaling facilities in southern NJ,” said Alliance for Action President Jerry Keenan. “The upgraded roads, bridges, mass transit, health care, utility and other capital investments outlined today will drive New Jersey’s economy for years to come.”
Click HERE to view the Construction Forecast numbers chart.