Connecticut and New York’s private construction industries last year offered the least economic impact when measured as a percentage of gross domestic product (GDP) than any other states, according to Associated Builders and Contractors (ABC).
In its report, the Rocky Hill-based ABC found construction accounted for just 3.1 percent of GDP in Connecticut, below the national average of 3.9 percent. This follows an ABC report released earlier this month that found Connecticut’s construction unemployment rate in June was the fourth highest in the country at 6.9 percent. (The national industry unemployment rate was 4.6 percent.)
Chris Syrek, president of ABC’s Connecticut chapter, acknowledged the “pain” of the situation for its members, and attributed it to the state economy’s challenging business environment, budget deficits and “high cost of doing business” here.
Overall, Connecticut’s state GDP placed it just above the middle in 2015 with the 23rd largest state economy. The state economy is influenced by industry developments in the New York City metropolitan area, since many high-income individuals who work in Manhattan live in Connecticut. That affects residential construction in the state, according to the report.
In 2015, the top five states for the value added from construction as a percentage of state GDP in order from highest to lowest were: North Dakota, Hawaii, Montana, Wyoming and Louisiana.