Major construction projects from Connecticut’s health care sector could act as a much needed stimulus for the construction industry.
Several health care organizations across the state are embarking on major expansions and renovations that will lead to hundreds of millions of dollars in investments and the creation of thousands of jobs for construction workers.
The work will be a blessing to the construction industry, which has been hit hard by the economic downturn. That sector lost 20,500 jobs, or 30 percent of its workforce between July 2007 and December 2010.
So far this year, construction has gained 1,500 jobs, bringing its total workforce to 50,100.
The new investments also demonstrate how the health care industry continues to be a major driver in the state’s economy, a trend likely to continue for the foreseeable future.
“Health care has basically been recession proof,” said economist Steven Lanza, a UConn professor who is the executive editor of The Connecticut Economy. “It’s really driving growth in the economy.”
Lanza said since 2008 employment in Connecticut’s health care industry has grown about 8 percent, while employment levels in most other sectors has remained stagnant or taken a significant hit. He said the aging population and advances in medical technology have continued to increase the demand for health care services, which is driving growth in the industry.
And, he said, that growth isn’t likely to be curbed anytime soon.
Among the health-care related projects in the pipeline, is a $61 million investment by Hartford Hospital to expand its emergency department, renovate several buildings near its campus on Jefferson Street, and construct a $40 million parking garage.
Hospital officials say the various projects will create about 280 jobs.
Meanwhile, preparations are underway at Danbury Hospital for a $150 million construction project that will add nearly 300,000 square feet of new space on the health care provider’s campus.
Calling it the largest expansion in the hospital’s 125-year history, the project will include the construction of a new patient tower that will feature a welcoming center, more private rooms, and a new emergency room able to serve 88,000 patient visits per year.
The project will also be an economic stimulus, creating an estimated 500 new jobs and infuse about $250 million into the local economy over the next few years, officials said.
Meanwhile, Gov. Dannel P. Malloy signed into law last week his $864 million “Bioscience Connecticut,” initiative, that is expected to create 3,000 construction jobs annually from 2012 through 2018.
The project calls for a major renovation of John Dempsey Hospital and adding a patient care tower at the University of Connecticut Health Center.
It also greatly expands bioscience research and training facilities in Farmington.
Finally, lawmakers also recently approved $8.3 million in bonding for Windham Hospital to build a new 30,000 square-foot medical center that will be home to various hospital services and dozens of primary care physicians, medical oncologists, physical therapists and rehabilitators, laboratory workers, orthopedic surgeons and general surgeons.
It will create an estimated 125 construction jobs.