ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Sunday, January 5, 1997 TAG: 9701070004
SECTION: BUSINESS PAGE: 5 EDITION: METRO
TYPE: ECONOMIC FORECAST
SOURCE: MAG POFF STAFF WRITER
Many of Western Virginia's major contractors say they have all the work they can handle right now. That's the pace they hope to maintain well into the new year.
George Bristol, Roanoke area director for Associated General Contractors of Virginia, said the construction industry has fully recovered from the long downturn that began in 1984. In the last two years, he said, the members of his organization have been busy.
His area covers Roanoke, Lynchburg, Martinsville, Danville, Wytheville and Bluefield.
"The market is still very strong with a better backlog than in the past," Bristol said.
The Branch Group of Roanoke, for instance, is constructing a motel near Lewis-Gale Hospital in Salem, a building in Lynchburg and the new Second Street Bridge in Roanoke.
Bristol knows of no major construction contracts on the horizon for bidding at this time, but he said a lot of "basic" smaller jobs are available. "It's kind of dull - in a nice way," he said. "Everybody is really very busy."
Right now, he said, contractors are emphasizing training and education of their workers. All of the classes sponsored by the organization are full, he said, because contractors "are trying to make their employees more proficient."
Home building is also an important part of the construction picture in Western Virginia.
"I don't see a slowdown," said Joe Miller, president of the Roanoke Regional Home Builders Association. He described the home building market as strong.
Miller said 1995 and 1996 were "good steady years." Although Roanoke never has what might be called a boom in home construction, he added, there is seldom a collapse on the other hand.
This year, he said, the trend "ought to continue." That will be especially true if mortgage interest rates stay low.
The price of lumber has risen in the last several months, according to Miller, but he expects the cost to remain steady or go down.
If the cost should stay high, he said, it could add up to $2,000 to the price of a home, but he said the price is on "a roller coaster," going up and down.
He attributed the situation to tariffs on the importation of lumber from Canada. Those tariffs should drop with the first of this year, he said, because a new low-tariff quota went into effect Jan. 1.
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