Highway stimulus could boost big contractors
February 26, 2009
Paul Nussbaum, Philadelphia Inquirer
If past is prologue, Driscoll Construction Co. of Montgomery County and South State Inc. of Cumberland County can expect the federal stimulus program to be very good to them.
The construction firms, among the region's largest, had the most lucrative highway contracts in Southeastern Pennsylvania and South Jersey over the past four years. And they are among a handful of area companies well-positioned to receive construction work unleashed by the new federal law.
Construction employment at Driscoll, based in Spring House, could double to about 300 if the company wins contracts for "shovel-ready" bridge and highway projects, president Michael Driscoll said Friday.
"It's really dependent on what projects they put out for bidding," he said.
The stimulus package includes about $27 billion for highway and bridge construction nationwide. The Pennsylvania and New Jersey Departments of Transportation have drawn up wish lists of projects they could start within four months of getting money.
Pennsylvania expects to get about $1.25 billion for roads and bridges, and New Jersey about $650 million.
Potential projects in the region include repairs to the Girard Point Bridge near Philadelphia International Airport, pavement and bridge repairs on I-476 (the Blue Route) in Montgomery County, installation of cameras and transponders to help monitor congestion on I-95, and work on the long-awaited direct connection of I-295 with State Route 42 and I-76 near Bellmawr.
PennDot expects about $192 million for projects in Southeastern Pennsylvania, said Charles Davies, assistant executive for design in the agency's southeastern district. Additional money may be available from $205 million for interstate highway projects in Pennsylvania.
An analysis of the stimulus package by the Economy League of Greater Philadelphia estimated southeastern Pennsylvania will get about $318 million for highways, and South Jersey will get about $120 million for highways.
With unemployment in construction trades above 15 percent, contractors and workers hope the stimulus money will mean a boost in jobs.
The Pennsylvania and New Jersey projects would create about 52,500 U.S. jobs in construction, manufacturing, and service sectors, based on a Federal Highway Administration estimate that 35,000 jobs are supported by every $1.25 billion invested in transportation projects.
Although it's impossible to know who the big winners will be in the sweepstakes for new work, the recent past may be a good guide.
Driscoll Construction received the most money from PennDot in Southeastern Pennsylvania in fiscal 2005-09, with $160.5 million in projects, according to agency records. The company's high-profile projects include the South Street Bridge reconstruction and the widening of the Commodore Barry Bridge ramps.
J.D. Eckman Inc., of Atglen, was second, with $133.7 million in PennDot contracts in Southeastern Pennsylvania.
In South Jersey, South State, of Bridgeton, received $64 million for state road and highway projects. Agate Construction Co., in Clermont, Cape May County, received the second most, $29.5 million.
State highway engineers are trying to spread the work around by creating a mix of jobs.
"The major contractors are always in a position to bid for the lion's share of the work," PennDot's Davies said, "but we tried to make the work as varied as possible . . . paving, painting, ITS [intelligent transportation systems] work. We want to spread the money across as wide an area as possible."
If money that the states hope to tap is a $1.5 billion program for projects that would "significantly impact the nation, a metropolitan area, or a region." Guidelines for determining those projects are to be issued by the U.S. Department of Transportation within 90 days.