Highway construction cuts hurt California

California's total statewide construction activity declined for the second month in a row with July's volume totaling $6.02 billion, down 4.5% from June 2003, according to statistical data gathered monthly by the Construction Industry Research Board (CIRB).

Burbank, CA-based CIRB said all construction sectors in California are down from the prior month – the first month this has occurred in 2003. The largest decline in July is in public works construction, which includes highway-heavy construction along with governmental buildings: it’s down $241.3 million or 13.4% to $1.49 billion from June this year.

Ben Bartolotto, director of CIRB, said the decline in public works construction is due primarily to a slowdown in heavy construction, more specifically in the anticipated reductions in road and bridge construction due, in part, to the uncertainties surrounding the $38 billion deficit state budget.

In the first seven months of 2003, heavy construction totals $4.29 billion, down about $1.74 billion, or 28.9%, he said. Year-to-date, the road and bridge portion of heavy construction during that period is down 39.8% and for the month of July, road and bridge construction totals only $180.7 million, down 52.8% from June, Bartolotto added.