2023 Private Sector Construction
onstruction spending in both the private and public sectors is generally expected to be higher in 2023 than it was in 2022. The following are summaries of estimated spending by industry in 2023 (compared to 2022), highlighting specific anticipated projects.
Oil and Gas
$730 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Three factors drive most petroleum-related construction spending: oil prices, exploration, and oil field development. In 2022, oil prices averaged about $100 per barrel, the highest average annual price in nearly a decade. Two large projects, Pikka (Santos) and Willow (ConocoPhillips), have potential to substantially increase construction activity in the coming years. Santos has begun surface facility work on site at Pikka, including gravel roads and pads. ConocoPhillips plans to begin road and other gravel infrastructure projects related to Willow in 2023.
Utilities
$600 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
![distant view of a construction worker standing toward the top of a ladder in a space between two buildings](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-01.jpg)
![construction workers use tools on wooden structures](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-02.jpg)
Photo provided by Davis Constructors & Engineers, Inc.
Residential
$450 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Hospitals and Healthcare
$290 million
![Red down arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-red_arrow_down.png)
Mining
$225 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Other Basic Industry
$145 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Other Industrial/Commercial
$390 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
2023 Public Sector Construction
Highways and Roads
$700 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
National Defense
$600 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-red_arrow_down.png)
![a work truck drives down an open road at dusk](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-03.jpg)
Photo provided by QAP
![aerial view of a building in the middle of construction work, with no roof and covered with protective plastic](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-04.jpg)
Photo provided by Cornerstone General Contractors
![a man wears a safety vest and grasps a construction tripod tool while standing near an earth mover digging a trench](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-05.jpg)
Photo provided by Knik Construction
Airports, Ports, Harbors, and Railroad
$510 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Education
$315 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Other State and Local Govt.
$370 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-green_arrow_up.png)
Other Federal Govt.
$225 million
![Green Up arrow](https://alaskacontractor.akbizmag.com/assets/2023/03/akcon_spr2023-spending_outlook-dash.png)