A Roadmap For a Successful 2025 Construction Season

s we dive into a new year advocating for the state’s building industry, let’s ground ourselves in a fundamental truth: The construction industry is a significant contributor to Alaska’s economy. It is vital to all industrial, commercial, residential, and infrastructure development in the state, spanning from the smallest remote community to the largest city. One in twenty jobs in Alaska’s economy are in the construction sector, 82 percent of which are held by Alaska residents.

2025 has potential to be a year of significant economic growth in Alaska. With new energy developments underway in Alaska—including LNG operations in Southcentral; Santo’s Pikka project, expected to come online late 2025 or early 2026; and continued Willow project development on the North Slope—we expect to see more job creation to support these projects. Alaska also continues to see funding from the 2021 Infrastructure Investment and Jobs Act, or IIJA. With the expectation that Alaska may receive more than $8 billion in funding so far, Alaska contractors will help construct clean energy infrastructure, broadband infrastructure, bridge and highway construction, airport and port improvements, grid infrastructure and resiliency, and water and wastewater projects.

Our roadmap for a successful 2025 construction season includes a few key elements, such as stable regulations and predictable permitting processes. We also need to move forward on projects that make for a solid construction season and let us use our big and growing workforce.

Construction projects in Alaska are substantially impacted by regulations and permitting that govern factors such as contractor licensing and environmental protection. If regulatory and permitting requirements are steady and predictable, contractors can plan and don’t need to be as concerned with potential surprise increases in a project’s timeline or cost. We work closely with the Alaska Department of Transportation and Public Facilities, or DOT&PF, on issues that impact both organizations, such as unclear, overly burdensome, one-size-fits-all federal requirements that do not work for Alaska. With the political shift in Washington DC, Associated General Contractors, or AGC, of Alaska is encouraged by plans for meaningful permitting reform and an overall more construction-friendly environment.

Our industry hopes for a robust and consistent annual program from DOT&PF. We are thankful for a strong partnership and will continue to advocate for much-needed construction project funding. Over the last several years, capital funding for DOT&PF projects has increased, especially when taking into account the extreme lows that followed our statewide recession. However, these increases have come at the same time as record inflation, leaving our purchasing power significantly eroded; increased or level funding won’t necessarily lead to more construction projects.

The delay in finalizing the Alaska Statewide Transportation Improvement Program, or STIP, also impacts construction projects moving through the funding, design, and bid pipeline.

Our industry also accounts for $3.6 billion of total statewide labor income impact. The sector shares the financial benefit via employee wages and hiring subcontractors and suppliers.

For every 100 direct jobs in Alaska, another 65 indirect and induced jobs are supported in the statewide economy. Alaska’s construction industry supports a total of 42,000 good-paying jobs, with 25,000 direct jobs in the industry and 16,700 jobs supported as contractors rent or purchase materials, fuel, equipment, and housing for field workers. Construction employees also spend wages locally, which helps strengthen local and statewide economies. A healthy summer construction season this year will allow us to keep resident workers who have joined our industry through apprenticeships. The industry doubled our apprentices in 2022 to address labor shortages, and they are eager to get to work.

AGC of Alaska remains optimistic about the progress we will see this year with our state and federal agency partners, and we are hopeful for a robust construction season. As long as it doesn’t rain the entire summer, we’ll be good.