The local construction industry is on track for healthy growth into next year, says Cape Girardeau's inspection services director.
"We're looking for a good year in 1998," said the director, Richard Murray. "Some major school construction is on the horizon, and we expect the housing market to remain solid. We could see an increase in construction for the year."
Climbing to the $30 million mark has been a long one this year in Cape Girardeau.
"We didn't write many permits the first quarter," said Murray. "The weather just wasn't conducive for building."
January permits were less than half the average 40-plus permits a month for Cape Girardeau. And at the close of the first quarter, only 59 permits had been issued, totaling $5.1 million.
"Actually, things were slow into June," said Murray.
Then, construction exploded.
During July, more than 50 permits were issued totaling more than $7.2 million.
"We've been pretty busy since," said Murray.
Going into December, the city inspection office had written 476 permits in the amount of $30.5 million.
"This won't be a record year," said Murray. "We haven't had the really big permits and contracts of the past couple of years."
During the record year of 1992, two multimillion-dollar permits led to almost $30 million in commercial buildings and expansion and a $47.9 million year. A year ago a $7.2 million commercial expansion led to more than $26 million in commercial construction and a $47.6 million year. That was second best in Cape Girardeau construction history.
"We could finish around $32 million to $33 million this year," said Murray.
A big chunk of new construction in Cape Girardeau during the first 11 months of 1997 was for living quarters: 60 single-family homes and four duplexes or small apartment buildings for $12.8 million.
Included in those totals are 60 new-home permits for $11.2 million and a half-dozen duplex residential buildings at a cost of more than $950,000.
Another $1.4 million in permits have been issued for residential expansion, garages, swimming pools and other home projects.
Ten commercial projects this year have topped the $500,000 mark.
Included on the commercial list is a Super 8 Motel under construction at 2011 N. Kingshighway. It will be a 49-unit operation with some suites and a swimming pool.
Ashvin M. Patel, owner of the Day's Inn Motel at Jackson, is putting up two 49-room Super 8 motels. The other is at Perryville. A spring opening is expected for the Cape Girardeau motel. The Perryville motel is expected to open in mid-January.
Other large construction permits include an office and retail building near Mount Auburn Road and Route K; two medical office buildings in the Mount Auburn Road area; new Alliance Bank and Bank of Missouri bank buildings; St. Vincent's Church expansion; a church chapel; and a couple of retail buildings, including Hollywood Video, which opened last week at 127 Siemers Drive.
Construction in the Cape Girardeau area has averaged $37.4 million a year, with a total of $299.5 million from Jan. 1, 1990, through Nov. 30, 1997.
Cape Girardeau construction totals do not include the $90 million Emerson Memorial Bridge being built across the Mississippi River. Neither do the totals include a number of city and street projects.
Construction across Southeast Missouri is expected to increase into 1998, with some monster projects on schedule. They include the $350 million Procter & Gamble expansion project in Cape Girardeau County; the Associated Electric Cooperative-PanEnergy Trading and Market Services $100 million power generation facility in Dunklin County; the multimillion-dollar house factory already in operation by Holigan Family Investments Inc. at Sikeston; a $35 million Good Humor-Breyers Ice Cream Co. facility at Sikeston; and a $56 million improvement to the Noranda Aluminum plant near New Madrid.
Nationally, construction is in its seventh straight year of growth, said Robert Murray, vice president of economic affairs for McGraw-Hill Construction Information Group in Washington, which provides construction industry information and analysis.
"Supportive demographics and available funding should continue to benefit the construction industry, alleviating the negative impact of a slower business environment," said Murray. "We see the mix of strengthening and weakening sectors in 1998 allowing total construction to advance 3 percent, making it the seventh straight year of increases."
Favorable prospects have also emerged from the state reports. Missouri still trails year-ago totals, but the percentages have been improving over the third and into the fourth quarter.
F.W. Dodge Division of McGraw-Hill Cos. keeps tabs on state totals, producing the Dodge Reports and Sweet's Catalog files. Total construction for the first 10 months of the year was $4.4 billion, down 8 percent from the $4.7 billion of a year ago.
Nonresidential construction during the first 10 months, which includes commercial, manufacturing and other buildings not designed for shelter, was reported at $1.8 billion, down 11 percent from the $1.9 billion of a year ago.
Residential construction through October was $2.2 billion, down 6 percent from the same period a year ago. Nonbuilding construction, which includes streets, highways, bridges, river and harbor developments, airports and a few other projects, was reported at $936,525,000 through October, down 6 percent from a year ago.
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