2014 has seen considerable improvement in geotechnical construction activities within the United States. Big metropolitan cities, such as New York, Los Angeles, San Francisco, Miami, and Seattle have seen an expansion of luxury residential construction. 2014 also saw the one of the best years for commercial projects since 2009. We expect this trend to continue in 2015, and will put a strain on companies looking for engineering professionals to staff job sites.
Infrastructure projects are well underway, while new geotechnical megaprojects in California will be entering the design and construction phase. Other cities are expected to catch up with infrastructure works that have been delayed.
One are of concern is the magnitude and impact of the depressed oil prices on the energy sector. While the shale oil industry is directly affected, the coproduction of shale gas could offset losses in revenue. In this respect, we find that states more reliant in oil tax revenues will cut back or delay further infrastructure investments. While lower oil prices could spur increased private demand and other industries, they would have to be maintained for a sufficiently long time for consumer perception to change.
We expect that the geotechnical industry will show marked improvement in the US and we think that the timing is right for increases in charge rates. Concluding, we believe that the timing is right for increasing the federal tax on gasoline so that the highway trust fund is properly funded on the long run.
We wish everyone continued success in 2015!
Dimitrios Konstantakos, P.E.
CEO Deep Excavation LLC
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