While local tourism numbers continue to lag, a hopeful sign for economic well-being in the coming years here is construction. Myriad government projects of note are in play, and there are plans to expedite (as we all know) more housing development throughout the islands. A big question is: where are all of the workers going to come from, at what cost, and where are they all going to reside (as we have that dang housing shortage)?
The rail project is approaching the congested Kalihi/downtown corridor. The most expensive building project in U.S. Navy history is the Pearl Harbor dry dock project ($3.4 billion), which may provide 2,500 new jobs. Yet more condos are on the rise in Kaka`ako, forthcoming housing projects provide hope, and (theoretically) the New Aloha Stadium Entertainment District (NASED) project breaks ground next summer. There’s an Ewa Beach Hyatt planned, plus North Shore development. Lots of work announced, but how will it all get done in a “timely” manner? Already there are issues related to finding local housing for guest building industry workers. Maybe the excess, available hotel rooms could be an answer… for now?
Add in the reality that working age people (in general) are emigrating annually from Hawai`i, and optimism about construction as an economic driver must wrestle with the numbers game that could put the brakes on various projects. Industry training to educate more workers locally is ramping up. But originally estimated project costs will have to consider premiums that will be paid to fly in (and house) qualified workers from the mainland.
Months ago, University of Hawai`i Economic Research Organization’s Executive Director Carl Bonham suggested that government construction locally might double to $3- or even $4-billion annually in coming years. But even then, some of the typical tax benefits associated with construction fly away when out-of-state workers go home with their earnings.
Putting this logistics/cost puzzle together will be a primary job for many confirmed projects in order to ensure that they’re completed within expected timeframes. The Pearl Harbor project plans to begin submarine maintenance testing in January, 2028. The UH football team has an August 26, 2028, game scheduled against the University of Kansas- at the new Aloha Stadium. More truly affordable housing has been needed for 40 years- an on-going quest statewide. Sharp minds + sharp pencils must construct a way to make this all work in the years ahead.
Think about it…