LIHU‘E — The sound of hammers beating against wooden frames and electric saws slicing through two-by-fours may not be as prevalent as it was when the economy was thriving on Kaua‘i. “U.S. recession is easing, but prospects for a quick
LIHU‘E — The sound of hammers beating against wooden frames and electric saws slicing through two-by-fours may not be as prevalent as it was when the economy was thriving on Kaua‘i.
“U.S. recession is easing, but prospects for a quick Hawai‘i construction recovery remain poor,” Kaua‘i Office of Economic Development Director George Costa said in an e-mail Friday.
Even though residential building permits are down across the island some 69 percent this year compared to 2008, according to OED statistics, there are a few in the industry who continue to hold their own.
For example, Soul Construction — recently named one of the fastest growing companies in the state by Pacific Business News — has “seen a slowdown” but has grown in revenue some 2,000 percent since it opened in 2004, said President Joshua Copeland.
It’s all about building lasting relationships, he said in an interview at The Garden Island Friday.
“Always treat people well,” Copeland said, adding that years ago, when business was booming, people were driving up prices and not showing up at their jobs, likely burning many bridges.
“We are in a down economy, there’s no question about it,” said Jess Jensen, designer estimator for Island Truss. “But established contractors and manufacturers have been able to — maybe not be as busy as they once were — maintain business.”
One popular trend right now is remodeling rather than new construction, which is what typically occurs when the economy slows down, he said in a phone interview Friday.
While Jensen said he has recently noticed an “upsurge” in business as “people are becoming more confident,” statistics from the OED predict new construction declines to continue through 2011.
A decrease in permits for residential construction accelerated in the second quarter of 2009, and non-residential building activity remains “severely depressed,” Costa said.
The downturn in residential permitting will likely “not see any marked improvement until home prices bottom out in 2011,” he added.
Of those applying for unemployment, construction remains one of the leading industries on Kaua‘i affected by the economy, said Bill Grier, branch manager of WorkWise Kaua‘i.
“Everybody is taking a wait-and-see attitude,” said Scott Doty, project manager for Construction Hawai‘i.
Though business has been “steady as she goes” for his company, he says people are more hesitant to build new homes, preferring to do “a lot more general maintenance and upkeep, repair-type projects.”
People are also “shopping” around more than they used to, looking for the best deals, Copeland said.
It’s true, said Marty Johnson of Cat Electrix, noting however that “you get what you pay for.”
“People want a Cadillac job, but are calling for Volkswagens,” he said in a phone interview Friday.
Where Johnson used to get six to eight service calls a day in 2008, he now receives the same amount over the course of an entire week and adds “there’s not much happening at all for new construction.”
One shining light in the dark economic tunnel are the “many new projects” Mayor Bernard Carvalho Jr. has slated for the island, Doty said.
By creating local construction jobs on Kaua‘i, “he’s really helping,” he said.
Current projects include the Kealia Fire Station, the Wailua Golf Course maintenance facility, the “Fishbowl” project and the Waimea Wastewater Treatment Plant expansion, wrote Kaua‘i County spokesperson Mary Daubert in an e-mail Friday.
Mainly, the key to success, even when times are tough, is about remaining positive, Copeland said.
After coming to Kaua‘i with nothing in the bank and literally starting from scratch, he said anyone can succeed in business.
“If you have a positive attitude, you’ll see things you wouldn’t normally see if you’re always negative,” he said.
Copeland said his success may not be forever, but “it’s fun while it lasts.”
As for others in the industry, Grier said he hopes things start to pick up soon for those construction workers who may have recently lost their jobs or can’t find work.
“I think things are changing; we’re starting to see a resurgence,” Jensen said.
