The construction market in Sacramento is at a 16 year low. Unemployment rates are continuing to rise in 2009 and what may seem like “light at the end of a tunnel” is beginning to be going out.

After the financial meltdown in the fall, private financing for construction has almost disappeared. That has left contractors scrambling for public works projects until the financial markets get right again.

According to a recent article in www.californiaconstruction.com, it is estimated that next year at this time, the California Construction Top Projects list may feature road projects, military work and public office buildings instead of retail centers, hotels and office complexes. Contractors in Sacramento are being affected with the types of projects they are building, how they bid and the bids of their competitors.

Another thing is clear: companies that are prepared to work on public projects, especially with more federal stimulus projects being available this summer, will be in much better shape than those who have relied on privately-funded infrastructure.

Joe Bean, a human resource manager for Teichert Construction, a “big player” in the Sacramento area, says, “The construction industry is cyclical. It typically booms for about seven years, then slumps from one to two years. However this last upswing lasted about 12 years of the market being good and some believe, we might have to accept the market to be bad a little longer than usual.”

Advice for the current contractor? Bid smart! Take into consideration prevailing wages and be efficient when constructing. Even if the profit margins are lower, keep work active for employees relying on you to make ends meet. And until the financial markets become stable again, pick your projects carefully and strive for public projects.