Construction industry observers here predict the improving economy and an uptick in construction backlog will provide momentum to lift the industry through 2016.

General contractor Baker Construction & Development Inc. has several multimillion-dollar projects under way and is building up a backlog going into 2016, says Barry Baker, president of the Spokane company.

“This was a good year for us, and we’re hoping next year will be as good as this year,” Baker says.

He says the company is competing with other contractors, not only for construction jobs, but also for highly skilled workers and supervisors.

“We’re in a hiring mode, and we’ll be looking to add to our staff next year,” he says.

Scott Simmons, director of Business and Developer Services for the city of Spokane, says total building permit values for 2015 are running on par with 2014, and he expects 2016 values will be similar.

The city issued building permits valued at a total of $312 million in 2014, and Simmons estimated it’s on pace to approach or exceed $300 million in 2015.

“Staying around $300 million, would be healthy indicator that we’re plugging along still,” he says.

While Simmons says he expects private-sector construction will remain strong, the biggest growth area for construction here in the next few years likely will be on the public-sector side, which will include infrastructure work, school projects, and park improvements.

Simmons says the city plans to spend $170 million next year on capital improvements, followed by $260 million in 2017, and $208 million in 2018.

Capital improvements will include street projects, combined sewer overflow basin installations, and other infrastructure work.

He says the city also anticipates issuing permits for the Salk Middle School replacement project in 2016. The permit value for the school is estimated at $26 million, and it’s the first major project to be funded through the Spokane Public Schools’ $145 bond measure that voters passed in February.

Simmons says he anticipates most of the planned improvements at Riverfront Park will be permitted in the next three years at the rate of $15 million to $20 million a year. Voters approved a $63.4 million parks bond last year to finance the upgrades.

Private-sector projects in the city’s pipeline for 2016 include the planned $12.3 million Palouse Trails Apartments, on the South Hill, and the $6 million Larry H. Miller Toyota dealership complex downtown.

Brian Taylor, president and CEO of the Inland Pacific Chapter of Associated Builders & Contractors Inc., says contractors saw some growth in 2015 and they’re optimistic about 2016.

“We’re looking for a stronger year and growth in backlog through 2016,” Taylor says.

Craig Roberts, general manager of Condron Homes LLC, a longtime Spokane homebuilder, says the current activity level bodes well for the coming year. He says the company has 13 homesites presold and plans to have more available by May.

The company hopes to construct 50 homes in 2016, up from 35 this year, Roberts says.

Condron Homes specializes in upper-end homes, typically costing more than $350,000.

“People seem to have a little more money to spend to upgrade to a little higher-priced home,” he says, although he adds that homebuilders focusing on lower price points also are doing well.

—Mike McLean