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Associated General Contractors warns Alaska construction season may shrink, risking jobs and apprenticeships
Summary
The Associated General Contractors of Alaska told the Senate Transportation Committee that delays in project advertising and reductions in Alaska DOT payments are likely to shrink the 2025 construction season, with cascading impacts on contractors, apprentices and local economies.
A presentation to the Senate Transportation Committee on Feb. 4 from the Associated General Contractors of Alaska (AGC) warned that the state’s 2025 construction season could be substantially smaller than expected, threatening jobs, apprenticeship gains and local supplier revenue.
AGC Executive Director Alicia Amberg told the committee that AGC projects payments to contractors this year will be below $700 million, roughly half the inflation-adjusted $1.3 billion AGC says is needed to maintain historical activity. "This is extremely concerning," Amberg said, noting many specialized Alaska DOT contractors bid on far fewer projects in 2024 than in 2023 and are preparing layoffs.
The presentation argued delays between federal appropriations and project delivery — including issues with the STIP (Statewide Transportation Improvement Program) and the department’s tentative advertised schedule (TAS/TAWS) — have reduced the number of projects advertised and paid in time for the season. “At the beginning of the federal fiscal year we received a tentative advertised schedule showing 30 projects in the following four months. Only 11 of the 30 projects listed have advertised,” Amberg said.
Why it matters: AGC said construction supports about 42,000 jobs statewide, including 25,000 direct jobs, and that construction wages average about $93,500 — 37% above the statewide average. AGC warned a weak season will not only reduce contractor revenue but will also erode workforce gains made since 2022, when unions and training centers expanded apprenticeship output in anticipation of federal infrastructure funds.
AGC co-chair Marcus Trivette and co-chair Jeff Miller detailed how the industry’s planning depends on reliable TAS/TAWS schedules and timely project advertising. Trivette said AGC used contractor-tracked estimates of payments by region and found South Coast projections largely accurate but large deltas — more than $100 million combined — between department projections and contractor expectations in Central and Northern regions. "If projects bid too late in the season, meaningful work can't happen during the same season," Trivette said.
Miller said training centers and unions increased apprenticeship throughput in 2022, then struggled to find work for those apprentices in 2024. He said labor partners have already reduced intake of new apprentices by about 50% because contractors cannot reliably schedule work. “When anticipated project biddings are delayed until late summer or never come to fruition…they've now made the difficult decision to reduce the number of apprentices they are taking in by 50%,” Miller said.
Committee members asked whether delays were unique to Alaska. Amberg said AGC of Alaska has not heard comparable patterns from other state AGC chapters and described the situation as “unprecedented.” Committee members and AGC discussed possible state actions, including identifying projects that could be moved forward with flexible funding and seeking clarification from DOT about the department’s tentative advertising lists. Trivette suggested the Legislature use its appropriations role to press DOT to move projects where possible.
Numbers and examples AGC cited include: - AGC projects less than $700 million in contractor payments for the 2025 season (AGC projection). - McKinley Research Group estimate that $1.3 billion (2024 dollars) in annual work is needed to maintain historical activity adjusted for inflation. - AGC said contractors that in Feb. 2024 had eight DOT contracts now had three in Feb. 2025.
AGC asked for further engagement with DOT and said it is analyzing a four-page response from DOT Commissioner Anderson and a recently provided list of potentially advertised projects. The committee said members would share the department’s letter with other legislators and requested a written AGC response as AGC completes its analysis.
Ending: AGC emphasized the economic stakes — layoffs, lost apprenticeship opportunities, and reduced supplier revenue — and urged the committee to work with DOT and use budget tools where appropriate to reduce bottlenecks. The committee did not take formal action on AGC’s presentation during the Feb. 4 meeting.
