While a brief uptick in construction jobs bucked a year-long trend of declines, those in the Long Island construction sector say timely government action and increased funding are the building blocks for long-term employment  gains.

“Business and employment growth relies on certainty and sustained investment,” notes Jaime Quent, director of communications and government relations for Long Island Contractor’s Association (LICA) in Melville. “We have seen recent additional investment in our roads, bridges and essential infrastructure from the state, county and local resources, and this has supported additional roles being created within the sector.”

Quent doesn’t believe the growth in construction jobs will last long, given the current regulatory climate and budgetary concerns at the state level. “The recent executive order imposing a moratorium on data center permitting, coupled with the possible delay to the next five-year NYSDOT Capital Plan, puts a potential growth of construction jobs in danger as this harms investment certainty for the industry,” she says.

Contracting firms have been cautiously optimistic about the added jobs. “The increase is encouraging, but I would describe it as stabilization rather than a major expansion,” says Josh Seiden, CEO of LMJ Management and Construction in Islandia, about the bump in construction jobs in May.

Seiden says the jobs numbers reflect local demand for certain types of construction work. “I believe several delayed projects are finally moving forward as owners adjust to higher interest rates and construction costs. Demand also remains strong for renovations, infrastructure work, and upgrades to existing commercial, industrial, healthcare and institutional facilities.”

On Long Island, Seiden sees potential in several highly active sectors including healthcare, pharmaceuticals, food distribution, manufacturing, infrastructure, utilities and education. However, burdensome costs may still threaten development. “I expect moderate growth, although high financing, insurance, material and approval processes will continue to slow some projects,” Seiden says.

Other opportunities for development may be left unrealized if they are impeded by red tape, according to Seiden. “Housing and mixed-use development could also create significant jobs if municipalities allow greater density and streamline approvals,” he warns.

His concern is echoed by Mike Florio, CEO of Melville-based trade group Long Island Builders Institute (LIBI), who calls out cumbersome approval processes for slowing the region’s response to a housing crisis. “Long Island continues to face a severe housing shortage, and demand for both market-rate and workforce housing remains exceptionally strong,” he says. “The challenge is that demand alone doesn’t create jobs. Until projects can move through the approval process more efficiently, the region will continue to underperform its economic potential.”

Florio expects gradual growth, but is concerned that approval challenges could be impeding many types of construction projects that are desperately sought by many local communities.

“The greatest opportunities will continue to be in multifamily housing, mixed-use developments, infrastructure improvements and the redevelopment of underutilized commercial properties,” says Florio. “The biggest constraint isn’t a lack of demand or investment—it’s the ability to get projects approved in a predictable and timely manner.”

Housing is a particular area of concern, since residential projects generate a great deal of construction work opportunities once they are approved. “If local governments embrace policies that encourage housing production and reduce unnecessary delays, construction employment could accelerate significantly,” Florio says. “Every housing development represents years of work for contractors, subcontractors, suppliers, engineers, architects and countless local businesses.”

In an effort to continue the construction growth that resulted from increased federal spending on infrastructure projects, trade organizations like the Associated General Contractors of America (AGCA) have urged Congress to pass a new surface transportation bill before the current law expires.

Quent believes this to be a key driver for long-term construction growth on Long Island. “The surface transportation bill is an essential component of state and local infrastructure investment, as it provides the resources necessary to fund long-term capital plans,” she says. “The ripple effects of a continually delayed bill from Washington will spread across the entire industry.”

Regardless of the type of project, many leaders from across the construction industry are pushing for changes to municipal codes that would lead to faster approvals. “Townships should establish clear review timelines, better coordinate reviews between departments, and streamline the process for major construction projects,” suggests Seiden. “They should also consider, if they don’t already, offering an expedited review option, and outsourcing reviews on the larger projects to streamline the process, which many large projects would be willing to pay in exchange for a reliable approval schedule.”

A nationwide immigration crackdown has continued to threaten many members of an aging workforce that has already endured its share of challenges, Florio says, having thinned out in recent years due to a decreasing interest in skilled trades among younger people. “Immigration enforcement has certainly added pressure in some sectors of the industry, particularly among specialty trades, but it is only one piece of a much larger workforce issue,” he says. “We need comprehensive workforce solutions that include expanded vocational education, apprenticeship opportunities, and legal pathways that allow qualified workers to help meet America’s construction needs.”

As for reforms to zoning and approvals processes, Florio believes they can’t come soon enough. “Long Island doesn’t suffer from a lack of interest in building housing—it suffers from a lack of certainty,” he says. “If we can reduce unnecessary regulatory delays while maintaining strong environmental and community protections, we’ll produce more housing, create more jobs and improve affordability for the next generation of Long Islanders.”