Traffic causes delays, lost productivity for N.J. construction firms

Friday, June 11, 2010 01:50 PM By Evelyn Lee Evelyn Lee Evelyn Lee covers real estate, economic development and the environment for NJBIZ. She has been a staff reporter here since 2006.

Traffic congestion, and the resulting delays, are costing the nation’s construction firms some $23 billion a year — and New Jersey companies, in some ways, are more affected than their counterparts in other states, according to a new analysis released Thursday by the Associated General Contractors of America, in Washington, D.C.

New Jersey mirrored the nation in that 93 percent of the firms that were surveyed reported that traffic congestion and shipping unreliability had an impact on their operations — but 50 percent of local companies characterized that impact as “significant,” compared to only 22 percent nationally. Nearly 1,200 construction firms participated in the survey, including 25 from the Garden State.



Twenty-one percent of local general contractors, moreover, said that their cost of doing business increased by 11 percent or more because of delays, wasted fuel and other traffic impacts, while only 9 percent of firms nationally said the same, according to the survey results.

Traffic delays and congestion have lead to more than 30 hours per worker per year of lost productivity for 21 percent of New Jersey companies, about level with the national average, the survey said. Meanwhile, 64 percent of survey respondents said they had made changes to schedules or business operations because of traffic congestion and unreliable shipping schedules.

For example, Del-Sano Contracting Corp., a Union-based general contractor, has implemented practices to adjust to traffic congestion near some construction sites, particularly those in the state’s urban areas.

The firm’s employees generally get to work sites early in the morning and on time, said Angelo Del Russo, the company’s president. But “if the traffic has mounted up and stalled, it could hold things up for deliveries” of construction materials, and in turn add overtime to the project, he said.

“There’s a planning process that goes on,” Del Russo said. “What we try to do is just anticipate ahead of time what the traffic patterns are around our particular sites.” The company will post signage a day or two before the start of construction to alert residents about the project in the area.

Also, “there is a need to have professional help from the local police department to keep [traffic] moving,” he said. For example, on one recent project in Union City, police had traffic patterns set up to allow 25 trucks delivering concrete to get in and out of the site as quickly as possible.

“We’ve taken these measures, and it lessens the impact” of traffic, he said.

Go to actual link:
http://www.njbiz.com/index.php?option=com_content&view=article&id=82244:report-traffic-causes-delays-lost-productivity-for-nj-construction-firms&catid=34:daily-news&Itemid=109