The construction industry has plenty of concerns going into 2006, but still is anticipating a healthy level of activity next year.


Commercial and public-works activity is expected to surpass that of 2005, with more road construction getting under way.


Home construction could be slow, but still would sustain a brisk clip.


We think Spokane is off and running in 2005 in a strong way, and its going to continue to get stronger in 2006, says Wayne Brokaw, executive director of Inland Northwest Associated General Contractors.


Kate McCaslin, president and CEO of Associated Builders & Contractors Inland Pacific chapter, says most of the contractors whom she knows are booked up with work through the winter and into spring.


For the most part, people seem to be pretty busy, especially for this time of year, McCaslin says. Everybody remains optimistic for next year.


Nonetheless, construction professionals continue to monitor a number of issues that the industry is facing. Building materials costs have increased substantially and continue to climb. The cost increases began with the price of steel going up almost two years ago, but now materials prices have risen on all fronts, McCaslin says. With reconstruction work in the hurricane-ravaged southeastern U.S. expected to be in full swing early next year, prices likely will continue their ascent.


Meanwhile, rising interest rates could slow activity, McCaslin says. Despite a number of rate hikes this year, though, such a slowdown hasnt occurred yet.


Brokaw says that with increased activity, another worry is that the construction work force has been depleted.


If it isnt replenished in the coming year through training and workers moving in from other areas, some contractors might not be able to find the laborers they need to handle some jobs.


Through the first 11 months of 2005, the cities of Spokane and Spokane Valley and Spokane County issued building permits worth a total of $866.2 million, up from the $647.9 million in permit activity during the year-earlier period.


For next year, a handful of large projects are on the books already.


Spokane Public Schools plans to begin work on a $54.8 million renovation and expansion project at Rogers High School, on Spokanes North Side, in January.


At the Riverpoint Higher Education Park, near downtown Spokane, the $34.6 million Intercollegiate College of Nursing building is scheduled to get under way next fall.


The $89 million expansion of the Spokane Convention Center will continue into next year as well.


Home construction likely will ease next year, and thats not all bad, says Craig Condron, president of Condron Construction Inc., of Spokane.


The pace will be slower than in 2005, which is not to say it wont be a good pace, Condron says. It will be a more manageable pace.


Early this year, Condron says, the company forced a slowdown, so that its staff and subcontractors could keep up with the workload better.


Even with the slowdown, Condron says the company will exceed its record year by between 10 percent and 15 percent.