Contractors looking for work in the Gulf South will find no shortage of projects in all sectors of the industry. Rocked by both Katrina and Rita, the Gulf Coast needs major rehabilitation. An estimated $250 billion in insurance, private, and federal money should pour into the region for reconstruction.

Louisiana economists are saying that the state has lost a decade of economic growth, and that the population has decreased by half a million. When all the chips fall in 2006, Baton Rouge will replace New Orleans as the largest city in Louisiana. Meanwhile, the doubled population in Baton Rouge is causing traffic congestion and other infrastructure issues that will need to be addressed, especially if it wants to attract the job growth necessary to sustain such a population.

The Port of New Orleans is vital to the nation's trading — which leaves no question that the city will come back. The destruction within the city is tremendous, the work is plentiful, and the money is pouring in. The large inflow of funds expected from the federal government, insurance payouts, and companies with major investments in the city will cause construction to explode in the next 2 years.

As the reconstruction of the Gulf Coast gets under way, demand will rise for building materials, and prices will follow suit. Replacement construction for major structures will produce rising cost pressures for equipment and labor, especially concrete and steel. With only half of the city's population returning, the city is looking at serious labor shortages. This will drive up wages for qualified tradesmen and equipment operators. The price of equipment could rise as well, especially in areas surrounding the Gulf Coast whose resources have been tapped during this time of crisis.

Louisiana is looking for over $32 billion from the federal government for infrastructure repairs and improvements, including an elevated six-lane replacement bridge to replace the Twin Span between Slidell and New Orleans. The plan also includes upgrades to the ongoing coastal restoration plan and hurricane protection levees. Both are critical in protecting south Louisiana's communities from flooding.

This package should be a big boost to highway construction in the area, although there was plenty of work before the storm. Among other state projects, the TIMED program continues to accelerate toward an early completion of 2010, with plans for four-laning many of the major routes across the state, one new cable-stay bridge across the Mississippi River in St. Francisville, and major upgrades to the Huey P. Long bridge in New Orleans.

Plans are currently in motion to bring the Superdome back into operation. Trahan Architects of Baton Rouge will lead a commissioned team in planning its recovery. The local economy in New Orleans relies heavily upon tourism, so this is a major step in bringing back the conventions that will bring in the tourists.

Thirty percent of the nation's oil comes in from the Gulf of Mexico, as well as 20 percent of the natural gas production, and 10 percent of the nation's refining capacity. No prolonged shortages are predicted; however, the damage to the Gulf Coast's drilling and refining infrastructure is still being repaired. Refineries in the area are either shut down or producing at a reduced rate. Onshore crude oil and gas production in the region is still below 60-percent capacity.

SAFETEA-LU took some of the uncertainty out of highway funding, but material volatility was holding many DOTs hostage, even before the hurricanes. Just this past June the Louisiana DOTD faced rebidding of the LA 1 project when the lowest bidder came in at $98 million over budget. Material costs and higher labor costs due to low unemployment in the area were key factors in the decision to rebid.

The Oklahoma Department of Transportation began revisions of its eight-year construction plan after the hurricanes hit due to similar concerns. Uncertainty in federal funding and rising construction costs made reconsideration of the budget a necessity, but not before Oklahoma City's I-40 Crosstown Expressway broke ground in November. Work on the $360-million project will continue into 2008.

Casinos on the coast of Mississippi have the go ahead to build inland, thanks to a new onshore gambling law. Because the structures were not built on solid ground pre-hurricane, many of them were decimated by the tidal surge of Katrina. The gambling industry is vital to the Mississippi Gulf's economy. According to the Mississippi Gaming Commission, the industry generates $500,000 a day in state and local taxes. Building inland should give the industry a better chance of bouncing back after Katrina. Many of the casinos are already doing so at record speed. Treasure Bay plans to build a two-story structure on the south portion of its existing hotel tower, which should begin in March, and last six months. Most casinos in the area plan to have, at the very least, temporary facilities up and running in 2006.

Arkansas and the Memphis area are seeing little change in 2006. The Bentonville building market is still booming, with Little Rock close behind. The market in Memphis remains steady.