Looking back at 2005, one can't help but wonder, What if? What if the hurricanes had taken a different course? What if the price for a barrel of oil was still $50? What if the prices for construction materials had remained steady, rather than increasing at astronomical rates? How different would the outlook be for 2006?

Perhaps the more pragmatic question to ask is: What now? While construction activity across the region will remain strong, the long-term effects of the events of 2005 dictate a more cautious and prudent forecast for growth.

Construction in the transportation sector continues to be strong, with activity clustered primarily in the Washington-Metro area; the "golden crescent" from Northern Virginia to the Hampton Roads; I-40 in the Triad area; and the I-85 corridor from Raleigh to Greenville, S.C. With the explosive growth in the D.C. metro region, which is the second most congested area in the country, both Maryland and Virginia are studying future projects on corridors leading into Washington or have projects under construction. The Virginia Department of Rail and Public Transportation and the Washington Metropolitan Area Transit Authority are also working together to improve public transportation, and the 23.5-mile Dulles Corridor Metrorail Project is moving quickly from the planning stage to reality. Air transportation will also benefit from ongoing expansion and improvement projects at Dulles and BWI.

North Carolina continues to widen and improve the major corridors of I-26, I-85, I-40, and I-77, as well as major thoroughfares leading to the coast such as I-74 and US-601. The state has also initiated the "Strategic Highway Corridors" (SHC). Ongoing transportation planning and construction in North Carolina are critical in the state's strategic plan to become a transportation and logistics hub for the country.

South Carolina is focusing much of its construction effort on the Spartanburg/Greenville area, which is one of the fastest growing parts of the state. Work continues on the I-85 corridor as well as I-585/US-176 and SC 296 around Spartanburg and I-385 in Greenville.

The most important construction project in the state, however, is the proposed I-73 highway, which would eventually link Michigan to South Carolina. South Carolina's portion of this new route would link I-95 and areas west to the Grand Strand. The project is currently undergoing environmental impact studies.

In the metro-D.C. area, government growth and the resulting influx of government contractors and support businesses have meant an increase in the construction of office space and mixed-use developments to accommodate the thousands of jobs — and new residents — that come to the area on an annual basis. Prince William County, Virginia, will see the construction of Wellington Glen, a development that will include a 1.2 million-square-foot business park, 624 multifamily residential units and an 80-acre park, in addition to the $300-million, 1 million-square-foot Quantico Corporate Center. Meanwhile, the cost of office space in downtown D.C. has surpassed properties in Manhattan and Los Angeles on a per-square-foot basis.

North Carolina and South Carolina are both benefiting from numerous firms relocating to the area and the construction of new manufacturing facilities in the region. Computer giants Lenovo and Dell, asphalt equipment manufacturer LeeBoy, National Gypsum, resin-manufacturer DAK Americas, and Dole Food Inc. are just a few of the companies who have invested millions of dollars in new or expanded facilities. Construction of speculative office space is also proving to be successful and selling well.

South Carolina has also become home to many new businesses, including those that are relocating from its neighbor to the north. Several companies such as Sharonview Federal Credit Union and CitiFinancial are relocating their offices to York County just across the border in order to take advantage of South Carolina's lucrative corporate incentives.

By far, though, the most intriguing developments in Construction's region will be construction of facilities for the biotech, pharmaceutical and medical industries. The I-70 and I-270 corridors in Maryland continue to add biotech industries to the region with the recent announcement that MedImmune will build a second manufacturing plant. And Human Genome Sciences recently completed a 290,000-square-foot, $250-million manufacturing plant near Rockville. Hospital systems in the Maryland/Virginia also continue to add to their facilities; for example, a $100-million expansion and renovation of St. Joseph Medical Center in Towson over the next five years.

The same trend holds true for the Carolinas, particularly North Carolina. Financier David Murdock, who owns Dole Food Co., is building a $1-billion biotechnology research campus on the 250-acre former Pillowtex Corp. plant and an adjacent 100 acres in downtown Kannapolis. Murdock is also building a $54-million vegetable processing plant and a frozen fruit packaging plant in North Carolina. In addition, pharmaceutical giant Roche, producer of the anti-viral flu drug Tamiflu, has identified Holly Springs as its first choice for construction of a $750-million plant.

Despite the weather catastrophes of 2005 and their aftereffects and the looming specter of higher materials and gas prices, the construction industry still holds the promise of strong growth in the region and success for contractors.