WASHINGTON, Nov. 9 /PRNewswire/ -- Associated Builders and Contractors (ABC) today released its 2010 economic forecast for the commercial and industrial construction industry. "While the industry battled the effects of the recession in 2009, expect 2010 to be a transitional but sluggish year on the road to recovery," said ABC Chief Economist Anirban Basu.

"Through late 2008, the industry held up well, but 2009 was a year of retrenchment for many construction sectors, including those associated with private development and municipal projects," said Basu. "Overall, the nonresidential construction industry has been impacted by a combination of financing constraints, massive job loss and a lack of confidence in local economies across the nation due to falling tax revenues.

"However, the financial crisis that began in 2007 and deteriorated significantly in September 2008 also led to the introduction of a variety of policies designed to jump-start the economy, including the American Recovery and Reinvestment Act of 2009 (ARRA), which is now beginning to support water/sewer and road resurfacing construction projects," said Basu. "These segments are positioned to be among the big winners in 2010. Segments that are less closely aligned with federal spending are generally poised for another rough year in 2010.

"One of the bigger beneficiaries of the American Recovery and Reinvestment Act in 2010 will be the public sector. Public buildings - particularly courthouses and federal facilities in need of modernization - will receive a sizable increase next year due to stimulus funds reaching the market," said Basu.