Business is still booming in Bermuda's construction industry despite a significant downturn in the global economy.

Alex DeCouto, president of the Construction Association of Bermuda, said that the mood in the sector was upbeat, based on the experiences of his own company Greymane Contracting Ltd. and others in the industry he has been in contact with.

And he reckons that as long as the Island can keep US dollars flowing into its economy to fund the capital for building projects, the future looks bright for construction as a whole.

"I can't really claim to have scientifically measured the 'mood' in the industry, but based on our company's experiences and those of the people that are in regular contact with me, I'd have to say that the mood is still quite positive," said Mr. DeCouto.

He said the construction industry goes in two- to three-year cycles and the signs were that the sector will remain active over that time. There had been a fall in construction spending in the preceding 18 months, during which private sector housing development had softened. But now Government was pushing the low cost housing market and the Police Station project, which was balancing that out.

Mr. DeCouto claimed that many of the on-going major projects will push ahead because their funding came before the bottom dropped out of the mortgage-backed securities market. He believes that there will always be a lag against what is happening in the overall economy due to the time taken to get a development online, as planning and funding need months or even years to be completed.

"This is not to say that there may not be people out there experiencing lean times," he said. "Certainly I have fielded phone calls from people in the industry that point to a slow down in residential renovations and interior office fit-outs. Luckily a number of commercial projects have gotten off the ground to balance that out.

"Workers will move from project to project as work ebbs and flows between companies and sites."

Government's Department of Statistics recorded more than 800 companies in an industry of 4,000 workers, indicating that there was room for some consolidation. Because construction's labour market is highly restricted and regulated, it had been easy for someone start their own company, and it was the leading sector for entrepreneurs.

Looking specifically at hotel projects in the future, Mr. DeCouto said he had not seen anything to convince him that hotel funding was going to be even harder to secure now. He said there were a number of developers doing their best to make it happen and he thinks one or two of the proposed projects, including Club Med, Ritz, Coco Reef, Horizons, Elbow Beach, Golden Hind, Southlands, Wyndham and Lantana will have a chance of going ahead.

"Everyone else's financial models will collapse if a major new hotel gets on line before theirs does," Mr. DeCouto said. "Those critical of these development plans should take a step back and put this in perspective. They are not all going to happen, at least not within any remote proximity of each other (in time)."

He said predicting further afield was like reading a crystal ball, with other industries such as tourism relying on the construction sector.

"Construction is fed by capital which is in turn fuelled by a healthy economy," he said. "Assuming we can keep US dollars flowing to the economy, I don't see anything specifically to be overly concerned about, at this point.

"Tourism is not going to turn around without another hotel or two. We just can't fit in any more tourists without the additional beds. I hope we can get one or more of these developments off the ground because the balance of the industry, and the Island, needs it.

Gerald Smith, owner and mechanic at GVS Plumbing, who has been running his own business for the past year and has a staff of four, said there would always be demand for plumbing work on new builds and properties where renovations were being carried out.

"The construction industry out here is definitely booming at the moment," he said. "I do not know how many years we have got out in front of ourselves, but plumbing will always be in business, with residential plumbers working 24-7.

"I cannot see it stopping - my phone has been ringing off the hook."

Orville Campbell, owner and project manager of CAP Maintenance, which does construction work, cleaning services and landscaping, said a lot of the work was going to the big companies, with some of the smaller firms losing out.

"If you look around the city the big buildings are being financed by the banks and are being done by the big companies," he said. "I am optimistic and I am hopeful that we will see some positive turnaround in the future.

"The major downfall right now is what has been happening in the US, as a lot of people cannot afford to pay their mortgage on time, and it has an impact on the economy over here."

• The Construction Association of Bermuda is a self-monitoring non-profit association that aims to represent its members fairly and consistently, to Government, with which it has partnerships on a number of issues, including certification, licensing and training, and the public. It awarded $50,000 in scholarships this year to Bermudians studying construction-related degrees oversees. To become a member or for more information visit the website at www.constructionbermuda.com.