The U.S. construction industry is one of the largest in the world, with approximately $1.4 trillion spent annually. The construction sector contributes more than four percent to the country’s annual GDP, and employs more than five percent of the American workforce. In November 2019 alone, there were $989 billion in construction starts nationwide.
A recent consensus forecast, which averages the predictions of eight leading research firms, concluded that the U.S. can expect a non-residential construction increase of +2.4 percent in 2020. The industrial segment, bolstered by an increasing demand for data centers, e-commerce distribution hubs, and manufacturing facilities, comes in even higher at an expected +3.3 percent growth this year.
The current skilled labor shortage is one of the largest factors that threaten to slow new construction starts in the U.S. In 2020, contractors are less worried about landing new construction contracts than they are about finding qualified workers to build them. Experts estimate that there are a record 375,000 unfilled construction jobs in the U.S.
Construction staffing companies like SitePro Solutions allow contractors to avoid costly construction pauses, and complete their projects on schedule. SitePro is currently matching skilled workers with reputable contractors across the Sun Belt and along the West Coast. These regions are home to some of the hottest construction markets in the country, including Atlanta, Dallas-Fort Worth, Phoenix and Seattle.
The Atlanta population is expected to increase steadily over the next thirty years, creating ideal conditions for a growth in multi-family residential development.
Much of the urban commercial construction activity is expected to surround the downtown Atlanta skyline. The year 2020 is should see more than $17 billion total construction starts in Atlanta, with $3.5 billion in commercial and manufacturing.
Recent tax legislation in Georgia makes it an attractive destination for data center development. Since the bill was signed, industry experts have noted a substantial increase in suburban data center activity, giving the Metro Atlanta market the potential to become a global data center hub.
Dallas-Fort Worth, Houston and Austin
Currently, Dallas-Fort Worth and Houston, including surrounding suburbs, are some of the fastest-growing communities in the country. For the sixth year in a row, DFW has led the nation in new multi-family residential construction, even beating out New York City.
The DFW, Houston and Austin regions combined housed approximately 24 percent of new office square footage built in the U.S. during the last ten years. Currently, the state’s construction pipeline is more than $425 billion, a number which also includes utility construction, mixed-used developments, and infrastructure.
With one data center under construction in Ellis County, and a second one planned for nearby Midlothian, Google has recently shown a spotlight on North Texas as a worthwhile destination for tech expansion.
Another city with a hot multi-family residential market is the Greater Phoenix area. Thanks to its affordable cost of living, there has been a consistent influx of new residents to Phoenix, creating a growing demand for rental housing. Based on current population growth, there is an estimated 20,000- to 30,000-unit deficit in apartment housing. This short rental supply makes Phoenix one of the top markets for multi-family residential investment opportunities in the near future.
The Metro Phoenix commercial real estate industry has been, and is expected to remain, consistently strong. However, the industrial sector is the real star of the Phoenix construction market. Fortune 500 companies including Amazon, Apple, Google, Intel, Microsoft and Nike have all opened – or plan to open – new data centers, distribution hubs, or manufacturing facilities in Phoenix suburbs.
Phoenix leasing experts report low industrial vacancies, and record-high rental rates, with no signs of slowing. Projections suggest the demand for logistics, manufacturing and distribution space will continue to increase, even if the overall construction industry starts to cool.
Home to tech giants including Amazon, Expedia and Microsoft, Seattle has grown into a tech hub not unlike Silicone Valley. Unemployment is low, and the job density is high, making Seattle yet another hot growth market for multi-family residential construction.
Approximately 8.8 million square feet of office space is under construction in Seattle. There are also abundant redevelopment opportunities there, with a high demand for new industrial and logistics construction in the suburbs. Commercial vacancy rates in Seattle are low, and continue to drop. All of these factors have contributed to a rise in construction employment in Seattle, with construction spending remaining above average for the nation.
Your Construction Staffing Partner
Contractors have found themselves competing with one another for skilled workers in trades including electricians, HVAC techs, plumbers, cable techs, and more. The imbalance of supply and demand for skilled labor threatens to cause an industry cooldown if the workforce simply can’t keep up with new construction.
The good news is that engaging with a construction staffing firm like SitePro Solutions can help contractors stay on schedule and on budget. At SitePro, we are constantly seeking out new talent in the skilled trades, providing our construction partners with a qualified workforce to keep the dirt moving.
To find out how to put SitePro Solutions construction staffing to work for your business, visit www.SiteProSolutions.com.