Here are the factors influencing Texas commercial construction projects—and why it’s okay to feel hopeful.
It’s no secret that the construction industry has been dealt some harsh blows in recent years. And many factors remain unpredictable. But there’s ample reason to start thinking positively.
FraserCon has over 20 years of experience in the construction industry. As concrete contractors, we’ve seen it all, and we know a thing or two about how the industry has evolved.
Recently, we came across this article forecasting the construction industry in Texas, and we had a few thoughts. So here’s our take on what’s going on with the Texas construction industry:
The construction industry’s talent pool is shrinking.
Many industries suffered massive job losses during the COVID-19 pandemic, and construction was no exception. As a result, many construction projects were deemed non-essential, so progress ground to a halt for months. As a result, thousands upon thousands of people were out of work while the industry sat in a holding pattern.
Thankfully, much of the industry is recovering—but it’s not back to where it was before the pandemic. Most construction companies and contractors have massive backlogs to work through. As a result, they’re incredibly eager to hire.
Residential contractors were the first to start hiring in earnest. But we’re seeing more job postings for nonresidential work. So much hiring activity indicates that we’re moving in the right direction. And the construction industry is a great place to work.
Supply chain bottlenecks remain challenging.
Ongoing supply chain issues may be the biggest problem currently plaguing the construction industry. Contractor just can’t get their hands on the supplies they need. Lumber, steel, and concrete slab are just a few commodities that have been hard to come by. And what little is available is astronomically expensive. As a result, contractors have been forced to dramatically change the prices on projects they quoted before the pandemic. As a result, some projects are being delayed or canceled altogether due to budget constraints.
The only solution is to work with contractors who have ample experience. All those years in the business yield strong relationships and deep supply chain knowledge. In addition, experienced contractors can help you navigate the unexpected and find creative solutions to keep your project on track.
Economic recovery is really ramping up for the construction industry.
In spite of these setbacks, all signs point to the Texas commercial construction industry flourishing in 2022 and beyond. And the ripple effects may be far-reaching: The construction industry could contribute mightily to the economic recovery process.
Second only to residential, infrastructure is poised to be the biggest construction industry segment over the next few years. President Biden signed off on the Infrastructure Investments and Jobs Act (IIJA), a $1.2 trillion infrastructure package, last year. This means more work for contractors and materials suppliers, as well as more jobs for American workers.
And Texas is getting a big cut of that money. $35 billion has been designated for the Lonestar State. The money has been earmarked for a few specific things over the next five years, such as:
- Airports
- Bridges
- Electric vehicle (EV) charging infrastructure
- Highways
- Public transportation
- Transportation safety
Texans can handle it. So can FraserCon.
“No state can survive a recession quite like the Lonestar State.” Texas has a long history of weathering economic downturns well. Our economic diversity is a big part of it. Texas is home to a highly diverse blend of market sectors and industries. We’re not vulnerable to statewide collapse if one sector goes under. And our real estate prices were stable all throughout the Great Recession.
The past few years have been long and unpredictable. Thankfully, there are many reasons to feel hopeful. Construction projects are underway again. It’s becoming a little easier to source materials. And the construction industry is getting a big payday that’ll keep us going for several years.
At FraserCon, we’re big believers in staying positive. We’ve made it through a real roller coaster since early 2020, but we pulled through. We’re still here, and we’re ready to help you bring your most ambitious construction projects to life. It’s been our mission and our honor for over 20 years.
If you’re looking for a reputable, experienced concrete contractor in the Dallas-Fort Worth area, give us a call.
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