26 Jun 3 Construction Trends in Texas
We all know the economy has been left in disarray by the COVID-19 global pandemic. A massive increase in unemployment rates to double digits. The end of the longest growth period in U.S. history, huge swings in the stock market, and most importantly, an overall sense of uncertainty as to what happens next, as states begin to reopen. Texas has weathered the storm of coronavirus better than most states. Here’s a closer look at the status of the economy and construction trends in the Lone Star State.
1. Texas is #1
All of us who live here already knew this. In the month of May, it was also true for construction. The I-635 widening in Dallas was the largest nonbuilding project to break ground nationwide. At an estimated value of over $1.74 billion.TxDOT expects the project to last four years. Creating or continuing thousands of jobs in the DFW area.
2. Residential and Education Sectors Growing
The Residential and Education sectors are forecasted to be the top growth sectors for construction in 2020, at 6.4% and 6.3% respectively, based on a 2019 study by Cummings. Everyone needs a place to live and Texas had the biggest increase in the population of any state in the country from 2018 to 2019, and most of the counties with large population gains over the last decade, according to the U.S. Census Bureau. That growth is expected to continue in 2020. Combine those stats, along with the fact that education construction is largely government-funded with long planning timelines, and these sectors should not see any decline the rest of the year, despite COVID-19. This bodes well for helping hold up the overall construction industry in Texas.
3. DFW Construction Continues to Grow
The construction industry in Dallas Fort Worth has enjoyed outstanding growth over the last decade, with unemployment rates declining every year, to a low of 3.3% for 2019. Construction in DFW employs over 234,000 trade workers (not including management jobs), also a record high over the last decade, according to Cummings data. These positive construction trends appear murky after COVID-19. The remainder of 2020 will likely be volatile as the coronavirus numbers will have an impact on the overall economy. Previously paused projects are beginning to ramp back up, and RFP’s are starting to flow again. As governments, corporations and schools navigate budgets and uncertainty, one thing does remain certain. Families and workers will need places to live and do their jobs. Tarrant Construction is diversified, steady and ready to help businesses and institutions as they shift, and remodel spaces to meet the demands of a “new normal”.