Construction industry update in Arizona

Real Estate | 8 Oct, 2019 |

Construction is proving to be one of the most reliable business sectors, and a constant source of employment throughout the U.S. . Arizona and Nevada are among the leading states that have seen the highest growth of construction jobs in 2019. Arizona’s construction industry has bagged up to 4,500 jobs for the local population. It is the highest gain of employment among all industries in every state.

Growth in the Construction Industry

According to data released by the Arizona Office of Economic Opportunity, the construction industry in Arizona added 14,800 jobs which stands at a whopping 10.2% percent increase. According to another report, almost 150,000 people work in the construction industry as of June 2018. This number is still significantly less compared to 2006, during the housing boom in Arizona when more than 250,000 people were working in the construction sector.

Arizona’s Latest Construction Projects

State Route 189

As of June 2019, the Arizona Department of Transportation (ADOT) has begun the construction of the department’s largest project. Costing about $134 million, State Route 189 will give job opportunities to hundreds of prospective site engineers and laborers.

This two-year project will involve different crews and innovative equipment to aid in finishing the project by 2021.

Loop 202

Arizona’s biggest project ever, Loop 202 South Mountain Freeway Project. The project has already used the services of many engineers and employed a lot of laborers to finish the project by 2020. The ongoing project aims to reduce traffic on the existing freeways and local roads, by connecting west and east valleys. It will add 22 miles of  freeway to the current metropolitan transportation system.

Desert Diamond West Valley Casino

This is one of the highest funded construction projects Arizona has ever witnessed. With its groundbreaking ceremony held on December 2017, the project’s goal is to transform the 135-acre property into a fully-fledged Casino, a spa and a resort by 2020.  With the casino part of the project already completed, spa and resort components will be done in the next phase of construction.

With these construction projects, there is a swift increase in jobs and infrastructural investment in the areas surrounding the construction industry. Not only do we see a growth in employment, but many innovative techniques are being used to make sure that laborers are not putting their lives in danger. Companies like Dynatect are building equipment that assists workers in carrying out their jobs easily.

However, the continued growth of projects is demanding more and more skilled labor, which is not readily available. The shortage of labor workers is due to the recession caused after 2006, after which many people left the profession. But, the new projects are leading to a slow and steady recovery of the industry.

The corporate and industrial sectors are starting new projects, while the residential sector continues to benefit from modern housing schemes day by day. According to Tom Dunn, President, and CEO of Arizona Builders Alliance, he says that the growth in the construction sector was imminent. “The development of both public and private projects allows for these industries to get to market and provide these in-demand goods and services to the marketplace,” Dunn said. “Positive changes to the tax code, lessening of the regulatory burdens, public & private sector expansion, historically low-interest rates, the availability of investment capital worldwide. [These] pro-business and pro-growth policies are impactful towards economic prosperity.”

With such a sudden surge in the development of the construction industry, more projects and more innovative technologies are going to roll out in the future. If I were a betting man, I would put my money in Arizona becoming the hub of construction projects in the future.

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