Post Tagged with: "Building"

Report: Construction Spending hits Record Amount in Southwestern Utah

Two engineers planningConstruction spending in Southwestern Utah, including for industrial supplies online or offline, reached a record amount in 2017, according to an NAI Excel report.

The report based its analysis on residential and commercial construction projects such as houses, hotels, offices and retail buildings.

Slow Recovery

NAI managing director Neil Walter described the record-high construction spending in Southwestern Utah as a “slow moving” expansion since 2010. Aside from building activity, the level of spending has been beneficial to the real estate market as well.

Property prices have climbed, while vacancy rates for residential and commercial buildings have remained at favorable numbers. Multifamily vacancies, for instance, have stayed below 1%. The declining vacancy rate also led to the expected addition of around 900 more housing units in 2018. Another benefit of the high construction spending involves jobs. The Department of Workforce Services expects the creation of more jobs this year, due to a positive outlook of most construction firms on the strength of the construction sector in the state and nationwide.

Construction Outlook

A majority of the construction firms in the U.S. expect higher demand for all services in 2018, according to Stephen Sandherr, Associated General Contractors of America (AGC) CEO. For this reason, these companies intend to hire more people to meet the projected growth in demand.

The AGC and Sage Construction and Real Estate’s survey showed that 75% of the respondents plan to expand their workforce this year. American contractors believe that the private office market will account for most of their projects. Transportation- and retail-related construction projects ranked next to their list, followed by water and sewer infrastructure.

Conclusion

A record-high increase in construction spending arguably benefits economic and job growth, as well as provide business to enterprises that depend on building projects. Where do you intend to launch your next project this year?

February 8, 2018 at 9:00 amDirections