Construction is Improving, Just Look at the Data
Back in January 2011 the general feeling amongst commercial contractors was one of optimism for the coming year. However the optimism was quickly squashed due primarily because there was no significant increase in projects in the planning and bidding phases. So 2011 became another year of survival for many contractors large and small in Arizona.
Fast forward a year and there is a reserved yet optimistic sentiment in the construction market now. There is data to support that these feelings are not false. The number of commercial construction projects bidding in the first quarter of 2012 is up 102% from the first quarter of 2011. For the same period the publicly bidding projects are up a whopping 166%. These numbers support the optimism in the market for 2012.
Another excellent future indicator, that the market has shifted in a positive direction, is the amount of projects in the planning phase. The amount of new projects in planning is up 40% from Q1 2011 to Q1 2012. Why is this number lower than the bidding increase? Simply because many of the recently bidding projects were in the planning stages in 2011. This sustained and upward trend of planning projects in 2012 helps support the prospects of growth in 2012 and possibly 2013. In Arizona there are over 600 projects in the planning phase right now. These projects will likely bid in 2012 and 2013, so the pipeline going forward is looking strong, which is a positive change from the last several years.
Yet another good sign of growth is the number of new ground up projects for 2012, which is around 300 and growing. This new construction is an excellent sign for all construction trades as it typically means larger and more expensive projects. These new large projects should help shift the market back to its normal cycle where the bigger contractors chase the larger jobs and more opportunities open up for the smaller contractors.
These data are well and good but to be win more projects contractors need a tool to find this work. ConstructionReports.com is Arizona’s only locally owned and operated construction lead service covering the entire state. If you want to know where the bidding projects are and who you need to bid to, look no further. Call today, 480-994-0020 or click here to register for a free look