Los Angeles2018-09-26T12:41:27+00:00
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LOS ANGELES–LONG BEACH-ANAHEIM

The Los Angeles-Orange County market is now projected to peak in 2018 after a strong ramp-up from 2013 to 2017, averaging 7.3% annual growth for the last six years.

Construction volume in 2019 is forecasted to decline an average of 2.8% annually through 2020. After bottoming out in 2010 at $27.6B (2009$), the market is expected to reach $45.9B (2009$) this year, falling short of the $51.6B high-volume mark reached in 2006. The recent surge in residential, commercial, mixed-use, tech, and healthcare projects continue to strain available labor resources. Steel erectors, welders, plumbers, pipefitters, sheet metal workers, and electricians are in tight supply. Labor costs continue to increase as contractors compete for available skillsets. Opportunistic pricing caused by the 232 tariffs is impacting steel and aluminum costs, putting upward price pressure to projects. The application of the Section 301 tariffs will also affect a large array of goods from China, creating further upward pressure on materials. Many private and public large-scale projects are under consideration; however, concerns over rising construction costs, labor resource restrictions and potential tariff impacts are resulting in increased scrutiny on feasibility of projects. Infrastructure, industrial, commercial and hospitality remain strong at the moment although increase in volume in these areas could appear post 2020.

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