While the forecast for the Seattle market predicts a decline in volume after a prolonged run, the market has yet to soften currently.

Several large-scale projects are seeing significant pricing pressure. The is limited anecdotal evidence that the residential sector may be slowing, however, the remaining sectors for the most part continue at a strong pace. Bid coverage continues to be limited for many projects. General contractors are commonly seeing only one or two bids on many bid packages for key subcontractor trades, such as conveying, curtainwall, drywall, mechanical, and electrical. Given the complex nature of many projects in the Seattle area, there is a limited pool of major subcontractors that can successfully perform this work. As a result, premiums are being seen in the subcontractors’ pricing. To compound the issue, Sections 232/301 sanction impacts are driving up material costs for many commodities, including: structural steel, reinforcing, metal studs, sheet metal, etc. While it is very difficult to predict the exact timing for a volume decline, Seattle appears to continue its torrid pace for the remainder of the year and into 2019.

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