South Central
Texas and California are the two largest construction markets in the country.
Just as California drives most of the spending in the Southwest, Texas dominates construction spending in the South Central region. A typical day here will see around 1,200 new residents – a trend that we expect to continue, particularly around the Texas Triangle. This influx has led to rising labor and materials costs, driven by the demand for new construction. Typically, contractors look for labor resources from other regions when demand increases. For example, a general contractor in Chicago might bring in workers from Milwaukee to meet deadlines. However, in this case, such options aren’t feasible, as neighboring areas are also experiencing similar surges in construction. The costs associated with bringing plumbers in from Tulsa, El Paso, or New Orleans are too high to make these feasible options. Instead, businesses must accept higher labor costs.
Outside of Texas, oil and gas refineries have attracted significant attention, thanks to the oil fields along the Gulf Coast. We will discuss these in greater detail later in this report. Data centers are also going up across the Deep South. These can be built anywhere with cheap land, plentiful electricity, and lots of water access – things that states like Louisiana and Mississippi have in spades. As commerce continues to move online, demand for these facilities has only accelerated. New projects are announced each week, making it difficult for contractors to keep up.
* Other structures include religious buildings, amusement, government communications, and public recreation projects.

Source: BuildCentral
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