As markets throughout the country continue to deal with the potential economic fallout of a national crisis, construction projects in the North Texas/Dallas-Fort Worth area have been thriving. In fact, Texas was number one in the nation when it comes to direct spending related to construction, as well as number one in total GDP output and jobs created. The lonestar state is booming – and it’s been a big boost to local businesses that supply materials and labor.
Commercial & Residential Construction Growth in Dallas-Fort Worth
Growth in both the commercial and residential sectors has been a huge boon to the construction industry in north Texas, resulting in an enormous amount of job creation, as well as plenty of manufacturing and inventory needs being generated.
On the commercial side of things, growth has been sustained and welcome. Commercial building starts increased 5% in January 2020 over the previous year, and nearly $1.8 billion in projects were started in the Dallas-Fort Worth area. This is on the heels of a record-breaking 2019 for the north Texas area, where commercial construction generated more than $54 billion in economic output in 2019. A truly eye-popping figure, and one that was head and shoulders above the rest of the nation.
The commercial construction juggernaut has done an excellent job in attracting new, high-profile companies to plant their flags in the Dallas-Fort Worth area, with Uber and Charles Schwab becoming the latest organizations to announce new operations based in north Texas.
Even with the massive growth and continued production in the commercial sector, residential construction still churned out numbers in a big way. As a matter of fact, the Dallas-Fort Worth area was among the top metropolitan areas that issued the most building permits for residential units in 2019 – the only area that issued more was Houston. The residential growth in the DFW area goes hand-in-hand with job creation, with an increase in employment of around 3% over last year.
How Has the Construction Boom Helped Local Business?
While major companies and families have certainly welcomed the explosion of real estate in north Texas, local businesses have been stepping up to provide the raw materials, manufacturing, and labor needed to keep the industry going.
Commercial projects are seemingly popping up by the day, with multiple opportunities in the works, including:
- Victory Commons – A 365,000 square foot office space
- The Link at Uptown – A 25-story, 300,000 square foot mixed use building
- The Harwood Hotel – A 230 room luxury hotel in the heart of uptown
- Cedar Maple Plaza – A 600,000 square foot office tower
With so many major projects in the works, it’s been imperative that suppliers are ready to provide companies with the integral material they need.
Local steel and metal product manufacturers have been at the front lines, delivering high-quality products to stand as the backbone behind the new projects breaking ground. Buying rebar, for example, is an essential component of nearly every commercial construction job in the area. The increase in commercial projects has meant that local family-owned businesses are meeting this demand. One example of this is Vitz Metals in McKinney, who delivers steel and metal to the greater Dallas-Fort Worth area. “We have had to be on top of inventory to ensure we meet the ever increasing demand,” says Andy Vitz.
Along with an increase in rebar, substantial growth in the amount of purchases related to I-beams and H-piles has brought plenty of work and revenue to local steel companies that manufacture these necessary commercial construction components.
These same local steel companies have benefited in a big way from the growth in residential construction as well. A huge increase in housing means an ever growing need for the essentials of residential construction, including these metal products:
By buying locally, these larger companies and builders contribute to the continued overall success of the north Texas economy. Not to mention the fact that construction companies and local builders alike have benefited tremendously from aligning themselves with trusted, local manufacturers that are able to meet deadlines and demand in a timely, efficient fashion.