Florida's construction industry predicted to grow, some areas more than others

Posted by IronPlanet on Aug 6, 2012 11:55:00 PM

Across the nation, construction companies are seeing more work, which means jobs are being created and construction equipment - such as backhoes, excavators and cranes - is being purchased. Some areas of the country are doing better than others, and Florida is one of the states experiencing a boom in the construction industry.

In fact, specialty trade contractors and building construction are expected to be the two fastest growing industries in the Sunshine State in the coming eight years, according to the Tampa Bay Times. Jobs in specialty trade contracting are predicted to grow 4.1 percent annually and building construction jobs will increase an estimated 3.3 percent each year through 2019. Overall, experts from Florida's Department of Economic Opportunity predict the construction industry will improve an average of 3.6 percent.

However, some areas of Florida are likely going to do better than others. For instance, Tampa Bay is expecting a major boom in the construction industry, as new home construction in the Bay Area was up 24 percent over the numbers from 2011, the news source indicates. While experts do not believe the industry will even come close to its peak in 2006, they are predicting roughly 25 percent growth in the next few years. In 2006, housing starts were at an estimated 23,000, while they sunk to about 4,000 during the worst period of the recession.

"No question the worst is past for Tampa Bay," Tony Polito, who tracks home starts in the area for Tampa's Metrostudy, told the news publication. "[Construction] is all trending in the right direction, and that's the biggest issue with job creation going forward."

While there is hope for the industry in Tampa Bay, construction jobs are slow to catch up. The Times indicates there were only about 307,000 jobs in the industry in June, which is 56 percent lower than during the peak in 2006. This should start to improve along with the increase of new projects.

Not all Florida areas have such a positive outlook as Tampa Bay. Jacksonville, for instance, is most likely not going to see as much success as the rest of the state, according to WJXT-TV.

"Jacksonville was hit really hard with the housing boom and bust, and our foreclosure rate has been higher than most of the other cities in the state," Candace Moody, a spokesperson for Jacksonville's WorkSource, told the local news network. "They're expecting 6,000 to 7,000 new houses to start [in Tampa Bay]. In Jacksonville, it's more like 350 housing starts - so big difference in the industries from place to place."

Topics: Construction, Industry Headlines