"We are now starting to see a little bit of a turnaround, and we are cautiously optimistic about 2014," says Roxanne Rivera, chapter president of the Associated Builders and Contractors, New Mexico chapter. "A lot of contractors are starting to see backlogs."

Labor Outlook Improves

As a result, construction employment is expected to continue its ascent in 2014. In Nevada, for example, the construction work force is expected to increase by more than 4,000 workers in 2014 and 6,000 in 2015, according to the Nevada Dept. of Employment, Training and Rehabilitation's Research and Analysis Bureau.

But, according to Bill Anderson, the department's chief economist, even if the state adds 10,000 construction jobs over the next two years, construction jobs will be 75,000 below the pre-recession peak.

"Arguably, the more modest and diversified growth we expect to see going forward will leave the state better positioned to weather future economic downturns," Anderson says.

Contractors throughout the region, though, know that the strength of the overall economy and the revenue generated for public and private owners are the ultimate harbingers of construction growth.

"The Southwest continues to grow, and we see needs for infrastructure to support it throughout the region. The challenge will come from funding," says James Bailey, Phoenix division manager for general contractor Skanska. "The key will be making sure the proper projects are pursued and that states pick the right delivery methods to deliver the public the best value for their dollars."

In its 2014 national outlook, McGraw Hill Construction is forecasting construction starts to improve by 9% in the coming year, for an estimated $555 billion in new construction contracts.

McGraw Hill expects a similar pattern for its West region, forecasting $130.1 billion in new construction for 2014, a 10% gain. These gains will be largely propelled by an expected 29% increase in residential construction.

In the nonresidential sector, $37.2 billion in new contracts are expected in 2014, with commercial and manufacturing contracts supplying the majority of that growth.