While Las Vegas heats up, Arizona growth is a bit more tempered, according to Marty Hedlund, Sundt Construction manager for the Southwest district.

"We are seeing steady, though slower-than-hoped-for growth in the construction economy," Hedlund says. "Areas like southern New Mexico and El Paso are showing progress, but Arizona seems to be a bit stuck in the purgatory between paranoia and cautious optimism within the private sectors."

Potholes on Recovery Road?

Several legislative and governmental actions on the horizon could greatly impact whether or not contractors should expect a boom or bust in the future.

With the Grand Canyon state still recovering from years of tight budgets, public funding for facilities is a key issue. The Arizona Board of Regents is seeking $1 billion from the state Legislature in the next session for research buildings on the state's three university campuses by 2020. Also, if a proposed $900-million Maricopa County bond election for health care facilities passes, it "will rejuvenate the moribund health care construction market," Hedlund says.

In Nevada, Question 3, which would raise funds for school construction by placing a 2% tax on the gross revenue of any business, is being targeted for defeat by numerous industry groups and many large and small contractors. According to research performed by the Coalition to Defeat the Margin Tax Initiative, the construction industry would be particularly affected because at each level of the supply chain companies would have to pay the tax on revenue that had already been subject to the tax at prior levels.