Big Is ‘In’ Again

Megaprojects and new development are in vogue again across the Southwest

In addition to Las Vegas' renewed activity, other areas across the Southwest are similarly expanding. In Arizona, where high office vacancy rates stalled new construction over the past few years, the largest office development in the state's history—the 2,000,000-sq-ft, $300-million Marina Heights project being developed by Ryan Cos. and Scottsdale-based Sunbelt Holdings—is under way in Tempe on land owned by Arizona State University. And ASU will use some of the revenue from that deal to renovate adjacent Sun Devil Stadium.

Also, a $500-million modernization plan at Sky Harbor Airport in Phoenix will begin more than six years after it was initially proposed.

New Work a Force for Employment

The Southwest construction labor force is bouncing back

When an industry hits bottom as hard as construction did in the downturn, rebuilding the labor force when work picks back up again isn't as easy as simply calling laid-off workers back to the job.

However, the impact of lost tradespeople is not as pronounced in the Southwest as it is in other areas of the U.S. because employment levels here are still significantly below peak levels. For example, Arizona labor statistics for November estimate that total construction employment hit 124,400—a gain of nearly 8,000 jobs. But at the height of the boom, 247,500 were employed.

Mark Minter, president of the Arizona Builders' Alliance, says any shortage of workers is not necessarily new to firms in the Southwest.

Solar Still Shines in the Southwest

Sun power will keep many firms energized through the recovery

California is be the biggest player in the solar power playground—the state accounts for nearly 42% of all solar power generation in the U.S., according to NPD Solarbuzz. But Arizona is second with 12% and Nevada fourth at 6%. New Mexico, on the other hand, is a new player. First Solar is developing the Macho Springs plant near Deming, which will provide 50 MW of power over the next 20 years.