“However, as they wind down projects and exhaust resources, the industry will need to look for the private sector to come back and spend those dollars again. This is happening, but at a slower pace than we would all like.”

The good news comes from a recent upturn in multifamily and private-sector office projects in the region and the resulting rise in construction employment. A mid-April report from the Associated General Contractors of America, based on an analysis of federal employment data, found that the greater Denver area is leading cities across the country in construction employment gains, adding 6,300 construction jobs in the past year. Most, but not all of that gain, is from increased private-sector work.

“We are seeing a re-invigoration in the private commercial markets,” says Greg Schmidt, president of Saunders Construction Inc., Denver. “This includes dusting off projects placed on hold during the recent recession as well as new developments coming online, including multifamily housing, retail, manufacturing and some activity in the office market. In addition, we see continued growth in health-care and data center/mission-critical projects.” 


However, most regional contractors, including Schmidt, point out that the industry is still suffering from lean conditions and working with reduced resources. Those obstacles are aggravated by concerns over the health of the subcontractor and trade communities and uncertainties about the ongoing weakness of the economic recovery.

Still, some public agencies are finding ways to fund their capital projects and hit their annual maintenance targets. “We have seen project starts pick up momentum in the Mountain States region,” says Tom Horsting, senior vice president of general contractor Adolfson & Peterson’s Rocky Mountain Region. “While funding is still tight, we are seeing municipalities and educational institutions become more creative in finding funds to build necessary facilities.”

However, most A/E/C firms in the region are waiting to see whether private projects can make up for the loss of institutional work this year and in the near future. In the meantime, most continue to diversify their geography, services and client base, while keeping a close watch on expenses.