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Texas Construction: Green Shoots of Recovery?

Author: Chris McCay

Published date: 2021/04

Texas Construction Green Shoots Of Recovery

2021 hasn’t got off to the best start for the Lone Star State. February saw millions of Texans left without power after a huge winter stormswept across the southern US. Additionally, analysis by the Associated General Contractors of America has confirmed that Texas lost the most construction jobs than any other state since the coronavirus pandemic. It declared that 35,600 jobs were lost in Texas, followed by New York (30,900), Florida (17,500), and New Jersey (16,700).

From November 2019 to November 2020, the Houston metropolitan statistical area lost more construction jobs than any other major metro area in the country at 22,500 jobs, accounting for 9% of the local construction job market.

Industry insiders confirm that recovery will be slow, with 2023 cited as the year that construction will fully recover from the impact of the pandemic. However, despite the challenges, movement in the industry is already starting to accelerate in 2021. 

Data from construction bid management tool, ConstructConnect, indicates that public sector projects are currently a driving force in Texas. Over the last 90 days, public construction awarded contracts outstripped those in the private sector by 25%.

Education is a high-growth area, with more than half of the 1,431 projects awarded worth in excess of $1million. Projects delivering public services, ranging from parks and playgrounds to community centers, are also set to get underway in 2021, with over 1,500 contracts posted over the last three months and 27% valued at over $1million. 

Renovation will lead over new builds for both the private and public sectors this year, accounting for 47% and 27% of projects, respectively. In fact, new builds account for just 10% of all public sector projects awarded.

Of course, construction sector recovery will take some time. The number of awarded projects over the last 90 days is significantly less compared to pre-pandemic levels. However, increased movement in the public sector, coupled with 40% of all Texas projects valued at over $1 million, confirms that work is stepping up, which, of course, is excellent news for the state’s construction jobs market.

​PRS in Texas

PRS is a leading expert in professional built environment recruitment services. Having developed a strong track record for placing exceptional Field, Project Management, and Pre-Construction talent into businesses worldwide, we have established a new division to exclusively serve the US market. 

Operating in Houston, Dallas, Austin, and San Antonio, PRS USA is actively recruiting for public and private sector roles to help our clients complete a series of high-profile construction projects. For more information about how we can help secure a position or find the right professional, contact Chris McCay on 281.779.4186 or email Chris.McCay@prsjobs.com