Indicators Point to Healthy 2017 Economic Climate for NAED’s Western Region

As home to some of the fastest-growing metropolitan areas in the nation, electrical distributors, reps, manufacturers and electrical contractors in the National Association of Electrical Distributors’ Western Region can expect a decent flow of business this year.

Gains in construction employment, population growth and a healthy amount of large project business underway and in the pipeline should drive electrical sales in 2017, according to an analysis by Electrical Marketing (see chart on page 2 for the 2017 electrical sales potential in the region’s 50 largest metropolitan statistical areas (MSAs)).

Several of the largest markets in NAED’s Western Region were among the nation’s leaders in overall construction employment gains over the past year (Nov. 2016 compared to Nov. 2015), according to an analysis of U.S. Bureau of Labor Statistics (BLS) data done recently by Associated General Contractors, Arlington, VA. Denver-Aurora-Lakewood, CO. (+9,600 jobs, 10%) added the most construction jobs during the past year, followed by Seattle-Bellevue-Everett, WA. (+8,100 jobs, 9%); and Las Vegas-Henderson-Paradise, NV. (+7,900 jobs, 15%). When ranked by percentage gains over this period, Boise City, ID (21%, 3,900 jobs); El Centro, CA. (17%, 500 jobs); and Albany, OR. (16%, 400 jobs); were among the nation’s leaders.

On the flip side, the region also had several metros ranking among those suffering the most construction job losses, including Houston-The Woodlands-Sugar Land, TX (-12,700 jobs, -6%), and Los Angeles-Long Beach-Glendale, CA (-4,400 jobs, -3%). When measured by year-over-year construction job losses on a percentage basis over this period, Casper, WY. (-15%, -500 jobs); and Wichita, KS. (-12%, -2,100 jobs) have suffered the most.

Many states in NAED’s Western Region also enjoyed the benefit of massive amounts of population growth over the past year and in some cases were among the nation’s leaders, according to some new data from the U.S. Census Bureau. When ranked by total population change from 2015 to 2016, the region had eight of the 10 states with the highest percent increases — Utah (+2%); Nevada (+1.9%); Idaho (+1.8%); Washington (+1.8%); Oregon (+1.7%); Colorado (+1.7%); Arizona (+1.7%); and Texas (+1.6%).  Six of these states also were among the nation’s leaders when measured by total annual population change over this period — Texas (+432,957); California (+256,077): Washington (+127,710); Arizona (+113,506); Colorado (+91,726); and Oregon (+68,831).

The region is home to construction projects underway or on the drawing boards worth billions of dollars. San Diego has 63 projects either approved, underway or under review that are worth an estimated $6 billion, according to a report in the San Diego Union-Tribune; the Mayo Clinic in Rochester, MN, has plans for $6.5 billion in new research facilities over the next two decades (www.startribune.com); Dallas is planning a $3.5 billion midtown redevelopment project, (Commercial Property Executive); the National Football League’s LA Rams are planning a $3 billion stadium in Inglewood, CA (multiple reports); and a $2.7 billion rail project is under discussion for LAX in Los Angeles (www.mynewsla.com).