The health of Seattle’s construction industry can be measured by the forest of cranes that are towering over the downtown skyline.
According to the Rider Levett Bucknall Crane Index, the 51 cranes in Seattle over the first quarter of 2023 was the most for any city in the United States.
The multitude of cranes stands as a testament to the numerous large-scale projects underway in the city, says Michael Harder VP and general manager of Mortenson.
“We have a very strong economy in Washington state, supported by innovative companies, and we have recently experienced significant job growth,” Harder says. “Therefore, I am confident that we are in an excellent position compared to the rest of the country.”
This analysis is corroborated by Dodge Data & Analytics’ assessment of project starts. Although 2023 total starts for the city are expected to decline to $14.7 billion, the overall trend has been upward. Between 2020 and 2022, project starts increased by more than 7%, with a projected growth of 9% in 2024 compared with 2022, Dodge reports.
And, according to Washington State Employment Security Dept., the employment in construction is up 8,700 over the past 12 months, led by an increase of 4,500 jobs for specialty trade contractors.
Seattle’s performance in certain areas has been particularly robust. Dodge noted that the city ranked among the top 10 markets nationally with $6.8 billion in commercial and multifamily starts during the first half of 2022.
That performance could be seen in the 2022 Northwest Top Starts list. Two of the top construction starts in the city last year were the $400-million Civic Square Residential Condominiums and the $162-million Unison at Elliot Bay.
Another sector that has remained steady after reaching a peak in 2021 is education. However, the region is not immune to the broader economic concerns affecting the construction industry. While pandemic-related challenges such as disrupted supply chains have improved, shortages of staff and materials persist. Costs have cooled off slightly but remain high.
Moreover, if inflation continues and interest rates rise as a consequence, financing for private projects could face difficulties.
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