The Southwest region has seen significant growth in the past few years, but an overall market slowdown is coming.

Data centers helped fuel contractor revenue growth in 2023, with Southwest firms collectively reporting a 13% overall gain.

Energy, industrial and infrastructure sectors again boosted Southwest design work, but how long can it continue?

Despite recession fears and high interest rates as well as supply chain delays and continuing labor shortages, specialty contractors in the Southwest are applauding last year’s productivity levels and anticipating a continued burst of activity through 2023.

A familiar scenario is playing out as firms participating in ENR Southwest’s annual Top Contractors survey for Arizona, Nevada and New Mexico are reporting strong performance and backlogs, while at the same time, noting that qualified labor remains a top issue as well as materials availability and prices.

As ENR Southwest’s recently published annual Top Starts ranking showed, 2022 proved to be an especially strong year for construction firms working in the states of Arizona, Nevada and New Mexico.