With its broad exposure to markets in more than 20 states, NAED’s Western Region is home to many of the nation’s fastest-growing metropolitan areas. When you measure the growth of individual Metropolitan Statistical Areas (MSAs) with economic indicators like electrical contractor and industrial employment growth, building permits, population growth and the number of large commercial, public, institutional projects, many of the region’s MSAs usually rank near the top of most lists.
This year is no different. As you can see on the chart on the next page, NAED’s Western region has more than 50 metros that generate an estimated $100 million or more in Electrical Marketing’s Core Electrical Sales Potential (the combined total of electrical contractor and industrial sales that typically accounts for 75% of all sales through electrical distributors). And when you drill down into that list a little further, you see that 15 MSAs are enjoying increases in electrical contractor employment at twice the national year-over-year rate of +4.1% and 11 market areas have increases in industrial employment at twice the +2.3% national average through Nov. 2018. Enjoying double-digit increases in electrical contractor employment are Midland, TX (+19.5%); Phoenix (+13.8%); Omaha-Council Bluffs, NE-IA (+12%); Houston (+12%); Stockton-Lodi, CA (+11.6%); Las Vegas (+11.2%) and Reno, NV (+10.5%); Portland, OR (+10.1%) and Greeley, CO (+10%). Worth noting are the spectacular YOY increases in the Phoenix-Mesa-Scottsdale MSA (+2,202 estimated new electrical contractor employees), and the Houston-The Woodlands-Sugarland MSA (3,415 new employees).
The region’s impressive amount of activity in single-family building permits provides some insight into its growth and attraction for new home buyers. Through October, the region was home to 25 of the nation’s 50 largest MSAs in single-family permits. Amongst the 10 MSAs in the nation with the most building single-family permits year-to-date through 3Q 2018 were Houston (34,793); Dallas (31,509); Phoenix (19,676); Austin (14,541); and Denver (10,338).
Population growth is another good indicator of a market’s economic health, and several metros are among the nation’s leaders when measured by 2012-2017 growth. The Austin-Round Rock MSA has had a 15% population increase over the past five years, adding 281,261 new residents, according to data from the U.S. Census Bureau. When measured by percent increase over this period, the other metros at the top of the list include Bend-Redmond, OR (+16%, +25,532 residents); Greeley, CO (+15%, +40,879 residents); St. George, UT (+15%, +21,446); and Provo-Orem, UT (+12%, 67,604 residents).
The region is also loaded with high-profile construction projects. Texas’ Gulf Coast petrochemical projects have attracted lots of attention, and the amount of commercial development in the Dallas metropolitan area is impressive. Downtown redevelopment projects are underway in San Diego, San Francisco and Seattle, and many cities in the region have airport projects underway or on the drawing boards. Billion-dollar NFL stadiums are under construction in Las Vegas and Los Angeles. There’s also at least 12 data centers now under construction and light rail projects underway or planned in Los Angeles, Minneapolis and Seattle.