Texas Time

I recently spent a week traveling all over the great state of Texas. The goal was to get a sense of how the different markets are doing in the state and also to start building a plan for the legislative activities for 2011. It was a great trip, seeing a lot of old friends, visiting the Centennial teams and regional industry leaders, meeting with clients and getting a sense of the state’s activity level. I spent time with our lobbyists John and Marta Greytok of Texas Government Solutions. I was also able to stop by to say hi to Laura Fowler and as always gain a sense of energy and positive movement forward in the state.

A few thoughts jump out after this whirlwind tour:

1. Texas was the trailing indicator state on the construction industry economic issues and it is the leading indicator state on the recovery. Almost as if the economic issues that started for the country in 2008 are just a speed bump in Texas.

2. Texas is already seeing a build up of new design and engineering project requests and solicitation development (the pre-curser to construction work).

3. The mood across the state was positive and very focused on growing the economy. Everyone could see the need, the demand and the interest in public construction. Doesn’t mean there aren’t tough areas and situations, but the real sense was positive and confident.

4. The 2011 legislative calendars are being built right now and that there is going to be an effort to get legislation on the docket again to try and clean up the construction procurement laws, this includes design-build, CM at risk and job order contracting.

5. I am going to really try and help the local Texas JOC industry (owners, trade associations, educators, coops, contractors, subcontractors, consultants, etc.) work together to make sure job order contracting is not singled out and/or attacked. We need to find a way to work together to bring the right type of bill to the floor. All indicators are positive for this effort at this time.

6. Sense of growth and optimism.

One site I like to reference and track in Texas is ARRA Texas Eye On The Dollars .

All Indicators are Trending Positive

On April 27th, I attended a Design-Build Institute of America Mid Atlantic chapter meeting at Ft. Myer, VA. The 2010 Economic Outlook in the Construction Industry (with a key focus on the Washington, DC region) at The Officers' Club at Fort Myer to by Dr. Stephen Fuller of George Mason University .

The full presentation can be found here: 2010 Economic Outlook Construction.

The takeaways for me were a few simple points:

1. The top economic indicators are trending in the right direction. This is a positive thing.
2. We are not out of the woods yet – there will be ups and down in the rest of 2010 (or someone adding too many zeros to a stock sell order).
3. By 2011 the turn around will be well under way.
4. Do everything you can today to get your business in order and build up resources.

For Centennial I had the clear sense we are doing all the right things (have been since before the economic issues, during them, and still are).