Arizona Construction Activity Might Hit $11.5B This Year








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Posted by Rachel on Apr 29th, 2014 // No Comment

By Eric Jay Toll for Arizona Builder’s Exchange

Arizona is looking down the road to more than $11.5B in taxable construction sales for the current fiscal year—the best number since 2008. Data for the last four months of 2013 are in, which means that the state has booked half the fiscal year’s transaction privilege tax collections. The numbers so far in 2013-14 are substantial increases over 2011-12 and 2012-13.

Sales were up 10.7 percent in December and 19.7 percent in October over the prior year. Last summer (July through September, fiscal 1st quarter) contractor sales were reportedly up 16.4 percent over 2012-13 and the fall (October through December, fiscal 2nd quarter) was up 13.8 percent.

Contractors generated sales of $5.9B in the first six months of fiscal 2013-14, which projects to an $11.5B year. National construction sales are trending to top $1T for the first time since 2008. Month-to-Month, sales activity is up and down. When compared to growth over last year, every month has had double-digit increases.

The sales data round off, essentially, to $1B per month in Arizona. The fiscal year kicked off with a pair of $1B months, then in September, monthly revenues dropped to just below $1B, where they have held since then. December, the last month reported thus far, was the slowest month for sales, $927M. As of the end of December, however, Arizona contractors are on the road to a 14 percent increase this fiscal year over last.

There’s a little caution in the numbers, as the actual month-to-month sales data are trending downward from $1,016M in July to the $927M in December. Each month has been slightly lower than the last. The impressive numbers are the comparison with prior year sales.





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I am a successful Commercial Investment Real Estate Broker in Arizona now for 20 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial landspecialist in Phoenix and a Landspecialist in Arizona.





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