Commercial Construction Boom Continues Amidst Residential Construction Stumble

United Seattle • March 15, 2023
A construction worker is working on a metal structure

With recession looming overhead, the residential contractors' brace for the worst time, whereas commercial construction booms in the same environment. Chief Economist for the Associated Builders and Contractors said that “Rising interest rates have already driven the single-family homebuilding market into recession, but brisk nonresidential activity continues," highlighting the talk of the town on the same lines.

 

However, this sentiment is hard to put down in tangible form (or in numerical data) due to price inflation, product availability and higher skilled labor cost across the country. Until more data is available, outlooks for each industry are less than crystal-clear. However, recent data shows that the cost of material, labor and land has also increased. This has directly declined the residential construction industry, whereas the impact is not that big on the commercial construction industry, as reported by CNBC.

 

Commercial construction continues to rise despite residential construction faltering

 

The Associated Builders and Contractors (ABC)’s Construction Backlog Indicator shows a sustainable number of projects in the future, depicting that the industry might have sidestepped a bump in the road. The number has doubled from 8.7 months last year.

 

Another factor in this industry-wise divide is the infrastructure bill which favors industrial construction and contractors. The $1 trillion bipartisan plan is set to distribute funds for projects across many sectors: roads and bridges, public transit, water and wastewater, passenger and freight rail, and airports. Moreover, the negative outlook in the housing market also creates an illusion of a wider gap than there is between the residential and commercial construction industries.

 

Ken Simonson, Chief Economist for the Associated General Contractors of America, references two indexes. The first one is the Architecture Billing Index, which indicates spending on new, nonresidential buildings will be increasing. In contrast, the second index is the Dodge Momentum Index, which means growth for both commercial and institutional projects. As per Ken, the ABI is a favorable indicator for continued growth in nonresidential building construction. Even with favorable bills and positive index indicators, many economists speculate that the execution of said plans may be complex. The various reasons include the slow trickle-down of Federal money, lack of skilled labor (due to the construction boom) and crossing of similar projects in the same locality.

 

Furthermore, the global challenges also add up to the US construction industry woes. The war in Ukraine has disrupted the supply chain of natural gas and oil, and the material supply chain has yet to completely stabilize since the effects of the COVID-19 pandemic. With several factors affecting the construction industry, it might be impossible to predict future trends irrespective of your economic and construction industry knowledge. Ken remains optimistic when he says, "I don't think that we're in a recession, and I think that we’ll escape without a recession.” Although, if you are a contractor or a homeowner looking for expertise from a local subcontractor amidst the shortage of skilled manpower, United Seattle is your go-to place.

USL2 Single-Source vs. Multi-Sub Bidding: Cost and Schedule Impact for GCs

By Victor K • September 22, 2026
General contractors or GC often look out for a complete package in their commercial subcontractor Seattle. The enormous task of combining multiple commercial construction subcontractor Seattle for a single project is a recipe for disaster and all GCs know this well. However, when it comes to selecting that one, the cost bid must not be the only criterion. The lowest bid might not have the overall expertise that is required for the project. GCs can bundle all the tasks and award them to one construction management subcontractor. However, the cost comparison between a single commercial subcontractor Seattle or multiple ones is not linear as lower coordination costs, fewer scope gaps, and better schedule control must also be taken into account. Total Installed Cost Vs. Trade Pricing In simple mathematical terms, the total project cost is just the amount the commercial subcontractor Seattle charges the GC. However, factors like Trade bid price, coordination cost, schedule exposure and change-order exposure must also be taken into account while pricing for a singular or multiple construction management subcontractors. The GC can simply request a quote for each task, generate competition and get the lower cost. However, the factors listed account for additional cost in this scenario as the GC needs to coordinate multiple contracts, schedules, site mobilizations, foremen, RFIs, submittals, invoices, inspections, and handoffs. A single-source commercial subcontractor Seattle like United Seattle may cost more than a competitive breakdown of subtasks but the additional factors are eliminated and long-term cost and time savings are achieved. Schedule Float Vs. Small Bid Difference Multiple tasks have multiple timelines which are often linear rather than parallel. This means that one commercial construction subcontractor Seattle needs to wait for the other one to complete their task before starting. An ideal example of this is flooring and drywall installation. One cannot be done before the first task is completed. A delay in the earlier task can lead to delays, extra cost and rising disputes, all of which have a price tag that the GC has to pay. Therefore, calculations are to be carried out before using multiple contractors rather than one. For example, if a bundled subcontractor costs $30,000 more than the combined lowest trade bids but gives the project team additional schedule flexibility and reduces the likelihood of a costly sequencing delay, that $30,000 should not be evaluated in isolation.

How to Vet a Commercial Subcontractor Seattle Before You Sign

By Victor K • September 14, 2026
Learn how to vet a commercial subcontractor before signing. Check licensing, bonding, insurance, safety, capacity, references, and project management.

Why General Contractors Are Consolidating Trades Under One Subcontractor

By Victor K • August 25, 2026
Managing a construction project is not just about outsourcing all the tasks; it involves much more than meets the eye. It is about being on the project from start to end and checking that all timelines are being followed by every commercial subcontractor Seattle. Scheduling and adhering to timelines are among the most challenging tasks, as it can result in loss of time and resources. The ideal method for a general contractor is to select a commercial construction subcontractor Seattle that provides all the required services. The result can be a more coordinated workflow, clearer accountability, and fewer opportunities for one trade to disrupt another.= The Challenge of Managing Multiple Trade Subcontractors Generally, a major construction job consists of multiple facets, resulting in the hiring of multiple commercial subcontractors in Seattle. These tasks include siding , roofing, flooring , interior design and paint jobs . Different construction management subcontractors bring different flavors to the table and managing them takes special skills on the part of the general contractor. These various companies also bring their own timelines which can result in slowing down the project as most of these tasks need to be completed in a series manner rather than in parallel. The main challenge is not the number of commercial subcontractor Seattle involved in the project but handling their cohesiveness. Every additional handoff creates another opportunity for something to fall through the cracks.
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