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Overview

As the second largest state by size and population, Texas plays a big role in the U.S. economy, with a GDP of $2.7 trillion. Construction contributed $137 billion (5.1%) of the state’s GDP. There were 943,000 construction establishments in the U.S. in the first quarter of 2024, including 63,500 in Texas.

Major Projects and Growth Opportunities

Texas has many big projects in progress or being planned. The state is improving highways and building high-speed trains, and cities like Houston and Dallas are updating urban areas with new buildings and parks. Tech hubs are being built to support the growing tech industry, as are new hospitals and healthcare clinics to address an aging population. The finance sector has also grown in Texas, often requiring expansion of existing buildings as well as adding new banks and insurance centers.

Sustainability and Infrastructure 

Texas is working on greener solutions. To cut pollution, the state invests in wind and solar energy. It also improves water systems and adds electric car charging stations. Public transit is getting upgraded to help people move around more efficiently. 

Challenges 

Commercial construction professionals looking to operate in Texas need to be aware that the state has a budget gap, possibly meaning a reduction in program cuts for state-funded building projects. Environmental concerns, such as recent natural disasters and ongoing climate change, provide building opportunities and challenges for long-tail projects.

Future Outlook 

The future of the construction industry in Texas shows positive signs, but construction professionals should keep in mind some possible challenges that could impact the industry. The state’s overall growth is projected to continue rising but at a slower pace due to economic and climate issues. New industries like biotech and green energy bring promise to the construction industry in Texas, and policies on clean energy and innovation will shape its future. 

WPP Texas CHART_20241118.01

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Top 50 Cities in Texas

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