Texas Manufacturing Is Booming; In Construction It's Data Centers
The Federal Reserve Bank of Dallas' latest Manufacturing Outlook Survey indicates a booming manufacturing sector in Texas, with new orders and hiring significantly up. Within the commercial construction business, data centers are a major growth area, particularly in the Dallas-Fort Worth region. This contrasts with a general slowdown in other commercial builds due to lower occupancy rates.
The manufacturing sector in Texas is experiencing a boom, according to the Federal Reserve Bank of Dallas' Manufacturing Outlook Survey for September. The survey reported a near-doubling in new orders and hiring, with some companies indicating more orders than they can fulfill.
However, the commercial building sector shows more measured enthusiasm, with lower occupancy rates dampening new construction in some areas. A significant exception to this trend is the data center industry, particularly in the Dallas-Fort Worth area, which is described as a "hot spot" for construction.
Lance Thrailkill, CEO of A-Metals Company, characterized it as a "tale of two worlds," where commercial builders involved in data center projects are thriving, while others may be experiencing a decline of about 30 percent. Despite this disparity, Thrailkill noted that the overall Texas economy continues to perform well, suggesting a positive outlook for the upcoming sales season.