Meeting_Body
REVISED
CONSTRUCTION COMMITTEE
MARCH 21, 2024
Subject
SUBJECT: 2023 CONSTRUCTION MARKET ANALYSIS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
A. RECEIVE AND FILE status report on the 2023 Construction Market Analysis.
B. MOTION by Director Krekorian that the Board direct the Chief Executive Officer to implement the goals contained in the Construction Market Analysis and to report back quarterly on how to make achieving the goals more successful as well as adopting meaningful measures to facilitate and expand certification of SBEs/DBEs and increase utilization by general contractors to achieve goals.
Issue
ISSUE
The construction market in the Southern California region continues to grow rapidly. Metro alone has a $26.8 billion capital program currently underway, with additional projects in the pipeline. Other major construction programs in the region by Metrolink, Los Angeles World Airports (LAWA), Caltrans, the City of Los Angeles, Los Angeles County, and numerous private sector initiatives are also straining the regional construction market.
A construction market analysis was performed to understand better the factors influencing construction bid prices and Metro's ability to deliver the largest transportation construction program in the country. The report (Attachment A) describes the state of the construction market nationwide, regionally, and locally with insights directly from contractors. In addition, the report discusses the factors that affect Metro's ability to deliver its capital program, including perceptions of Metro as an owner, fluctuating material prices, and a lean labor supply.
Background
BACKGROUND
Every two years, Metro prepares a construction market analysis to assess current economic conditions and the state of the construction industry. The 2023 Construction Market Analysis provides a view of the construction industry and how it may affect Metro's transit and capital program. It looks at m...
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