Memphis contractors see a continually muscular construction market, buoyed by new outside investments and interest in Memphis. But they also see it being held back by its own success.
The current construction market in Memphis is robust, and even as recession and inflation fears creep in, the biggest contractors in Memphis are not seeing any sign of a slowdown anytime soon.
“The commercial industry typically follows the residential market,” said Tim Weatherford, president of the Southeast region at Flintco. “Right now, we can see the trends in this marketplace staying strong for the next two years.”
Weatherford pointed out that demand for multifamily projects in the city remains high with potentially massive projects, such as Tom Intrator’s proposed multiblock development in the Pinch District, signaling a strong pipeline — even as large projects like Henry Turley’s Orleans Station reach fruition.
Other traditional sectors of the Memphis market remain strong, too. In addition to the multifamily market, the medical and industrial spaces also are going full steam ahead.
“Some bankers I’ve talked to say there’s still a lot of cash in the corporate coffers,” said Brett Grinder, managing principal at Grinder, Taber & Grinder. “That’s going to continue to fuel this thing for a while. I don’t know that interest rates are going to have too much effect on that.”
The continuing strong market is not without its challenges. Supply chain problems persist. The nationwide microchip shortage is starting to affect electronics needed to deliver projects. And competition over labor remains high.
Yet, the silver lining is that all of these problems have a common cause: continuing high demand.
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