Do you ever think about how commercial construction impacts your community’s economy? The construction and renovation of business buildings (office, retail, or warehouse buildings) is referred to as commercial construction. Constructing such buildings is crucial in becoming the backbone of the economy for a region.
The construction industry is very important to the U.S. economy, as it employs about 8 million people and spends around 2.1 trillion dollars a year on buildings. Such a big investment does not only create new jobs but also new opportunities in other sectors, which is why commercial construction is so important for local economic growth.
Job Creation and Employment Opportunities
Commercial construction is an essential source of employment as it employs people at every level. With every project, the industry creates both new and supporting jobs and further enhances the economic standing of the region.
Direct Employment: Jobs in the Construction Phase
A skilled workforce, both trained and non-trained, is required to complete projects during the construction phase. Some of the primary positions are as follows:
- Construction Workers & Laborers – Carry out tasks like land clearing, construction work, and roofing.
- Engineers & Architects – Create and draft construction details and implement them, ensuring all safety and efficiency checks.
- Project Managers & Supervisors – Manage the execution of the project by monitoring all timelines, budget plans, and the personnel employed.
- Electricians, Plumbers & HVAC Technicians – Set up important systems and furnishings in offices and commercial structures.
Indirect Employment: Jobs in Supporting Industries
Apart from construction sites, commercial projects create the following jobs:
- Material Suppliers and Manufacturers – Such vendors provide and supply building material items like glass, concrete, steel, etc.
- Logistics and Transportation – These companies deal with the transportation of construction tools and materials.
- Equipment Rental and Maintenance – Construction tools and machinery are available on rent for operations on construction sites.
- Legal and Financial – These professionals provide funding for the construction project and offer legal documentation and support, including contracts.
Long-Term Employment: Jobs Created by New Businesses
After the construction of a commercial building is finished, it opens up new businesses, which will lead to new job opportunities. Some of them are as follows:
- Hospitality and Retail Jobs – Restaurants, stores, and hotels need employees to run their businesses daily.
- Office and Administrative Positions – Companies hire workers for finance, marketing, and management services.
- Security and Maintenance Workers – Take care of the commercial building and ensure its safety.
The impact of employment due to commercial construction does not end there. It continues to impact the economy for years to come.
Boost to Local Businesses
Construction is more than just creating structures; it helps local businesses by increasing the need for products and services. Because of construction projects, a variety of businesses, ranging from suppliers to service providers, are able to reap the benefits, which eventually leads to positive economic growth.
Increased Demand for Local Suppliers
Each business project has strict requirements in regard to getting a consistent freshly made supply of materials and equipment, which greatly benefits local firms such as:
Construction Material Suppliers
Local concrete, steel, glass, and wood suppliers, and other local businesses are flooded with new orders.
Equipment Rental Companies
There is a surge in sales with the renting out of scaffolds, tools, and heavy machinery.
Landscaping & Interior Decor Firms
There is not only heightened demand for furnishing and flooring interiors but there is also a renewed interest in outdoor beautification.
Revenue Growth for Nearby Businesses
When a construction project starts, it needs a lot of workers, meaning other businesses like:
Cafes and Restaurants
The on-site help, as well as the supervisors and engineers, tend to eat at local restaurants, thus increasing their earnings.
Shops and Supply Stores
The construction teams also tend to go to the local hardware supply shops, uniform shops and even to the general supply stores.
Hotels & Lodging Services
People who are coming from different areas as contractors or even as project managers need to stay at hotels, leading to an increase in the service provided by the hospitality industry.
Transport & Fuel Stations
There is naturally an increase in the demand for transportation services and fuel due to construction vehicles, staff, and equipment.
Infrastructure Development and Community Revitalization
Buildings are not the only things commercial construction projects build; they enhance local infrastructure in addition to revitalizing neglected regions. These advancements provide greater value over time, improving the overall quality of life for the community and the business.
Upgrading Roads, Utilities, and Public Services
Big commercial projects usually need huge investments in infrastructure with higher activity levels. In addition to new commercial centers, new roads are built, existing highways are widened, and traffic systems are modernized to cope with higher vehicle flows. Construction projects also improve utility systems like electricity, water supply, and drainage, so the newly developed area can sustain further business activities.
Due to commercial expansion, public services like response emergency services, healthcare, and waste management are also enhanced. The new urban activity will greatly increase the demand for an efficient overarching urban framework. Therefore, investment in these fundamental services not only helps new businesses but is advantageous for the already existing residents.
Revitalizing Neglected or Underdeveloped Areas
A lot of commercial construction projects are planning new buildings in previously neglected areas, turning them into bustling centers of commerce. An old industrial area can turn into a business office park, while a run-down shopping area can be turned into a fully functional residential and commercial area. New businesses, jobs and improvement of the value of properties lead to the community becoming more attractive.
Commercial construction is important in replacing old buildings that are falling apart and adding new, more efficient, and modernized structures, which in turn reduces urban decay. Because of these changes, the crime rate goes down and public areas become much safer. Once the public begins to see changes, it encourages further improvements, which benefits the community greatly.
Transforming Communities Through Commercial Construction
The construction of Utah’s I-15 Technology Corridor is an example of how commercial construction can impact the local community. At one point, this area was heavily impacted by traffic problems as cities grew. The Utah Department of Transportation (UDOT) started a significant infrastructure campaign to widen I-15 to six lanes in both directions from S.R. 92 to Lehi’s Main Street. This included major interchange reconstruction, a new Triumph Boulevard bridge, and the implementation of a one-way high-way frontage road. These developments improved the region’s attractiveness to businesses and residents, which increased the area’s overall connectivity.
Increase in Property Values and Tax Revenues
Commercial construction leads to increased tax revenue and property value, both of which help local communities. New business centers, office buildings, and commercial hubs, alongside other construction projects, increase the appeal for investment, which results in the appreciation of land and property value. This is a positive sign for homeowners, local governments, and business owners, thus making commercial development the backbone of economic growth.
How Commercial Projects Boost Property Values
When new business developments are brought to an area, the area becomes more attractive, increasing the need for properties. New businesses are willing to pay more for the best locations, which increases competition for real estate. There has also been an increase in property prices because of better roads, public areas, and transportation services. Such infrastructure development leaves an area with newer, better properties.
In Utah, the previously less developed areas within downtown Salt Lake City have turned into profitable real estate markets as once underdeveloped regions have greatly appreciated due to the arrival of commercial spaces.
Tax Revenue Growth and Public Services
Rising property values mean higher property taxes, which local governments can use to fund necessary public functions. These funds are spent on education, public healthcare services, and even the maintenance of roads, which improves the living standards of residents. With more people and businesses being attracted to commercial centers, there is also an increase in revenue from sales tax. In Utah, local tax collections have significantly increased due to the growth of commercial developments in other cities like Provo and Lehi, which allows for further investments in infrastructure and community programs.
Utah’s Growth in Tax Revenue from Commercial Development
The tax revenue has steadily increased in Utah because of new commercial projects. Development in Utah has brought in more taxes, and the Utah State Tax Commission reported $16 billion in revenue for FY 2024. This revenue marks a change in income and is slightly lower than the previous year by 0.2%. This is attributable to a decreased individual income tax and corporate income tax, which declined by 3.4 and 1.6 percent, respectively, after being reduced from 4.65 to 4.55 percent in 2024.
Commercial construction is also important for the locals because it’s a major source of long-term economic development. The increase in commercial construction leads to higher values of properties and revenue from taxes, making the cities across Utah healthier and more sustainable.
Challenges and Considerations
Commercial construction can be great for the economy, but it also has issues that impact local residents. Displacement, gentrification, environmental protection, and sustainability are issues that can’t be overlooked.
Displacement and Gentrification
With the increase in commercial projects comes the inflating of property values. Because of this, many long-term residents, along with small businesses, may grapple with higher costs. Gentrification drives out lower-income communities, which is detrimental to the social and economic structure in a region. In order to reduce these impacts:
- Developers should designate some areas for affordable housing or low-cost business establishments.
- City town planners need to apply zoning laws that safeguard certain regions.
- Offer tax rebates to local small businesses so they can stay in the developed zones.
Environmental and Sustainability Issues
Buildings for businesses use a lot of resources that cause pollution. The most important issues to worry about are:
- Emissions of carbon during construction work.
- Waste is created by the destruction of buildings and materials.
- The reduction of green areas is because of city growth.
Developing approaches to construction can reduce the negative effects:
- Sustainable materials such as recycled steel or glass are not energy-consuming.
- Using green building certificates such as LEED.
- Using solar panels in new buildings.
Mitigating Negative Effects
For developers and governments to enable all stakeholders to benefit from commercial projects, developers and governments should:
- Carry out studies on social and environmental impacts prior to commencing a project.
- Involve local communities in the implementation of their policies.
- Encourage the integration of residential and green areas in areas planned for commercial buildings.
A healthy community construction development balance is critical to the social and economic growth of the community.
The Role of Commercial Contractors in Ut
Commercial construction in Utah is a key factor in the state’s economic growth. Cities like Salt Lake City, Provo, and Lehi are growing rapidly and need office buildings, shopping centers, and industry centers. All of this has created a skilled market for construction services, and these skilled contractors are transforming the city.
Leading Commercial Contractors in Utah
Tushar Contracting is one of the best commercial contractors you will find in Utah. Their reputation is built on their guaranteed quality, specific ingenuity, and meeting deadlines during project completion. The firm is proficient in a variety of commercial undertakings, which include, but are not limited to, office space construction, retail shopping center buildings, and industrial facility development.
Notable Projects and Economic Impact
Utah is undergoing an economic change due to significant works like developing Silicon Slopes and the expansion of the Salt Lake City International Airport. These endeavors have attracted new national investments while increasing local business activity and employment, further establishing the state as a commercial growth center.
Final Words
Commercial construction is one of the best ways an economy grows because it creates new jobs, which helps local businesses, and new construction adds more value for properties. Even though some issues like relocation and damage to the environment do exist, sustainable development helps mitigate them. In Utah, commercial contractors building and managing projects are vital to the growth of the populated communities, and commercial construction is important for the continuous growth of the economy.
If you need a commercial contractor in Utah, look no further! Tushar Contracting offers exceptional construction services that are built to last and center around your business demands. We guarantee high quality, from the creation of offices to the development of larger structures. Contact us today and let Tushar Contracting help you build your next project