Teledata Technologies

Nevada Boom

In 2009, media outlets confidently declared that the Great Recession destroyed the American dream in our nation’s silver state.  Headlines graced front pages with descriptions of vast foreclosures, plummeting employment rates, and stalled construction.  Tourism and gaming took significant losses, tightening budgets throughout Las Vegas.  As the years passed, gradually and fortunately, Nevada overcame the Great Recession and the economic growth continues to progress. 

The shift in economic conditions is creating a boom in the overall construction industry.  New buldings are popping up daily.  Increased technology usage has created a push for a sound infrastructure to be built and most every where you look, people are busy.    Statistics have shown significant improvements in Nevada’s economic forecast.  Since 2010, the unemployment rate dropped from 13.7 percent to 4.7 percent.  The average private weekly wage for Nevada workers increased 2.3 percent year-over-year.  Construction employment as of October 2016 was up 13 percent, making construction Nevada’s fastest growing sector.  Nevada’s Gross Domestic Product (GDP) has shown significant and continual growth, according to the University of Nevada, Las Vegas (UNLV) Center for Business and Economic Research. These statistics are clear indicators that Nevada is on a path toward a healthy, stable and growing economy. 

Employment is projected to rise as Southern and Northern Nevada take on an increasing number of construction projects in trade/transportation/utilities, business services, healthcare, and leisure/hospitality.  The healthcare sector in particular, was the least effected by the recession. Health services continue to grow with four Dignity Health hospitals, UNLV School of Medicine, and Southern Hills Hospital’s family medicine residency program under works.  Some of the most anticipated developments apart from healthcare include: Tesla Motor Co, Resorts World, Switch, Hyperloop, and Las Vegas Convention Center District.  As more and more businesses establish their bases in the silver state, it is no surprise that construction is its most progressing sector.  The wave of projects, developments and businesses will boost employment opportunities and real estate growth. 

Real Estate

No other state’s real estate market was as negatively impacted by the recession as Nevada.  Nevada’s foreclosure rate was the highest in the country, peaking around 10 percent in 2009.  Despite the crash, Southern Nevada’s housing market has made a steady recovery supported by seven consecutive years of rising housing prices.  As of July 2017, Nevada’s foreclosure filling’s are at 1 in every 1,095, as compared to 1 in 10 of 2009.  Home prices are becoming increasingly affordable in Northern and Southern Nevada.  As of October 2016, the median price of a Reno-Sparks home was $306,000 compared to $233,250 in the Las Vegas Valley.  Nevada’s housing market continues to progress, giving potential residents a rewarding future in a growing number of industries

Beyond Hospitality

 

             2016 brought in a staggering 42.9 million visitors to the Las Vegas Strip.  The rise in tourism (from 39.1 million in 2007) can be attributed to the vast number of new developments and renovations such as The Linq, TMobile Arena, and The Park. According to Nevada’s Gaming Control Board, gaming isn’t the strip’s sales driving force it once was.  The slight decline in gaming hasn’t affected the 35.5 billion dollars in tourist revenue in 2016. These numbers show that Las Vegas is attracting people of diverse interests apart from just gaming.   While tourism and hospitality remain Nevada’s bread and butter, industries such as marijuana, technology, and construction are diversifying its economy.

           

Marijuana                      

            In the first four days of legal recreational marijuana, Nevada brought in $3 million dollars in sales, according to the Nevada Dispensary Association.  These numbers translate to $750,000 per day and $125,000 in state taxes.  The sales are projected to grow if Nevada models the successful structures of Colorado and Oregon.  If marijuana continues to trend, Nevada is expected to generate $500 million dollars in sales over the next two years with $110 million dollars in tax revenue.  3,298 full-time jobs are expected to come out of the crop by 2020.

 

     Technology     

In Northern Nevada, the economy is shifting from a tourism centered industry to technology.  Northern Nevada is on its way toward a technology powerhouse with the Tesla Gigafactory, which is expected to create 500,000 electric vehicles by 2020.  In addition to Tesla, Apple just recently announced its plans to for a $1 billion dollar expansion in Reno.  This new expansion will house the company’s data center.  The up and coming data centers will establish Nevada residency alongside Switch, a global technology solutions corporation. Switch currently has five data center locations, with two of which located in Reno and Las Vegas.  Nevada’s climate makes for the perfect home for data centers, considering its lack of natural disasters and moderate temperature.  Climate, low energy costs and a solid employment base make Nevada geographically perfect for technology. 

               

Nevada’s economy is diversifying as it continues to grow beyond its roots of hospitality and gaming.  The number of visitors and revenue Nevada brings in are clear indicators that people take interest in coming for reasons beyond slot machines and hotels.  Technology, cash crops and healthcare are just some among many industries strengthening the silver state’s economy.  Clean energy, aerospace and information technology are also expected to make a significant economical mark in the near future.  Although construction was nearly dead during the recession, it is currently Nevada’s fastest growing sector and is expected to have the largest employment gains among the other industries.  Soon, visitors and residents will be able to view exciting future developments such as: Resorts World, Project Neon, Switch, Hyperloop to name a few.   Since the Great Recession, Nevada has managed to reshape its economy with the backing of more and more industries.  Its expansion of various industries offer economic security and support a bright future for the shining silver state. 

 

 

 

construction, low voltage, nevada economy

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