News Summary
Orange County’s tenant improvement contractors have faced a 5.6% decrease in workload in 2024 compared to the previous year, largely due to economic uncertainties and the recovering office market post-COVID-19. Despite a drop in completed projects, employment among contractors has risen by 5.5%. Experts point to tariffs and unfavorable market conditions as contributing factors, while some companies are pivoting towards industrial real estate projects. Despite the challenges, there are signs of optimism with a surge in project initiation observed during mid-2024.
Orange County Contractors Face Decline in Office Market Work
Orange County’s tenant improvement contractors have reported a 5.6% loss in work in 2024 compared to 2023, as economic uncertainty and a recovering office market post-COVID-19 create challenges in the industry. The 29 contractors on the list collectively completed more than $1.3 billion in work during the year, down from $1.4 billion in 2023.
In terms of project space, the companies completed 15.6 million square feet of projects in 2024, marking a 5.5% decline from the 16.5 million square feet completed in the previous year. Despite the downturn in work available, the employee count among these contractors rose by 5.5%, resulting in a total of 2,708 Orange County-based workers.
Economic Challenges Impacting Contractors
Industry experts attribute the decline in work to several factors, including tariffs, lingering economic uncertainties, and a difficult office market. The final months of 2024 along with early 2025 are being seen as particularly challenging for tenant improvement projects.
However, there was a notable surge in projects initiated during the second and third quarters of 2024, providing a glimmer of optimism for the coming months. In response to the sluggish office market, some companies, such as Caliber Construction, have shifted their focus toward industrial real estate projects.
Top Contractors and Performance Highlights
Among the contractors, RAM Construction Inc., based in Irvine, topped the list with $163 million of work completed in 2024, reflecting a 14% increase from the previous year. Following closely, Howard Building Corp. secured second place with $148 million in work, while KPRS Construction Services Inc. took third place with $140.7 million.
Other noteworthy performances include Caliber Construction, which moved from 18th to 17th position with $22.8 million in work—this marked an increase of 12% from 2023. Meanwhile, RBA Builders climbed from 14th to 8th position, reporting a 30% increase to $56.3 million in 2024.
Declining Performance Among Several Contractors
While some contractors experienced performance growth, ten of the 29 reported declines in work for 2024. Notably, Slater Builders from Costa Mesa faced a significant drop of 55.4% to nearly $16.9 million. Additionally, VR Mason Inc. fell from 24th to 29th place, recording a 30% decrease to $5.3 million in completed work.
Other contractors that faced declines include Esplanade Builders Inc. (down 15.5%), Coastline Development Inc. (down 15.5%), and Gray West Construction (down nearly 14%).
Outlook for the Industry
Contractors cite tariff uncertainties and a lack of favorable deals available in the office market as key reasons behind the downturn. Despite these challenges, the overall outlook for the industry remains cautiously optimistic, with contractors looking forward to a potential resurgence in project activity in the upcoming months.
This situation reflects a broader trend in the construction and contracting industry, influenced by ongoing economic changes and the evolving needs of businesses adapting to a post-pandemic environment.
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Additional Resources
- Orange County Business Journal: Contractors Report 5.6% Decline
- Wikipedia: Economic Uncertainty
- Orange County Register: California Tariff Experts Warn
- Google Search: Tariffs
- My News 13: Tariffs Raise Concerns
- Encyclopedia Britannica: Tariffs
- Indy Week: Orange County Budget Falls Short
- Google News: Economic Uncertainty
- Los Angeles Times: They Love Trump but Worry About Tariffs
- Google Scholar: Uncertainty in Construction Industry
- US News: Los Angeles/Orange County Housing Market Forecast
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
