It’s that time of year again. At the end of the year, we review what happened and think about what’s next. Metro Interior Distributors continually watches the news to assess the state of construction and development in New York and Long Island. Here’s our pick for four trends New Yorkers should look for in 2023.
1. More Warehouses on Long Island and in Every Borough
Nearly one in eight jobs in New Jersey are in the wholesale trade, transportation, and warehousing sector, but that doesn’t mean they want to become the warehouse for New York City. That’s why New Jersey created recommended guidelines for warehouse construction. Early feedback suggests few townships will follow these guidelines, but New Jersey is becoming less friendly to new warehouse construction.
Meanwhile, warehouses are hot in New York City. Big online merchants have facilities throughout Queens, Brooklyn, and The Bronx, including the kind of multistory centers previously confined to Asian metropolises.
Now there’s a shortage of warehouse space; only 1.6 percent of all warehouses in New York City are available for lease. And even fewer are available in New Jersey. This points to a new type of building boom that may continue for years.
2. Continued Healthcare Construction
Healthcare construction is nearing all-time highs, according to Construction Dive, which reported, “Proposal activity in the healthcare market was the second-highest of the 12 major sectors in the second quarter of 2022.”
The effects of the healthcare boom can be seen throughout the five boroughs and on Long Island. Major projects include the Charles B. Wang Community Health Center in Queens, the Catholic Health Services of Long Island’s $500 million Good Samaritan upgrade in West Islip and Precisioncare Surgery Center in Setauket, the expansion of the Ronald O. Perelman Center for Emergency Services in Manhattan, and the $1.5 billion Nassau Hub project.
And while the first flush of post-pandemic healthcare projects is wrapping up, megatrends such as an aging population, increased healthcare quality, and health system mergers point to an ongoing boom for healthcare facilities in the New York City region for years to come.
3. Expansion of Medical Research Facilities
New York is constantly reinventing itself. It’s the center of many industries, and it’s becoming a hotspot for medical research. Recently, announcements for the Science Park and Research Campus (SPARC) Kips Bay and the New York City Public Health Laboratory confirmed suspicions that the New York metro region wants to play a more significant part in research.
A recent report shows that the NYC metro is now the leader for life sciences jobs and funding, with billions committed to expanding research in the field. That means we’ll continue to see announcements for significant building and renovation projects associated with health and pharmaceutical research.
4. Labor Bottlenecks Hamper Development
While the plans for big development projects continue, the reality of the labor market and overbooked construction firms may slow progress. The building boom has created pent-up demand which translates into higher estimates and longer timelines. Increased demand combined with fewer construction workers is frustrating many developers and contractors.
In addition to the backlog, new rules for city construction sites could exacerbate the labor shortage, resulting in slower progress.
We predict more competition for big jobs and less competition for smaller or potentially less profitable jobs. These firms will try to assign resources in ways that help fortify their long-term margins.
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2023 will be a busy year for the construction industry, and we’re here to help. We carry a wide range of commercial building materials and work hard to keep all items in stock and available to regional contractors and developers. Since 1984, we’ve delivered building materials on time, exactly as requested. We make your job easier by providing the best products available, meeting your needs, and working with your schedule. Contact us today to learn more about how we can support your next project.