Kansas and Arkansas Construction Insights and Analysis October 2024

construction projects across Kansas and Arkansas, spanning multiple sectors such as education, industrial, healthcare, and multifamily-residential. Below are key insights and trends derived from the data:

1. Project Distribution by Size:

• Extra-Large Projects: The Pinnacle Springs – Rogers, AR project stands out as an extra-large multifamily-residential project (695,000 sq. ft.), indicating significant investment in residential infrastructure in Arkansas. This aligns with trends of large-scale housing developments to meet growing demand in the region.
• Large Projects: Several large projects, such as the manufacturing facility for Marvin (400,000 sq. ft.), ColdStorage and food logistics warehouse (291,000 sq. ft.), and Fairway Active Adults senior living facility (384,460 sq. ft.), show a focus on industrial and senior living sectors. These developments highlight the demand for both industrial expansion and retirement community infrastructure, especially as the population ages and industrial activity rises.
• Medium Projects: Projects like Via Christi St. Joseph Hospital and Arkansas Tech University fall into the medium size category. These projects reflect continued investment in healthcare and education infrastructure, essential for supporting community growth and enhancing public services.
• Small to Extra-Small Projects: A notable number of projects are small, such as Cactus Grill (5,000 sq. ft.) and Chick-fil-A in Shawnee (2,700 sq. ft.). These smaller projects indicate localized development, often aimed at fulfilling community needs, such as dining establishments, smaller healthcare centers, and education facilities.

2. Sectoral Analysis:

• Multifamily-Residential: A significant portion of the large and extra-large projects are focused on multifamily-residential development. Projects like The Hudson – Apartments and Parking Garage and First Street Flats apartment complex in Rogers highlight ongoing residential expansion, reflecting rising housing demand in urban and suburban areas of Kansas and Arkansas.
• Industrial: Projects like the manufacturing facility for Marvin and ColdStorage and food logistics warehouse highlight strong growth in industrial infrastructure, particularly in logistics and manufacturing sectors. This aligns with the increasing need for advanced logistics solutions and production facilities, likely driven by e-commerce growth and regional economic expansion.
• Healthcare: Healthcare projects such as Via Christi St. Joseph Hospital and Ellinwood Hospital reflect continued investment in healthcare infrastructure, necessary to meet increasing healthcare demands. These projects are spread across small to medium sizes, indicating efforts to build both large medical centers and smaller healthcare facilities.
• Education: Several large education projects, including PCSSD Wilbur D. Mills High School and Hays High School, represent a focus on improving and expanding educational facilities. These investments aim to support growing student populations and provide better educational resources, which could be a response to population growth and regional development.

3. Geographical Distribution:

• Kansas: Many of the large-scale projects are located in Kansas, particularly in cities like Wichita, Kansas City, and Lenexa. Projects such as Fairway Active Adults and ColdStorage and food logistics warehouse showcase industrial and senior living growth in key Kansas cities. Wichita and Kansas City, in particular, are emerging as hubs for industrial and healthcare developments.
• Arkansas: Arkansas sees a mix of industrial, educational, and residential projects, with large-scale projects such as Pinnacle Springs and Anthony Timberlands Center. This reflects Arkansas’ growing demand for multifamily housing and infrastructure development in educational and industrial sectors.

4. Company Involvement:

• Major Construction Firms: Companies like JE Dunn Construction, Crossland, Nabholz Corporation, and ARCO National Construction are leading many of the projects, particularly in industrial, residential, and education sectors. These firms are well-known in the construction industry and are likely chosen for their expertise in handling large-scale and complex projects.
• Local Players: Smaller companies, such as Zernco Inc. and CAMM Construction, are handling more localized and smaller projects, such as restaurants and small healthcare facilities. This demonstrates a blend of both large-scale national construction firms and smaller, regionally-focused contractors.

5. Sector-Specific Trends:

• Multifamily-Residential Growth: The emphasis on multifamily-residential projects points to a strong demand for housing, particularly in suburban and urban areas. Projects like The Hudson, Pinnacle Springs, and the former Greyhound Park redevelopment are examples of large residential developments that indicate housing demand, particularly in growing suburban areas.
• Industrial Expansion: The presence of multiple large industrial projects, such as Elopak and ColdStorage warehouse, suggests an expanding industrial sector in Kansas and Arkansas. The growth of logistics and manufacturing facilities aligns with the region’s strategic location for supply chain and distribution networks.
• Senior Living Facilities: The Fairway Active Adults project points to a growing trend of senior living developments, reflecting demographic shifts as the population ages. This trend could continue as the demand for retirement and assisted living communities grows.

Conclusion:

The dataset highlights strong growth in the multifamily-residential, industrial, healthcare, and education sectors across Kansas and Arkansas. Large-scale investments in industrial and residential infrastructure suggest that these regions are preparing for continued population and economic growth. Companies involved in these projects reflect a mix of both national and local expertise, indicating that the development is being driven by a combination of large firms handling significant projects and smaller firms addressing local community needs. This broad spectrum of development shows a balanced growth trajectory for these states.