Atlanta Construction Market Abuzz With Major Projects

City Grill

Michael Russell
CEO
HJ Russell & Co.

“Atlanta is buzzing with some really big projects and initiatives right now,” says Russell, pointing to the major expansion program underway by the Metropolitan Atlanta Rapid Transit Authority. The agency’s $2.7-billion More MARTA Atlanta program includes work on light rail, bus and arterial rapid transit systems as well as on new transit centers, local bus service and station upgrades.

“Having worked with MARTA for years, we’ve seen firsthand how transformative these projects can be,” he says. “This expansion isn’t just about adding more transit options, it’s about improving accessibility and driving new economic growth in the surrounding communities.”

Transit, aviation and data centers are the most active sectors in the Atlanta market now, including the transit project and airport upgrades, he says.

“With all the tech companies moving in, data centers have become a huge opportunity,” Russell adds. “The demand in these sectors isn’t slowing down anytime soon.”

One recent example is a $5-billion, 2.5-million-sq-ft data center still in the early stages of planning. It is set to include nine buildings across 317 acres to the east of Atlanta, as reported by the Atlanta Journal-Constitution on Jan. 17.

“The market feels steady from where we sit today,” Russell says, comparing the current atmosphere in Atlanta with that of recent years. “We’re seeing solid activity in infrastructure, transit and aviation, but it’s clear that clients are being more cautious about how they approach new projects.” It’s not so much about a slowdown in the market, he notes, but about clients being strategic with their investments.

HJ Russell is fortunate to be in the right markets like data centers and public infrastructure where demand is staying strong and projects are moving forward, he adds.

“Despite some challenges, Atlanta continues to be a strong market for construction,” Russell says.

There’s also a focus on affordable housing, with the city actively working on zoning reforms and public-private partnerships to increase housing stock, he notes. Energy-efficient construction is gaining steam as well, with more clients looking to construct buildings that meet sustainability goals without breaking the budget.

Russell says one of the biggest conversations in Atlanta among construction sector firms revolves around labor shortages in the industry, particularly when for skilled trades.

A report from Associated General Contractors of America released last June showed 407,000 construction job openings nationally, a total that was only set to grow, while 88% of employers report difficulty in finding workers to hire.

In surveying Georgia firms last year, AGC found they are expanding strategies to find workers, including engaging with career-building programs, adding online strategies and partnering with staffing firms. More than half are spending more money in the effort, and 66% report shortages of workers leading to project delays, according to AGC.

But among the top challenges contractors face in the Atlanta market is uncertainty, Russell says, “whether it’s economic conditions, shifting client priorities or evolving regulations, we’re constantly navigating changes that can impact how and when projects move forward.”

Firms must stay flexible and be ready to adapt as things shift, he says, adding that clients look for partners who can navigate that uncertainty to land projects on time and on budget.

Atlanta is also seeing a heightened focus on supplier diversity as corporate clients and government entities place higher expectations on contractors to prioritize diverse and inclusive partnerships, Russell adds.

“It’s also a time when collaboration across the country is more important than ever,” he says. “We’re working closely with our partners, and even competitors, to find smarter ways to build and innovate.”

As he looks to the next few years, Russell feels that successful firms will be those willing to embrace market changes, invest in emerging technology and stay focused on long-term value.

Related to his firm, Russell says he is certainly thinking about how it can stay ahead of the curve, including focusing on talent development.

“The demand for talent is being amplified by large-scale infrastructure and commercial developments, which continue to move forward despite these challenges,” he says.