News Summary
Economic uncertainty has caused a 5.6% decline in work volume for tenant improvement contractors in Orange County, with completed projects totaling $1.3 billion in 2024, down from $1.4 billion in 2023. Despite challenges in the office market, some firms have reported workforce growth, particularly in sectors like industrial real estate. However, several contractors experienced significant declines, illustrating the ongoing impact of economic instability in the region.
Orange County – Economic uncertainty in the latter part of 2024 has led to a 5.6% decline in the work volume of tenant improvement contractors in Orange County. These contractors collectively completed over $1.3 billion in projects in 2024, a decrease from $1.4 billion in the previous year. The amount of completed project space also fell by 5.5%, down to 15.6 million square feet from 16.5 million square feet in 2023.
The downturn in office improvement work is primarily attributed to a struggling office market, which has yet to fully rebound from the impacts of the COVID-19 pandemic. As businesses continue to navigate economic uncertainties, many are delaying or scaling back on tenant improvement projects.
Despite these challenges, the 29 contractors featured on this year’s list reported a 5.5% increase in their workforce, totaling 2,708 employees. This growth signals an underlying optimism for future work, even as current projects decline.
Throughout 2024, there were signs of recovery with a surge in projects during the second and third quarters, allowing some companies to hire new staff. However, by late 2024 and early 2025, many contractors experienced a marked slowdown in activity. Factors contributing to this deceleration included uncertainties surrounding elections, import tariffs imposed under the previous administration, and an overall weakened office market.
Among the contractors listed, Caliber Construction Inc. moved up to 17th place, reporting $22.8 million in work for 2024, a 12% increase compared to 2023. The firm has strategically shifted its focus toward industrial real estate projects to offset the slowdown in the office sector.
RBA Builders of Fountain Valley notably surged from 14th to 8th place on the list, completing over $56.3 million worth of projects in 2024, marking a significant 30% increase year-over-year. The company operates in diversified sectors such as aerospace, biotechnology, and healthcare, which seem somewhat insulated from broader economic turbulence.
Irvine-based RAM Construction Inc. topped the list in 2024, achieving $163 million in projects, a noteworthy 14% increase from $143 million in 2023. Other significant contractors included Howard Building Corp. in second place with $148 million and KPRS Construction Services Inc. in third place with $140.7 million.
Conversely, Swinerton Builders experienced a decline from first to fourth place, completing $103 million in projects during 2024. A total of ten contractors reported decreases in their work volume, highlighting the persistent challenges within the industry.
One example of a significant decline is Slater Builders based in Costa Mesa, which saw a staggering 55.4% decline in work, which fell from $37.8 million in 2023 to nearly $16.9 million in 2024. Similarly, VR Mason Inc. dropped from 24th to 29th place, reporting a nearly 30% decrease in work, totaling $5.3 million.
Other firms facing declines include Esplanade Builders (down 15.5%), Coastline Development (down 15.5%), Gray West Construction (down nearly 14%), DBaC Inc. (down 8.3%), and Casco Contractors (down 7.7%). These statistics illustrate the adverse impacts of ongoing economic uncertainty while highlighting the resilience and adaptability of certain sectors within the construction industry.
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Additional Resources
- Orange County Business Journal
- Orange County Register
- My News 13
- Los Angeles Times
- US News – Housing Market Forecast
- Wikipedia: Economic Uncertainty
- Google Search: California Tariffs
- Google Scholar: Economic Uncertainty 2025
- Encyclopedia Britannica: Economic Uncertainty
- Google News: Orange County Contractors Report
