Key Recent Developments & Trends
Industrial Land Expansion in Visalia
The city of Visalia is actively planning to open up more land for industrial / commercial development.
- The Visalia City Council voted to move forward toward expanding industrial park zoning, especially south of Highway 198 near the airport, and west of Highway 99 around the wastewater treatment plant. centralcalifornia.org
- The proposal includes introducing a “reserve” industrial area of about 405 acres that could be brought online when demand warrants. centralcalifornia.org
- Currently, vacant industrial land is scarce—Visalia has ~3,543 acres of industrial parcels but only ~945 acres still vacant in its sphere of influence. centralcalifornia.org
- Interestingly, industrial building activity has slowed: in 2024, only ~330,000 ft² was added—much lower than previous years. centralcalifornia.org
Implication: This suggests a push by local governments to bolster industrial capacity in anticipation of demand. In times of economic slack, industrial development becomes a tool (or “overdraft”) to stimulate growth.
Construction Industry Trends & Challenges in CA (2025 Outlook)
Several reports highlight stresspoints and shifts in California’s construction sector:
- Private development is slowing. Due to high interest rates, rising costs, and economic headwinds, commercial and residential new developments are being delayed or downsized. Construction Owners+1
- Public / infrastructure work remains more stable. Many public construction projects (schools, highways, utilities) continue, buoyed by policy incentives and government spending. Construction Owners+1
- Labor & skill gaps are growing. A shortage of skilled tradespeople, particularly in areas like Building Information Modeling (BIM), is constraining capacity. bayareabx.com+1
- Rising material costs and supply chain volatility further stress project budgets and margins. Construction Owners+2Orr Construction Company+2
- Increased emphasis on sustainability / decarbonization. Many contractors and developers are adopting greener building practices, reuse strategies, and lower carbon materials to align with regulatory and market expectations. Bizjournals+1
Implication: The sector is under pressure—especially private construction—but public works and infrastructure can act as countercyclical “overdraft” support when private investment weakens.
Major Infrastructure / Levee Work in Central Valley
- In Stockton, a critical levee along the Lower San Joaquin River has begun construction of a 1.1‑mile stretch identified as “most deficient” under the Central Valley levee system. Engineering News-Record
- Projects like this tend to be funded and prioritized by state / federal budgets, and in lean periods, such works become important lifelines to the local construction ecosystem.
Legislative / Regulatory Support for Industrial / Manufacturing Uses
- California’s Assembly Bill 130 (2025) was signed into law, which exempts many infill housing and advanced manufacturing projects (in industrial districts) from environmental review under CEQA (California Environmental Quality Act). Wikipedia
- This can reduce permitting delays, regulatory uncertainty, and cost for industrial developments. In effect, it gives industrial construction more breathing room in tough financial periods.
Construction Firm Financial Stresses & Optimism
- Granite Construction, a major infrastructure / heavy civil firm, posted a larger net loss in Q1 2025 versus a year ago, though revenue rose and backlog is strong. The firm cited optimism about continued federal infrastructure funding. bayareabx.com
- Also, there is concern over BIM skills shortages in construction, weakening labor capabilities.