Commentary: The Hidden Risk in Florida’s Construction Boom

Florida’s construction sector is booming — $48 billion in projects are currently underway or planned statewide. But behind the impressive numbers lurks a risk that too few in the industry are discussing: the growing concentration of large projects among a shrinking number of mega-contractors.

When Tutor Perini declared bankruptcy and several mid-sized regional contractors exited the market over the past two years, the competitive landscape shifted dramatically. Today, a handful of national firms dominate Florida’s largest projects, while hundreds of smaller local contractors struggle to compete for anything beyond residential and small commercial work.

This consolidation threatens the ecosystem that makes Florida’s construction industry dynamic. Local subcontractors lose negotiating power. Minority and women-owned firms face higher barriers to participation. And when one of those mega-contractors stumbles — as they inevitably do — the ripple effects can stall critical infrastructure projects for months or years.

Florida policymakers and project owners should actively support bonding programs, mentor-protégé arrangements, and project unbundling strategies that keep mid-sized and local firms competitive. A healthy construction market needs diversity at every tier.

By Robert Chen, Construction Industry Economist, University of Florida M.E. Rinker School of Construction Management

Author: Catherine Marsh

Legal & Regulatory Affairs Editor. Tracks construction legislation, OSHA enforcement, and licensing policy in Tallahassee and Washington. Former construction law paralegal and policy analyst.