Steel demand in Las Vegas is forecast to be next to nonexistent as the slowdown in the area's construction markets is expected to grind to a screeching halt and existing vacancies are on pace to take as many as five years to be absorbed in the waning economy.

"Construction will come to a halt in 2010," said Applied Analysis analyst Jake Joyce, who covers the region. "Construction and growth accounts for 30 percent of the economy here and the outlook is bleak."

The bearish outlook for the region could be a sign that the United States is in for a slow recovery."The health of the national economy is the primary driver of the health of the Southern Nevada economy. Our economy is very tied to the health of consumer confidence and discretionary spending, not only in the U.S., but globally as well," said John Restrepo of Las Vegas-based Restrepo Consulting.

"The damage to consumer confidence and spending during this recession is unprecedented. To say that Las Vegas' construction industry has been battered by these trends and by the...