Cautious Optimism Revealed in Annual Construction Survey

Construction contractors remain cautiously optimistic a year after the industry’s post-pandemic comeback started in earnest, according to the 2022 Marcum National Construction Survey. Contractors reported being buoyed by the federal infrastructure bill, growing backlogs and other tailwinds.

The annual survey is conducted by Marcum LLP. The survey covers a range of topics, from top priorities to problems, strategies, possible solutions and the lingering effects of the pandemic.

Among this year’s key findings, close to 60% of respondents said they expect more opportunity in the future, up from 54% in 2021. More than half (69%) expect the Infrastructure Investment and Jobs Act to have a positive financial impact on their businesses.

The industry’s upbeat outlook is also supported by a significant increase in backlogs, with 48% of respondents (up from 29% in 2021) reporting higher backlogs than the previous year.

Some other key findings of the 2022 report include:

• Construction companies report finances remained solid, with 13% of respondents saying it had become more difficult to obtain financing and the majority saying access to capital was the same or improved.
• Material price volatility remained the top issue for construction company executives, followed by healthcare and insurance costs. Workers’ compensation issues jumped to No. 3, edging out income taxes.
• 95% of respondents increased worker pay to combat labor shortages. Of those, 67% offered raises of 4% or more, and 13% increased compensation by more than 8%.
• 27% of respondents are filling skills gaps by forming or considering joint ventures.
• The number of respondents considering an ESOP more than doubled from the prior survey, and the number of ESOP companies increased by 5%.
• Companies restructuring for growth climbed from 28% in 2021 to 40% this year. 23% of respondents said they are seeking mergers and acquisitions opportunities, up from 13% a year ago.
• 49% of respondents were working on larger projects in 2021; 11% reported the average job size had decreased.
• 89% said jobs were delayed by material shortages, labor shortages or both at some point during the year.

For the complete survey, visit marcumllp.com/construction.