Construction Firms Look to Public Sector Demand in 2023; 69% of Firms Plan to Hire, Says AGC

A new industry outlook survey from The Associated General Contractors of America and Sage shows contractors expect infrastructure and other public-sector funding will help as growth slows for many types of private construction. Labor shortages and supply chain issues persist.

Construction contractors are less optimistic about many private-sector segments than they were a year ago, but their expectations for the public sector market have remained relatively bullish. The findings are detailed in High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges: The 2023 Construction Hiring & Business Outlook.

“Contractors are optimistic about the construction outlook for 2023, yet they are expecting very different market conditions for the coming year than what they experienced last year,” said Stephen E. Sandherr, the association’s chief executive officer. “Even as market demand evolves, contractors will continue to be confronted by many of the challenges they faced in 2022, including the impacts of supply chain problems and labor shortages.”