2020 Marcum Northeast Ohio Construction Survey

2020 MARCUM NORTHEAST OHIO CONSTRUCTION SURVEY 2020 MARCUM NORTHEAST OHIO CONSTRUCTION SURVEY

There is potential for lack of work due to projects being postponed or terminated due to COVID-19. - SURVEY RESPONDENT

COMPETITION The number of bidders that contractors compete against is a good measure of the health of the construction industry. There was a significant decrease in those respondents seeing 1-4 bidders, down from 69% in 2019 to 55% this year. Instead, more respondents chose 5-9 bidders, indicating tougher competition. Respondents that saw their average size job increase over the past 12 months declined from 50% in 2019 to 37% this year, the lowest level since 2013, when the economy was climbing out of the recession. With larger markets included in the national construction survey, it doesn’t surprise us that 48% of national respondents report a larger average job size.  In the future (next 12 months), your company’s budget for overhead expenditures will:

NATIONAL

OHIO

Increase

42%

Increase

36%

Stay the same

49%

Stay the same

42%

16%

15%

Decrease

Decrease

BACKLOG This year, more than one-quarter (26%) of respondents expect a decrease in their construction backlog year over year, the highest percentage since we began asking the question in 2018 and up more than 8% from a year ago. The good news is that 24% of 2020 respondents predict their backlog will increase by more than 15%, compared with 18% of respondents in 2019. Overall, 74% see backlog remaining the same or improving, a healthy indicator that is right in line with the rest of the country.

We are most focused on improving profit margins and retaining clients until we see

the outcome of the 2020 election. - pre - pandemic survey respondent

9

8

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