2022 Marcum National Construction Survey

POSITIONING FOR GROWTH

Looking at a company’s top priorities is a useful way to understand how it intends to position itself for success. The survey has asked this question three years in a row. Seeing how priorities have shifted over time reveals some stubborn problems with skilled labor and the need to plan and control costs. Companies across the nation are shifting some of their goals, with significant bumps in certain areas. For example, the number of companies more closely managing material vendors leaped from 14% in 2021 to 36% this year. Companies restructuring for growth went from 28% in 2021 to 40% this year. We’re also seeing more companies rethinking their approach to growth, with 21% getting into new construction trades, up from 13% the prior year. And 23% of respondents are

seeking M&A opportunities, up from 13% the prior year. Between the fight for skilled labor, the need to bid on more jobs, and opportunities presented by the COVID-19 era, M&A is likely to increase. “We feel there is a great opportunity for growth due to effects of the pandemic on small and mid- size competitors, specifically those with aging ownership with little to no succession planning,” said one executive. Our M&A sidebar on page 10 has more information on this trend. The Great Recession of 2008 provides a cautionary tale about sticking to your knitting. Diversifying is great, but in construction it must be done carefully. Ensure you’re partnering with people who really know what they’re doing because in this increasingly specialized space, it’s only possible to do a handful of things really well.

2022 MARCUM NATIONAL CONSTRUCTION SURVEY 14