2022 Marcum National Construction Survey

Despite Headwinds, Contractors Remain Upbeat continued By Anirban Basu, Chief Construction Economist

Securing skilled labor continues to top the list of concerns...

NEW SURVEY, SAME CONCERNS One word neatly summarizes current contractor concerns: scarcity. This concern takes numerous firms, including a dearth of skilled workers, equipment and materials shortages, and an occasional lack of funding and financial conditions tighten. For now, contractors are not especially concerned by prospects for securing work. Demand is strong. Supplying construction services to meet contractual obligations is what has many construction industry leaders unnerved. Securing skilled labor continues to top the list of concerns, with 27 percent of respondents citing it as the biggest threat to their enterprise. Though this was up slightly from last year’s survey, it is still below what it was pre-pandemic when one in three respondents ranked it first.

Attendant with skills/labor shortages are rising compensation levels. Nearly 40 percent of respondents noted that they have increased pay somewhere between 4 and 5 percent in an effort to recruit skilled workers over the past year. A meaty 28 percent have increased pay by 6 percent or more. In terms of identifying principal concerns, the biggest change from last year was growing and acute dismay regarding rising material prices. In early-2021, when the threat of inflation had not yet materialized, only 12 percent of respondents listed material costs as their biggest concern. Prior to COVID, only 5 percent were seriously concerned. The latest survey indicates that 23 percent of respondents listed material costs as the biggest threat. Additionally, when asked what political issue would most impact their business operations, material price volatility was at the top of their list.

2022 MARCUM NATIONAL CONSTRUCTION SURVEY 26