2022 Marcum Northeast Ohio Construction Survey

67% of respondents said G&A expenses were higher in 2022 65% of respondents are budgeting for further overhead increases in 2022 of respondents said financing was more difficult to obtain – the lowest number we’ve ever recorded 5%

BONDING For respondents who act as contractors, personal indemnity agreements remain a major consideration with respect to getting capital for their business. In Northeast Ohio, a combined 69% sign personal indemnity agreements with the surety, personal guarantee agreements with banks, or both surety and bank personal guarantee agreements. This figure is 10% lower than the national survey, showing a healthy market for bonding credit. Bonding tends to only affect smaller companies, as larger ones can get personal guarantee requirements waived. Of those, only 8% sign with surety, which makes sense because it maximizes bonding ability and bank credit. If you’re struggling finding favorable financing options to grow your company, contact Marcum for expert advice. EXPENSES Although construction activity is returning to pre- pandemic levels, the costs of doing business are roaring past those levels, with breathtaking price increases for certain materials, the previously mentioned leap in labor costs and general inflation taking a toll on the bottom line. Among respondents, 67% said G&A expenses were higher last year, and 65% are budgeting for further increases in 2022 – both of these figures are slightly higher than national results. While few people foresaw the dramatic inflation of 2022, they now are bracing for it to continue.

2022 MARCUM NORTHEAST OHIO CONSTRUCTION SURVEY 4