Marcum's 2023 National Construction Survey

marcumllp.com

33

What is the average number of bidders that you are competing against? 1 - 4 bidders

For contractors, which of the agreements below do your owners sign personally? Personal indemnity agreement with the surety 13% Personal guarantee agreement with bank 20% Both surety and bank personal guarantee agreements 42% Owners do not sign personally on either agreement 25% In the next 3 years in your region, do you see your business having: More opportunities 37% Fewer opportunities 26% Same amount of opportunities 37% In the next 3 years outside of your region, do you see your business having: More opportunities outside my region 33% Fewer opportunities outside my region 25% Same amount of opportunities 42% Which of the following actions are among your company’s top priorities? (Select all that apply) Cutting operational costs 47% Getting into new construction trades 9% Organizational planning 55% Managing your material vendors 28% Restructuring company to position for growth 38% Seeking M&A opportunities 18% Seeking new markets 39% Strategic planning 61% Finding solutions for skilled labor 50% Other (please specify) 4% Over the past 12 months has the average size job that you bid on: Increased 46% Decreased 20% Stayed the same 34% In the past year, which of the following have caused job delays or cancellations for your company? Material shortages 22% Labor shortages 16% Both material and labor shortages 51% We did not have delays or cancellations 11%

53% 37%

5 - 9 bidders 10 -15 bidders

8% 2%

16 or more bidders

What do you see as the biggest threat to your business over the next 12 months? Banking (tightened credit) 10% Increased difficulty in securing bonding 1% Labor costs 14% Securing skilled labor 39% Lack of work 12% Material costs 8% Unfunded pension liability 1% The current political climate 11% COVID-19 1% Other, please list 3% Over the past 12 months, what percentage, on average, have you increased the pay for your skilled labor force? We have not increased pay 7% 1-3% 21% 4-5% 34% 6-8% 23% >8% 15% What are you doing to address the lack of skilled labor? Increasing compensation 66% Conducting stay interviews 10% Performance evaluations 35% Partnering with trade schools/high schools 29% Employee recognition and appreciation programs 46% Others, please specify 11% What political issues will most impact your business in 2023? Please rank 1-9 with 1 the most impact and 9 the least impact. Material price volatility 1st Healthcare Reform and Insurance rates (Health, liability, etc.) 2nd Income tax rates 3rd