Marcum's 2023 Northeast Ohio Construction Survey

marcumllp.com

25

Survey Results

Do you feel that over the past year the ability to obtain financing has: Decreased

Over the past 12 months has the average size job that you bid on: Increased 44% Decreased 12% Stayed the same 44% In the past year, which of the following have caused job delays or cancellations for your company? Material shortages 16% Labor shortages 9% Both material and labor shortages 65% We did not have delays or cancellations 10% What is the average number of bidders that you are competing against? 1 - 4 bidders 66% 5 - 9 bidders 30% 10 -15 bidders 3% 16 or more bidders 1% 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 0% Labor costs 9% Securing skilled labor 46% Lack of work 11% Material costs 10% Unfunded pension liability 0% The current political climate 13% COVID-19 0% Other, please list 1% Over the past 12 months, what percentage, on average, have you increased the pay for your skilled labor force? We have not increased pay 9% 1-3% 20% 4-5% 36% 6-8% 20% >8% 15%

26% 71%

Stayed about the same

Increased

3% 0%

Decreased significantly

What is the current outlook on your bonding capacity? It will be significantly more difficult to obtain bonding 0% It will be somewhat more difficult to obtain bonding 15% It will be neither more nor less difficult to obtain bonding 85% It will be somewhat less difficult to obtain bonding 0% It will be significantly less difficult to obtain bonding 0% For contractors, which of the agreements below do your owners sign personally? Personal indemnity agreement with the surety 7% Personal guarantee agreement with bank 14% Both surety and bank personal guarantee agreements 45% Owners do not sign personally on either agreement 34% In the next 3 years in your region, do you see your business having: More opportunities 36% Fewer opportunities 29% Same amount of opportunities 35% In the next 3 years outside of your region, do you see your business having: More opportunities outside my region 44% Fewer opportunities outside my region 16% Same amount of opportunities 40% Which of the following actions are among your company’s top priorities? (Select all that apply) Cutting operational costs 43% Getting into new construction trades 2% Organizational planning 60% Managing your material vendors 30% Restructuring company to position for growth 39% Seeking M&A opportunities 18% Seeking new markets 38% Strategic planning 54% Finding solutions for skilled labor 63% Other (please specify) 3%