Marcum's 2023 Northeast Ohio Construction Survey

6 THE 2023 MARCUM NORTHEAST OHIO CONSTRUCTION SURVEY

Signs of a credit pinch popped up throughout this report, most notably in worries about job cancellations. Financial Snapshot “

FINANCING Banking, rates, and securing financing went from being afterthoughts in the low-rate

BONDING Many smaller contractors rely on personal indemnity agreements for securing capital for company operations, with 66% of contractors in Northeast Ohio saying they either sign personal indemnity agreements with the surety, personal guarantee agreements with banks, or both surety and bank personal guarantee agreements. This figure is 9% lower than the national survey, perhaps indicating that bonding credit is slightly easier to come by in this region. Signs of a credit pinch popped up throughout this report, most notably in worries about job cancellations. Marcum pairs its deep expertise in construction

environment of the past 10 years or so to very much on the minds of respondents this year. While in 2022 just 5% of respondents said their ability to obtain financing decreased over the past year, that number leapt to 26% this year. Those who found financing more readily available declined from 24% in 2022 to just 3% this year. That said, the ability to obtain financing remains healthy for most construction companies, with 71% of respondents saying it was unchanged – matching the prior year. Additionally, 10% cited the tightening credit market as their biggest threat in the coming year, doubling the total from last year. The figures for Northeast Ohio track quite closely to national results.

with financial acumen to help find solutions to financing challenges, so reach out if you need any help or advice.