In a view that has come out, the US-based construction contractors happen to be struggling to cope with prominent labor shortages, the effects of higher interest rates as well as input costs, and also a supply chain that, although being better, still happens to be far from normal, as per the survey results that were released by the Associated General Contractors of America and Sage.
As regards varied sectors, the public sector, data centers, as well as manufacturing construction are anticipated to be positive and to offset the dips in retail, lodging, and office work.
It is well worth noting that the construction contractors in the US happen to have a decidedly mixed outlook for 2024 since firms anticipate transitions in demand for projects, the kinds of challenges they will go on to face, and the technologies, such as artificial intelligence, they will have, according to survey results published in, A Construction Market in Transition: The 2024 Construction Hiring and Business Outlook.
The association’s chief executive officer, Stephen E. Sandherr, opines that 2024 offers a mixed bag for construction contractors, as on the one hand, demand for numerous kinds of projects should continue to broaden and firms would continue to invest in the tools they require to be more efficient. At the same time, they go on to face significant challenges in terms of finding workers, coping with the costs that are rising and weathering the effects in terms of higher interest rates.
Apparently, the net reading, which is the percentage of respondents who anticipate the available dollar value of projects to be higher as compared to the percentage who expect it to subside, happens to be positive for 14 of the 17 categories of construction that have been included in the survey, as it was done in 2023. But a smaller share than previously anticipates the markets they go on to compete in to expand in the year to come. The net reading dipped from the 2023 survey for nine project types, was elevated for six types, and remained the same for two.
It is well to be noted that the highest net positive reading in the 2024 survey, which was 32%, happened to be for water and sewer construction. The net reading when it comes to federal projects happens to be 29%, and the highest anticipation among predominantly private-sector categories is indeed for power projects, having a net reading of 25%.
Data center construction
The largest rise in optimism from the survey done previously happens to be for data center construction, having a net positive reading of 20%, which is up from 12% a year ago.
The association’s chief economist, Ken Simonson, says that the contractors are indeed upbeat when it comes to the available dollar value of projects to bid on this year. But the optimism with regards to opportunities for most project types happens to be less widespread than it was a year ago.
He further noted that more than two-thirds, which is 69% of the respondents, anticipate to add to their headcount, vis-Ã -vis to only 10% who anticipate a dip. Where just less than half- 47% of the firms look to increase their headcount by 10% or even less, almost one-quarter expect bigger surges.
But 77% of the respondents go on to report they happen to be having a hard time filling some or entire salaried or hourly craft positions. The majority, which is 55%, anticipates that hiring will go on to be hard, or 20% expect it to be harder.
Apparently, most firms went on to take steps in 2023 so as to attract as well as retain workers. More than 60% increased base pay rates further than in 2022. Apart from this, additionally, 25% of firms went on to offer incentives or bonuses, whereas 24% of the firms elevated their portion when it comes to benefit contributions and/or much enhanced employee benefits.
