Construction Contractors Optimistic for 2014 According to AGC Survey
Does your company have the construction management software needed to take advantage of an improving market?
According to the latest survey data from the Associated General Contractors of America (AGC), most construction contractors are forecasting a bright outlook for 2014. Over 800 construction firms participated in the survey during the tail end of 2013 and the first days of 2014. Here are some key points from the survey.
Plans to Hire Up Despite Labor Concerns:
About 86 percent of surveyed construction firms reported that they do intend to bring on new workers in 2014. Most plan to limit hiring to 25 or fewer workers. In part these low hiring numbers are due to plans to expand conservatively while testing the waters of the improving market, but a shortage of skilled labor may also factor in. After all, 62 percent of firms reported difficulties finding qualified professional and craft workers to hire.
Private Sector Work to Expand:
According to the chief economist at AGC, the dollar volume of construction work is expected to increase by 8 to 10 percent in 2014, which is nearly double the increase seen last year. Many construction firms agree with this forecast, and 40 percent expect to see private sector work in particular expand.
Utility Work to Outpace Highways:
Public sector construction is always a boon to contractors. For 2014, most companies predict more projects related to water and sewer utilities and fewer related to highway work.
Rising Materials & Labor Costs:
The overwhelming majority of construction contractors expect the cost of materials and healthcare to rise in 2014. All 81 percent of firms who experienced increased healthcare costs last year expect it to happen again, while 90 percent of firms expect rises in materials costs. However, about half of these firms expect materials cost increases to be low, between 1 and 5 percent.
Modest Spending on Equipment:
While the majority of construction firms surveyed do plan to lease or purchase new equipment, many intend to keep spending low. About 44 percent said they will limit purchases to $250,000 or less in 2014.
How ECL Software Can Help
A growing market is definitely a good thing for construction companies, but if your company is not prepared to respond to this growth, you could miss out on opportunities. ECL Software’s construction management software can help. This innovative system was specifically designed to meet the needs of construction firms and features user-friendly modules to handle contact management, cost estimates and proposal writing, project documentation, contract management, and payroll from a single interface. Please contact ECL Software today to learn more about how this construction management software can help your firm grow.
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