Industry News: Three Out of Four Contractors Plan to Add to Their Payroll in 2018
The Associated General Contractors of America, coupled with Sage Construction and Real Estate, have gotten together to survey a number of construction firms about their plans and worries for 2018. Some of the results are expected but there’s also some truly surprising information in the mix. Read on for the highlights.
Optimistic economic conditions and other factors are likely to increase payroll
75% of construction firms that responded to the survey said that they expect they’ll expand their payrolls in 2018. There are a number of factors deemed responsible for that expectation, including optimism about economic conditions, falling tax rates, and the reducing of regulatory burdens. The same survey found that the biggest concern continues to be a concern about shortages in their workforce and continuing concerns about a lack of funding for infrastructure.
Contractors remain optimistic about the demand for construction services
The net positive reading from the survey, which pits the percentage of those who expect the market segment to grow versus the percentage of those who expect the market segment to contract, was 44% – which is the highest net positive reading since these surveys were first completed. The survey further broke down the various segments that were offering the most optimism.
They found that, nationwide, contractors are the most optimistic regarding the private office market, as evidenced by the 22% net positive reading. Next up was a tie between the warehouse and lodging market, along with the transportation and retail market, which both came in at 21% net positive. Water and sewer construction were close behind with a 20% net positive reading, followed by construction of schools from kindergarten to twelfth grade with a positive reading of 18%.
Some markets were viewed less optimistically by those responding to the survey. Hospitality and construction were both showing with a 17% net positive reading, while both public building segments and multifamily residential industries were at 16% net positive. Much further down was power construction, with 13% net positive, and higher education construction, at just 11%. The lowest on the survey was federal construction, which had a showing of just 8% net positive.
Many respondents expect their payroll increases to be small
While 75% of those who responded say that they believe they’ll be creating new or additional positions in 2018, compared to 73% who said the same in 2017, most of them say that the increase will be slim. About half of them said the increase would equate to 10% of less, while 5% of firms said that they plan to have an increase in headcount of more than 25%. 3% said that they believe they’re going to be reducing their payroll, which is down compared to 6% of respondents last year.
Bigger crews mean an increased focus on communication
With more people on the payroll, it’s more important than ever that companies are sure to have simple, effective ways for various individuals to communicate. At ECL Software, we create a number of software products that do just that. From fund control solutions to our unique JIDO software, we have you covered. Reach out online or call us at 800-625-5972 to learn more.