![]() Anticipating that the demand for most construction projects will be on the upside in the months to come, contractors across the nation are feeling bullish about business prospects in 2022. So says a new report just issued by the Associated General Contractors of America noting that much of the current industry optimism “stems in part from the fact that the federal government has committed to increase investments in a broad range of infrastructure.” The report, Expecting Growth While Coping with the Lingering Impacts of the Pandemic, additionally notes that the new-found optimism “reflect the fact that demand for many types of private-sector projects, including health care and warehousing facilities, have grown as a result of the pandemic.” Done in conjunction with the payment systems company Sage, the report reveals that contractors are generally upbeat regarding the “available dollar value of projects to bid on in 2022,” feeling particularly hopeful when it comes to highway and bridge projects; as well as transit, rail, and airport work. The highest expectations are related to generally private-sector categories such as warehouses, clinics, testing facilities, and medical labs; followed by the multifamily residential sector. “The construction industry is in much better shape overall than a year ago,” says the report, “but there is wide variation among companies.” That means that while 52% of responding firms report that their current volume of business is up over early 2021, around 33% says things are pretty much the same compared to 12 months ago. Smaller contracting firms, experiencing a slower pace of recovery, are “generally less optimistic about the 2022 outlook.” Meanwhile, looking at matters regionally, 57% of firms in the South and 54% in the West said business as of late 2021 was up over late 2020. Those numbers were noticeably lower in the Midwest, with 50% of firms saying their volume of business was up, and only 40% in the Northeast. Despite the generally upbeat views, the issues of materials costs, supply chain challenges, and finding qualified workers continues to plague even the most optimistic contractor. The report notes that a huge 86% of respondents pointed to material costs as their top concern in 2022, followed by 79% who expressed worries about the supply chain; and 73% pointing to worker shortages. By Garry Boulard
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