AGC Contractors Optimistic About the Year Ahead


BY CAROL EATON


Jobs Act, AGC of California surveyed companies indicate strong opti- mism about their prospects for revenue growth and success in 2022. “Contractors are optimistic in the opportunities in front of


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us this year. Obviously, COVID – and regulations surrounding COVID – still create some uncertainty,” said Dina Kimble, AGC 2022 president. “But contractors are an optimistic group and rarely shy away from uncertainty. AGC is our critical partner in helping us navigate these uncertainties and capture the opportunities that we see in our markets.” AGC of California’s Industry Optimism Survey gathers input annually from construction companies on everything from rev-


Optimism on California’s Construction Industry: • 75% of respondents are slightly to very optimistic about California’s construction industry in 2022


• 17% of respondents are pessimistic


• 8% are unsure


s California gradually emerges from the pandemic and billions in infrastructure dollars start trickling down the pipeline from the Federal Infrastructure Investment and


enue and profit projections to top concerns for the year ahead. In late 2021, AGC received over 110 responses, of which 55% are contractor members, 19% are specialty members, 16% are asso- ciate members, and 10% are unsure. Of those respondents, 57% work with the building sector, 53% in highway and transportation, and 38% in utility and infrastructure. For 2022, 82% of respondents report they are optimistic about their company’s prospects and success with 63% expecting revenue gains and 59% seeing net income growth year-over-year. And for the California construction industry overall, 75% of respondents say they are optimistic with 83% expecting moderate to strong business activity. Following are key takeaways from the survey as companies look to 2022:


Net Profit: • 59% of respondents expect their firm to post net profit increase year-over-year


• 24% expect net profit to remain the same


• 17% anticipate net profit to decrease


Expansion of Industry in 2022: • 69% of respondents anticipate the industry to moderately to significantly expand


• 14% expect the industry expansion to remain the same


• 17% anticipate expansion to decline


Optimism on Company’s 2022 Prospects and Success: • 82% are slightly to very optimistic about their company’s prospects and success in 2022


• 11% are pessimistic • 7% are unsure


Hiring: • 61% of respondents expect to increase hiring


• 27% expect hiring to remain the same


• 12% expect hiring to decrease


Workforce Concerns: • 40% said workforce shortage • 21% said impacts from vaccine mandates


• 17% said the need to offer higher wages/benefits to retain/hire key talent


• 14% said COVID-19 regulations


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CALIFORNIA CONSTRUCTOR MARCH-APRIL 2022


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