AGC of California Survey Reveals Industry Optimism for 2023


BY ERICA BERARDI


struction industry’s outlook and their companies’ financial and hiring prospects in 2023. “Our members’ feelings of optimism for their business run in


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tandem with an equally strong urge to grow the construction in- dustry and hire more talent to join the industry,” said Peter Tateishi, chief executive officer, AGC of California. “As AGC of California continues to focus on delivering value for our members and the industry through our advocacy efforts, we also heavily invest in building a future workforce to meet the needs of the California construction industry that is both innovative and inclusive.” To capitalize on the market opportunities ahead, many firms


plan to continue to grow their workforce and increase their talent pool. In fact, nearly 56% of survey respondents expect to increase their hiring in 2023 over 2022 levels either slightly (33%), moder- ately (15.1%) or significantly (4.7%). On the revenue front, nearly 58% of firms said they expect


their revenue to increase either significantly (10.1%), moderately (25.7%) or slightly (22%) in 2023, while 22.9% expect it to remain the same and 19.3% expect 2023 revenue to decrease. Asked about net profit, some 54.1% of respondents anticipate it will increase over 2022, while 22.9% expect it to remain the same and 15.6% expect it to decrease slightly. “AGC of California members acknowledge apprehension of a


potential recession, but interestingly, the majority of respondents expect their companies to continue to grow net profit and revenue in the coming year,” said Tateishi. “Respondents also expect to increase hiring in 2023, and AGC of California is continuing to capitalize and expand on our many workforce development pro- grams that prepare future workers for jobs in our vital industry.” Respondents’ concerns for the construction industry in 2023


in California include the threat of a potential recession (70.4%), workforce shortages (68.4%), regulatory requirements (62.2%)


recent survey of its members by the Associated General Contractors of California (AGC of California) found that contractors are generally feeling optimistic about the con-


and increased pay and benefits (52%), to name a few. Asked to choose the single issue they are most concerned about, 21.4% of respondents cited the threat of a potential recession, followed by workforce shortages (20.4%), regulatory requirements (17.4%), increased pay and benefits (11.2%), and unreliable infrastructure investment (8.2%), among others. Te 2023 Optimism Survey is an annual questionnaire AGC


of California issues to evaluate association members’ and the construction industry’s optimism regarding their business out- look in the coming year. Te survey, sent via email, newsletters and posted on social media, garnered 109 responses, 93.6% of whom are members. Survey participants were 56% contractor members, 20.2% associate members, 16.5% specialty contractor members, with 7.3% unsure, and they represented the vertical construction building division (56%), highway and transportation division (47.7%) and the utility and infrastructure division (31.2%) of AGC of California.


Over 58% of respondents said they expect business activity in California to be strong or moderate in 2023.


Over 65% of respondents expect the construction industry in California to stay the same or grow in terms of expansion.


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CALIFORNIA CONSTRUCTOR MARCH/APRIL 2023


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