The AGC of California recently conducted a study among construction professionals regarding the outlook for the industry in 2022.
The study delves into the California construction industry's optimism for 2022. It found that 83 percent of California's contractors are slightly to very optimistic about their company's future prospects and success in 2022, compared to 72 percent in 2021.
Additionally, 63 percent anticipate their revenues to increase (compared to 43 percent in 2021) and 61 percent expect hiring to increase (compared to 32 percent in 2021), with the chief concern listed at workforce pipeline development (this was the same in 2021).
Optimism
- Eighty three percent are slightly to very optimistic about their company's future prospects and success in 2022, with 10 percent pessimistic and 7 percent unsure;
- Seventy five percent are slightly to very optimistic about California's construction industry in 2022, with 17 percent pessimistic and 8 percent unsure.
Revenues
Sixty three percent anticipate their revenues to increase, with 24 percent who expect it to remain the same and 13 percent who anticipate it to decrease.
Net Profits
Similarly, 60 percent expect their net profits to increase, with 24 percent who expect it to remain the same and 16 percent who anticipate it to decrease.
Hiring
Sixty percent expect hiring to increase, 27 percent expect it to remain the same and 12 percent expect it to decrease.
Views of Business Activity for 2022
Eighty three percent view business activity as moderate to strong, 4 percent view it as stagnant and 13 percent anticipate a slight to significant decline.
Expansion of Industry in 2022
Sixty nine percent anticipate the industry to moderately to significantly expand, 14 percent anticipate the industry to remain the same and 17 percent anticipate expansion to decline.
Top Workforce Concerns
- Workforce pipeline development;
- Impacts from vaccine mandates;
- Need to offer higher wages/benefits to retain/hire key talent.
Top 3 COVID-19 Concerns
- Workforce pipeline development;
- Shortage of materials, equipment, parts;
- Health and safety regulation compliance.
Top 3 Concerns for Future of Construction Industry in Calif.
- Workforce pipeline;
- Increase pay and benefits;
- Workforce pipeline issues due to vaccine mandates.
