March/April 2017

Communities: Construction
Construction and Engineering Firms Optimistic About 2017

Both contractors and engineers are optimistic about the construction market in 2017, according to surveys by the Associated General Contractors of America and the American Council of Engineering Companies.

“Contractors have relatively high expectations for 2017 as they predict the economy and demands for all types of construction will grow,” says Stephen Sandherr, AGC chief executive officer. “As a result of this optimism, many firms expect to expand their headcount next year.”

A total of 46% of construction firms surveyed by AGC expect a higher dollar volume of projects in 2017 than in 2016, versus just 9% who expect a lower volume. And 73% of firms expect to increase 
their headcount.

ACEC’s Engineering Business Index shows similar optimism for 2017. Expectations for improved market conditions for one year from today climbed 8.8 points in the fourth quarter of 2016 to 72.1, the largest quarter-over-quarter increase since the survey’s inception in 2014.

However, as the Engineering Business Index report puts it, the “primary blemish on this otherwise rosy picture” is concern about finding staff, something AGC respondents agree with.

A total of 73% of construction firms report difficulty finding qualified workers. And 76% of respondents predict that labor conditions will remain tight, or get worse, in 2017.

We expect finding key staff to continue to be difficult and to be our biggest challenge,” the ACEC report quotes one respondent as saying.