Marcum LLP, a national accounting and advisory firm, has released its 2024 Marcum National Construction Survey. This comprehensive report provides critical insights into the construction industry’s current state and future outlook based on responses from industry leaders nationwide.
Key findings include:
- Healthcare sector remains strong: The office construction market continues to slump due to permanent changes in the white-collar workspace, while healthcare, education and renewable energy projects enjoy strong demand.
- Optimism tempered by uncertainty: The survey reveals cautious optimism among construction industry leaders. While there is a general sense of confidence, it is balanced by concerns about economic and political uncertainties, particularly in an election year.
- Federal funding impact: The Infrastructure Investment and Jobs Act, CHIPS Act and Inflation Reduction Act are expected to fuel growth in the construction sector. Significant federal funding is earmarked for infrastructure, semiconductor manufacturing, and clean energy projects.
- Skilled labor shortage: The ongoing struggle to find and retain skilled labor remains a top concern for construction companies, with 29% of respondents citing it as the biggest threat to business.
- Economic resilience: Despite inflation and cost-of-living increases, the construction sector shows remarkable resilience with healthy backlogs and fewer bidders per job, indicating a strong demand for construction services.
- Financial challenges: Higher interest rates and tightening credit conditions are causing project delays and cancellations, with 38% of respondents indicating that securing project financing has been a significant issue.
- Changing competitive landscape: The number of bidders per project has significantly declined, with 65% of respondents facing just 1-4 bidders on average. This represents the first time Marcum survey respondents have reported such a low level of competition for projects.
The full report can be downloaded here.
