Sources: Marcum LLP, New York; CP staff
Researchers for the Construction Services Group of Marcum LLP, a leading accounting and advisory firm, paint an overall positive view of current and future market trends in their just-released 2024 Marcum National Construction Survey. Key findings gleaned from responses to a 27-point survey of executives in building and nonbuilding markets include:
- Optimism tempered by uncertainty. A general sense of confidence among construction leaders is balanced by concerns about economic and political uncertainties, particularly in an election year.
- Federal funding. The Infrastructure Investment and Jobs Act, CHIPS Act, and Inflation Reduction Act are expected to fuel growth. Significant 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, with 29 percent of respondents citing it as their biggest business threat.
- Changing competitive landscape. The number of bidders per project has significantly declined, with 65 percent of respondents facing just one to four bidders on average—a new low watermark for the survey.
- 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.
- Cybersecurity concerns. Cyber threats are growing in number and sophistication, making it crucial for construction companies to enhance their cybersecurity measures to protect against potential attacks.
- Financial challenges. Higher interest rates and tightening credit conditions are causing project delays or cancellations; 38 percent of respondents cite securing project financing as a significant issue.
- Underutilized tax incentives. Construction companies are not taking full advantage of available tax incentives; 37 percent of respondents are not leveraging any of the eight tax incentives specified in the survey.
“Despite the challenges facing the construction industry, the overall outlook remains positive,” says Marcum National Construction Industry Leader Joseph Natarelli. “It is surprising to see how many construction companies and contractors leave money on the table by not utilizing valuable tax incentives and programs. I encourage leaders to explore those opportunities and those created by new technological advances to future-proof their business and brace for potential changes in the outlook.”