Seventy-one percent of construction firms plan to expand their payrolls in 2016 as contractors expect a range of public and private markets to grow, according to survey results released by the Associated General Contractors of America and Sage Construction and Real Estate. The survey indicates that contractors foresee a positive year despite tight labor conditions, regulatory burdens and IT security challenges.
“The construction industry will continue to recover in 2016 as many firms add to their headcount amid growing demand in a range of private and public sector markets,” said Stephen Sandherr, AGC’s CEO. “The industry also faces a number of challenges that have the potential to dampen, and possibly even undermine, the sector’s recovery.”
AGC officials said 71 percent of firms say they will increase headcount in 2016. In most cases, however, the hiring will only lead to modest increases in the overall size of firms. Sixty-three percent of companies report planned hiring will increase headcount by more than 25 percent this year, with 8 percent expecting to expand by more than 25 percent in 2016.
Of the 30 states with large enough survey sample sizes, Kansas responded most favorably with 95 percent of respondents planning to expand payroll in 2016. Pennsylvania was the most pessimistic with 25 percent of companies expecting to reduce headcount in 2016. For state-by-state survey results, go to: https://www.agc.org/news/2016/01/05/seventy-one-percent-construction-firms-plan-expand-headcount-2016-contractors-expect
Contractors expect a mix of private and public sector market segments will drive demand for construction in 2016. Respondents are most optimistic about the outlook for retail, warehouse and lodging. The outlook for hospital, private office, multi-family residential and higher education appears positive to most contractors.
