Photo courtesy of Caltrans
Regarding potential revenue gains, an optimistic 66 percent of companies predict that its revenue will experience an uptick in 2024 compared to the year prior.
The Associated General Contractors of California (AGC of California) recently conducted a membership survey revealing feelings of optimism among contractors toward the future of the construction industry. A positive outlook is apparent as respondents anticipate favorable financial performance and recruitment opportunities for their companies in 2024.
Photo courtesy of Caltrans
"The collective optimism of our members is the cornerstone driving the construction industry's growth," said Peter Tateishi, chief executive officer, AGC of California. "It is their confidence that fuels innovation and attracts skilled talent essential to our ever-expanding workforce. The survey serves as a barometer to gauge the optimism of our members within the industry. This insight guides us in offering tangible value through our comprehensive workforce development, robust advocacy, and leadership programs that foster inclusivity."
Noteworthy insights from the AGC of California 2024 Optimism Survey highlight the following:
- Approximately 59 percent of survey respondents foresee growth or a moderate surge in business activities within California in 2024;
- More than 69 percent of those surveyed anticipate that the California construction sector will maintain its current pace or witness growth in expansion;
- Approximately 67 percent of respondents felt optimistic regarding the overall state of California's construction industry, greatly surpassing the 16.8 percent who shared a less favorable view.
- Approximately 15 percent of respondents remained impartial, expressing a ‘neutral' perspective. A strong 80 percent of respondents felt confident in the future success and potential of their own companies' prospects in 2024.
To take advantage of upcoming market prospects, a multitude of companies are looking to bolster their workforce and enhance their bench of skilled professionals. Notably, 47.5 percent of those surveyed anticipate stepping up their recruitment efforts in 2024, with 26.7 percent planning a slight increase, 18 percent aiming for a moderate rise and almost 2 percent preparing for a substantial upswing in hiring.
Photo courtesy of Caltrans
Regarding potential revenue gains, an optimistic 66 percent of companies predict that their revenue will experience an uptick in 2024 compared to the year prior — 7.6 percent foresee a significant boost, while 30.2 percent expect a moderate elevation and 27.4 percent are looking forward to a slight increase in the coming year. Conversely, 20.6 percent of firms project revenue to plateau and 14 percent anticipate a downturn.
When it comes to net profit expectations for 2024, approximately 61.3 percent of respondents are hopeful for an increase. Meanwhile, nearly 17 percent anticipate profits to stabilize without change, and 14.1 percent foresee a marginal decline.
"Despite a concern among the majority of respondents about the need for more skilled workers, a significant portion project that hiring will maintain its current pace or even rise in 2024," Tateishi commented. "We are committed to leveraging the scope of our workforce development programs, which are crucial for equipping future employees with the skills needed in our critical industry."
The worries surrounding California's construction industry for the year 2024 notably revolve around a scarcity of skilled labor, with 73.7 percent expressing this concern. Stringent regulatory demands were cited by 64.2 percent, while the pressure to escalate wages and benefits was cited by 61.1 percent of respondents. When prompted to identify their primary concern, workforce pipeline development rose to the forefront for 27.4 percent of those surveyed, with regulatory issues trailing closely as the second most significant concern for 25.3 percent of respondents while, 10.5 pecent highlighted anxiety over a looming recession as their top worry.
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