The State of Construction 2023
It’s been a strange and difficult past few years for the construction industry, that much is fact. Contractors and builders across the country have had to address never before seen issues, and ask themselves tough questions about the future ahead. That being said, there are plenty of positives to keep in mind that came out of 2022, as we move on into 2023.
From supply chain worries to a massive increase in relevant federal funding, we’ll walk you through what the experts are saying to expect in the world of construction this year. Most importantly, we’ll show you just how SharpeSoft can help keep your business thriving in these interesting times.
But First, the Bad News
Ken Simonson, Chief Economist at Associated General Contractors of America, warns of a few continuing trends for 2023 that began years prior with the start of the pandemic. Namely, the general unavailability of labor. While contractors have been steadily increasing base pay in an effort to draw in additional workers, 80% describe still having difficulty filling these positions. An unintended side effect is that a majority of these contractors fear that the remaining unskilled labor available to them could increase general safety risks for their projects and other employees.
Courtesy of AGC
This lack in labor in turn compounds with other issues, such as rising prices as a result of bottlenecks in the supply chain. A breakdown that began with global stresses brought on by Covid-19, improvement has been slow in part due to the ongoing war in Ukraine. Because of this, important construction materials such as asphalt, diesel, and cement have seen a surge in price due to unavailability.
Hope is on the Horizon
However, not everything is doom and gloom. Builders can expect to be bullish this year, largely thanks to federal funding. The U.S. Bipartisan Infrastructure Law promises $500 billion in new spending, divided up in half between improving the existing transportation network, and for improving other core infrastructure works. In total, the law will allocate $1.2 trillion over the next 10 years for relevant infrastructure work.
The supply chain bottlenecks are also projected to lessen this year, though this may not impact rising prices immediately. Ultimately, contractors could see this as a potential benefit, as bid prices will be expected to rise as well.
According to AGC’s industry outlook survey for 2023, a majority of contractors believe the dollar value of projects will increase from 2022 (14~17%). Survey respondents were most optimistic about a growth in infrastructure categories (42%), with almost as much optimism for water and sewer projects (37%).
How SharpeSoft Can Help
The issues of the past few years are still here with us, no matter how comforting it may be to hear that we’re getting close to the light at the end of the tunnel. Until then, contractors need to be especially careful when it comes to picking the right tools for the job. Software is no different, and that’s where SharpeSoft can make a difference.
The same AGC survey also found that the biggest information technology challenge is simply finding the time to implement and train on new programs. These new technologies are important, as they can help alleviate other problems in the future. And given that a continued increase of construction software usage is predicted for 2023, it's equally important to find a product that's right for your business.
Courtesy of AGC
SharpeSoft Estimator is just one such product. We hear time and time again that Estimator is the best value for its price, allowing you to focus on being competitive for the next bid. Our renowned service and success teams work together with you on a personal basis to get you set up faster than anyone else on the market today, with the most intuitive construction estimating software available.