Contractors remain cautiously optimistic in 2023

While contractors are largely positive about what 2023 has in store, workforce shortages continue to be a source of concern. Photo: Martin Barraud / iStock / Getty Images Plus/Getty Images

Several contractors from throughout the U.S. joined AGC and Sage Policy Group during a webcast to offer their thoughts on what they expect in 2023.

Contractors are optimistic about public projects, even despite concerns about labor shortages. Overall, their outlook for 2023 is positive, with one contractor planning ahead for the good, the bad and the ugly.

Mac Caddell, president of Montgomery, Alabama-based Caddell Construction, says his business has grown and is thriving despite economic woes. Despite those, Caddell is bracing for continued challenges within the workforce, the supply chain and with pricing.

“Going forward into 2023, the war for talent has had a huge effect on us and the entire industry,” he says. “The workforce shortages make everything take longer and cost more, and we see that continuing into 2023. The same [goes] with supply chain issues. Material cost issues will continue to have profound effects on schedules and affordability of new projects.”

Chris Long, president and COO of Kaufman Lynn Construction based in Delray Beach, Florida, agrees labor shortages will continue to be an issue in 2023. However, Long is optimistic both about what’s to come in the public sector and for the year overall – despite recession fears.

“We do a broad brush of public sector projects,” he says. “Anything from parks to public safety to support outdated public facilities. Those markets are really strong.”

Long is bullish about the private sector this year, as well.

“About 60 percent of our business is focused on multifamily, mostly for-rent [and] not for-sale products,” he says. “South Florida is different than a lot of the other markets regionally because of the influx of people that we’ve had [who] continue to come and enjoy the South Florida weather. That market has remained strong.”

John Casella, president of Pittsford, Vermont-based Casella Construction, says while workforce challenges pose the biggest threat in 2023, they are also the biggest opportunity for contractors.

“As an industry, it is a problem that everybody has and it’s an opportunity as an industry to retell our story,” Casella says. “I think a lot of the easy levers have been pulled from a wage and benefit standpoint. Now, we’re really needing to look at all the things everyone is talking about – demographics, culture, what our jobs look like – and we need to continue to invest in that to bring people into the trades.”

Casella agrees the public market could be a bright spot for contractors in 2023 if funding and timing hurdles can be cleared. Regionally, his outlook for the private market is less than glowing.

“The public pipeline is strong but we’re seeing a lot of budget issues [and] timing issues,” he says. “By the time projects make it to the bid process, they’re over budget and need to go back. We’re seeing a lot of slow starts. On the private side of things, we’re seeing a lot of skepticism and softness in the market. It’s mostly around interest rates and fear of where things are going.”

Overall, Casella is largely positive about the year ahead, but his outlook is contingent on firms sorting out hiring issues.

“We still feel really positive overall,” he says. “Those that can figure out the labor challenges and put teams together are going to be able to do well. Those that aren’t are going to struggle to put any work into the ground.”

« Prev Page 1 2 3 Next Page »