Associated General Contractors of Minnesota on Dec. 13 released the 2021-2022 Minnesota Construction Industry Assessment results. This annual survey solicits the input of contractor, material supplier, architect and engineering firms in Minnesota regarding current and future trajectories of the commercial construction market.
"Overall, respondents are strongly optimistic that market demand for construction services will be positive in 2022, reflecting a return to almost pre-COVID optimism levels," said Tim Worke, CEO. "Project cancellations and deferrals have abated slightly but remain at high levels for both building and highway markets. The pandemic remains a drag across all AEC sector but flagging market opportunity due to COVID impacts has been overtaken by stubborn supply chain disruption and skilled workforce availability as the greatest challenge to business operations."
Key findings of the assessment:
Responses show a large increase in hiring demand for 2022 over last year across all sectors.
Sixty percent of responses overall report managerial and operational costs attributable to COVID have increased, an 11 percent jump from 2020 responses.
Respondents foresee growth in alternative energy construction markets, while commercial office and retail construction may see tougher times
Material availability, cost and particularly lead times rank highest among factors expected to negatively impact business in the coming year
Many of the same workforce challenges identified in previous survey assessments persist, including workforce availability and skill training gaps.
To view the assessment, visit agcmn-c5.s3.us-east-2.amazonaws.com/2916/3937/6473/2021_Minnesota_Construction_Industry_Assessment.pdf.
