Associated General Contractors of Minnesota released the 2022-2023 Minnesota Construction Industry Assessment results. This valuable tool provides a unique snapshot of the projected Minnesota construction market, construction business challenges and other influences that impact the architect, engineering and construction (AEC) economy. There are countless survey tools being solicited across the industry, but only the AGC Industry Assessment covers the entire AEC spectrum and focuses exclusively on the construction discipline, according to the association.
"Overall, there is less optimism that market demand for construction services will remain strong in 2023 due to persistent inflationary headwinds, a continued lack of workforce availability and stubborn supply chain challenges," said Tim Worke, CEO. "Labor costs continue to lead as the top negative factor affecting businesses, while project funding and technology advances are the top positive indicators."
Key findings of the assessment:
- Strong demand for workers persists. The outlook for hiring in 2023 is up slightly over 2022 responses and up significantly since the 2020 pandemic-influenced report. Sixty percent of responses overall report managerial and operational costs attributable to COVID have increased, an 11 percent jump from 2020 responses.
- Equipment demand for new purchases remains strong into 2023, posting a 9 percent increase over 2022.
- The strongest market sector optimism continues to reside in alternative energy, with utility infrastructure and highway sectors also posting strong positives.
- Compared to last year, respondents report increased difficulty finding diverse talent in their local market area and consistent challenges in recruiting needed diverse craft talent. All respondents report that overall, 36 percent of clients are now requiring a DEI plan to evaluate in the proposal process.
For more information, visit agcmn.org.
About AGC of Minnesota
Organized in 1919, AGC of Minnesota is the first recognized chapter of the Associated General Contractors of America. The association is a trusted resource for information dissemination, labor relations, education and training and for advocacy on important industry-related issues.
The diverse and collective knowledge of AGC of Minnesota is powerful and impacts the building and highway construction industries throughout the state.
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