AGC: Contractors Share Optimistic Outlook for New Year

A recent survey of its members by the Associated General Contractors of California (AGC of California) found that contractors are generally feeling optimistic about the construction industry’s outlook and their companies’ financial and hiring prospects in 2023.

“Our members’ feelings of optimism for their business run in tandem with an equally strong urge to grow the construction industry and hire more talent to join the industry,” said Peter Tateishi, chief executive officer, AGC of California. “As AGC of California continues to focus on delivering value for our members and the industry through our advocacy efforts, we also heavily invest in building a future workforce to meet the needs of the California construction industry that is both innovative and inclusive.”

Some key statistics from the third annual AGC of California 2023 Optimism Survey include:

• More than 58 percent of respondents said they expect business activity in California to be strong or moderate in 2023;

• More than 65 percent of respondents expect the construction industry in California to stay the same or grow in terms of expansion;

• Approximately 49 percent of respondents felt optimistic about California’s construction industry overall, outnumbering those respondents with a more pessimistic outlook (25.5 percent) by nearly two to one. One-quarter of respondents were “neutral” (neither optimistic nor pessimistic) in their outlook; and

• A strong 70.4 percent of respondents said they were optimistic about their own companies’ prospects and success in 2023.

To capitalize on the market opportunities ahead, many firms plan to continue to grow their workforce and increase their talent pool. In fact, nearly 56 percent of survey respondents expect to increase their hiring in 2023 over 2022 levels either slightly (33 percent), moderately (15.1 percent) or significantly (4.7 percent).

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According to a recent survey conducted by the AGC of California, more than 65 percent of respondents expect the construction industry in the Golden State to grow in terms of expansion or remain at similar levels to 2022. A strong 70.4 percent of respondents said they were optimistic about their own companies’ prospects and success in 2023.