Firms Expect Hiring, Wages, Prospects to Increase This Year

CONTRACTORS from page 1

On the revenue front, nearly 58 percent of firms said they expect their revenue to increase either significantly (10.1 percent), moderately (25.7 percent) or slightly (22 percent) in 2023, while 22.9 percent expect it to remain the same and 19.3 percent expect 2023 revenue to decrease. Asked about net profit, some 54.1 percent of respondents anticipate it will increase over 2022, while 22.9 percent expect it to remain the same and 15.6 percent expect it to decrease slightly.

“AGC of California members acknowledge apprehension of a potential recession, but interestingly, the majority of respondents expect their companies to continue to grow net profit and revenue in the coming year,” said Tateishi. “Respondents also expect to increase hiring in 2023 and AGC of California is continuing to capitalize and expand on our many workforce development programs that prepare future workers for jobs in our vital industry.”

Respondents’ concerns for the construction industry in 2023 in California include the threat of a potential recession (70.4 percent), workforce shortages (68.4 percent), regulatory requirements (62.2 percent) and increased pay and benefits (52 percent), to name a few. Asked to choose the single issue they are most concerned about, 21.4 percent of respondents cited the threat of a potential recession, followed by workforce shortages (20.4 percent), regulatory requirements (17.4 percent), increased pay and benefits (11.2 percent) and unreliable infrastructure investment (8.2 percent), among others.

The 2023 Optimism Survey is an annual questionnaire AGC of California issues to evaluate association members’ and the construction industry’s optimism regarding their business outlook in the coming year. The survey, sent via email, newsletters and posted on social media, garnered 109 responses, 93.6 percent of whom are members. Survey par- ticipants were 56 percent contractor members, 20.2 percent associate members, 16.5 percent specialty contractor members, with 7.3 percent unsure and they represented the vertical construction building division (56 percent), highway and transportation division (47.7 percent) and the utility and infrastructure division (31.2 percent) of AGC of California. By total dollar amount of work in 2022, 20.2 percent performed $500 million and above, 22 percent performed $100 million to $500 million, 11.9 percent performed $25 million to $50 million and more than 28 percent performed $25 million or less.

About Associated General Contractors of California

Since 1920, the Associated General Contractors of California (AGC of California) has worked alongside members to provide advocacy, education, career development, and networking opportunities to experienced and next generation construction and contracting professionals. AGC of California advocates for contractors with state and local governments, while helping members connect with industry leaders through services, innovative programs, and events.

For more information, visit www.agc-ca.org. 

Caltrans

Respondents’ concerns for the construction industry in 2023 in California include the threat of a potential recession (70.4 percent), workforce shortages (68.4 percent), regulatory requirements (62.2 percent) and increased pay and benefits (52 percent).