Contractors Optimistic about 2023 Construction Outlook

Specialized Results Available for North Carolina and South Carolina

CHARLOTTE, N.C., Jan. 11, 2023 /PRNewswire/ -- Carolinas AGC (CAGC) announces that the construction outlook for 2023 looks to be good! On January 4, AGC of America and Sage released its 2023 National and State Hiring and Business Forecast for Commercial Construction during its annual Construction Hiring & Business Outlook at a virtual media briefing and simultaneous Facebook (facebook.com/AGCA) livestream. Panelists included Steve Sandherr, CEO of AGC of America, Ken Simonson, Chief Economist of AGC of America, Casey Schwager, Former CAGC Board Chair and Division Vice President of King Asphalt, and several others.

While contractors are optimistic about the construction outlook for 2023, they expect different market conditions for the coming year than what they experienced in 2022. Contractors are less optimistic about many private-sector segments than they were a year ago, while their expectations for the public sector market have remained relatively bullish. The bottom line is that contractors have high hopes for public funding in 2023 even as they expect to cope with continued supply chain challenges and workforce shortages

"We are optimistic about the public funding in the Carolinas," Schwager said.

Panelists agreed on several key points concerning 2023 predictions, including:

• Challenges will continue concerning supply chains, material acquisitions and costs, inflation, rising costs to borrow money, workforce development and what one speaker described as "a war on talent."
• Look for project delays, a possible slight recession but overall optimism in the construction market, with one speaker predicting a 15-20 percent increase in revenue over last year.
• Multi-family housing involving rentals should be hot in states like Florida, Colorado and the Carolinas.
• Schwager said cement costs will be an issue in 2023 in the Carolinas, along with electrical components (i.e., parts of an asphalt plant, certain types of steel) at a time when another panelist noted that it is tough to find materials such as sprinkler heads and plumbing fixtures. "If you know you will need something six months down the road, you better go ahead and order it," Schwager said.
• "Interest rates are certainly affecting any kind of real-estate producing revenue," said Ken Simonson, Chief Economist for AGC of America.

The forecast includes predictions regarding demand for numerous types of construction projects, hiring plans, how contractors will cope with workforce and supply chain challenges and whether firms will adopt new technologies. See the full report here.

North Carolina Results

US & NC Construction Outlook
North Carolina Survey Results

South Carolina Results

US & SC Construction Outlook
South Carolina Survey Results

Additional, but not all, state reports and regional analyses are available on the AGC website. View state/regional reports. (Some states are not included due to lack of response from those specific states.)

Carolinas AGC is the construction industry association in the Carolinas, bringing value to our thousands of members through networking, government relations, job leads, meetings with owners/designers, education and training involving such issues as safety and open shop, and community development. Visit us at www.cagc.org, connect with us on Twitter, Facebook, YouTube, and LinkedIn. For more information regarding CAGC call 704/372-1450.

Media Contact: Lori McGovern, 704/222-8246, [email protected].

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SOURCE Carolinas AGC