Thanks to the Infrastructure Investment and Jobs Act that was passed in November 2021, contractors country-wide are optimistic about their 2022 prospects. However, according to a survey report released by the Associated General Contractors of America, significant challenges still remain.
Over 1,000 American contractors were surveyed, and many were positive about the available bidding projects in 2022, since they have such a high dollar value. Respondents who expect the dollar value to expand is higher than those who expect it to shrink. Power construction is expected to benefit from the new law.
The authors wrote, “This represents a stark turnaround from the 2021 survey, in which contractors were bearish about the prospects for all but a few segments.”
Just under half of the respondents are looking to increase their employees by 10 percent or less, and more than a quarter of them anticipated bigger gains.
The report stated, “The construction industry is in much better shape overall than a year ago but there is wide variation among companies. For instance, small contractors, on average, have been slower to recover than larger businesses and are generally less optimistic about the 2022 outlook. While contractors in all regions expect 2022 to be a year of growth in business opportunities and employment, firms in the Northeast are less upbeat than elsewhere.”
Rising material process and supply chain dilemmas posed significant challenges which were exacerbated by the global pandemic. Higher prices were given for bids and contracts, with 44 percent noting longer completion rates. With increased supply chain issues, accelerated purchases were secured and winning contracts have turned to alternative suppliers.
The authors wrote, “While the past year has been filled with many challenges, technology has played an integral role in keeping people connected and businesses up and running. Firms are becoming more strategic about IT as they try to remain competitive in the current environment.”
With the rising use of technology comes an increase in electrical use. Connectivity is imperative, so many companies are utilizing electrical contractors to ensure their IT challenges are being handled.
The report states, “The use of information technology, however, continues to pose challenges. Forty-one percent of contractors say it’s difficult to find the time to implement and train on new technology, 39% list keeping company data secure from hackers as one of their biggest IT challenges, and more than a third cite connectivity to remote job sites or communication between field and office as among the biggest IT challenges.”
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J&P Electrical is a full-service electrical supply company. At J&P, we source contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of heavy industrial electrical equipment such as bus plugs, bus duct, transformers, circuit breakers, fuses, and switchboards. Call us at 877-844-5514 or visit us at https://www.jpelectricalcompany.com.
Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.