The 2012 Construction Hiring and Business Outlook Report generated by the The Associated General Contractors of America (AGC) indicates that the prospects for the the construction industry is mixed for 2012. According to the report, firms are balancing growing demand for some private sector market segments with continued weakness in other key private market sectors, combined with the phasing out of the stimulus package and declining public works construction.
The main findings of the AGC 2012 outlook are:
Private Sector Market Outlook Improving, Public Sector to Weaken In the private sector, power, hospital and higher education sectors are seeing increases in construction spending. However, large declines in highway and transportation infrastructure projects are expected in 2012.
Construction Employment to Improve… Slightly Thirty-two percent (32%) of firms plan to add staff this year, with only nine (9%) percent planning to lay off staff.
Tight Credit is Delaying or Canceling Many Projects
Conditions tied to lending have become more restrictive, forcing many owners to delay or cancel construction projects. Construction companies themselves have not experienced the tight bank credit conditions directly, but many have indicated that tighter lending conditions have caused their customers to delay or completely cancel construction projects.
Cautious Firms are Quicker to Lease, Instead of Buy, New Equipment
Caution against laying out large amounts of capital is a continuing trend. Firms are concerned about future revenues, and are reluctant to lay out large sums of cash for equipment without more optimistic construction forecasts.
The findings contained in the ACG 2012 Outlook is the result of click here.