The following data was aggregated from survey responses by industry. It is a general overview of pulse survey responses regarding optimism, strategy and outlook for 2020. Keep in mind that there were more companies responding from certain industries than others, and their outlook for the industry may not be representative of the whole.
Revenue Picture for the Construction Industry
A year ago, 70 percent of construction businesses experienced positive revenue growth. That trend has continued to improve, with 80 percent experiencing growth in 2019. Like last year, over 60 percent of construction businesses increased capital spending in the last 12 months. That trend is expected to continue as 67 percent of respondents expect to increase capital spending in 2020. Employee training and acquisition of a new facility or location are the two focus areas for capital spending in the next calendar year.
2020 Expectations for the Construction Industry
The construction industry is concerned about the current state of the global economy, with respondents rating it a 4.9 out of 10. Fortunately, the industry has a more positive outlook on the regional economy, rating it an 8.6 out of 10. The two most concerning inflationary factors for the construction industry are rising labor costs and raw materials costs.
Staffing will be a major concern for the construction industry in 2020. The top three challenges for the construction industry next year are availability of top personnel, employee and benefits costs and staff turnover. More than half of construction leaders listed these challenges as the most concerning in 2020. To combat this issue, construction leaders plan to increase compensation as their main strategy to retain top talent.
Investing in business intelligence and analytics, cloud strategy and ERP systems are the main technology trends for construction in 2020. The top goals for the industry are to find great talent, improve financial performance and grow sales. To meet these goals, construction companies will focus on existing products/services to existing markets and existing products/services to new markets as their sales strategy.