The Bonadio Group’s 14th annual Upstate New York Contractors State of the Industry Survey found profitability and enthusiasm trending upward for the region’s construction firms. Results measured five critical issues for today’s construction companies: contracts, surety binding issues, profitability, tax reform, and the outlook for the future.
Marc Valerio, a partner in the firm’s commercial division, oversees the survey implementation and results, which are eagerly anticipated as they indicate the health of the overall regional construction sector. Survey responses illustrate a positive trend in the outlook for the future, with 77% of respondents being either slightly or very optimistic. The number of respondents reporting being either slightly or very pessimistic was only 3%, the lowest number recorded since the 2008 survey. In addition, 82% of contractors expect revenues to increase.
“With 14 years of survey results, we are truly able to recognize patterns and trends in the construction industry in both the private and public sector, with companies of every size,” said Thomas Bonadio, CEO of The Bonadio Group. “From the impact of tax reform to the success rate on bids, it is incredibly insightful to review the responses—and this year, the results are overwhelmingly positive.”
Highlights of this year’s findings point to 92% of survey respondents reporting a profit in 2017, up from 74% in 2015. The 2017 Tax Cuts and Jobs Act has also prompted firms to take a closer look at the specifics of the legislation, with more than 60% of respondents evaluating the impact of tax reform and 51% believing it will benefit their companies. Additionally, retaining and attracting qualified personnel is acknowledged as one of the most important challenges facing the industry. Looking to the future, firms are focusing not only on hiring, but also on improving their current offerings with the necessary skill sets to meet the demands of the market.