Commercial Construction Firms to Expand Headcount in 2016

The new year has just started and 2015 was a decent year for commercial construction companies/firms, so what is the expectation for 2016? The Association for General Contractors (AGC) reported recently that approximately 71% of construction firms plan to expand their headcount in 2016. This expected growth is attributed primarily to increased demand in a range of private and public sectors.

Construction Industry Outlook

The AGC and Sage Construction and Real Estate just released the results of their 2016 Construction Industry Hiring and Business Outlook survey, which indicated that contractors foresee a positive year, despite tight labor conditions, regulatory burdens and information technology (IT) security challenges.

According to the survey, contractors expect that a mix of public and private sector market segments will drive demand for construction in 2016. The respondents are most optimistic about the outlook for retail, warehouse and lodging. The respondents are less optimistic about other market segments, including manufacturing, transportation, power and direct federal segments.

The survey noted that respondents are primarily concerned about labor shortages, increasing health care costs and additional regulatory scrutiny going into 2016. In addition, many of the respondents are planning to increase their investment in IT during 2016.

The 2016 survey results were based on responses from over 1,500 construction firms from all 50 states and the District of Columbia.

The national results can be found using the following link:

The Ohio results can be found using the following link:

The Pennsylvania results can be found using the following link:

Learn more about our Construction Industry Group and read other articles pertaining to the construction industry.

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