PlanHub, a cloud-based software as service (SaaS) preconstruction platform, has released its inaugural construction industry report. The 2022 PlanHub Construction Industry Report provides a snapshot of activity and trends based on platform usage and an in-depth survey of construction professionals conducted in December 2022. The report indicates general contractors and subcontractors see rising material costs, scarcity of skilled construction workers and material lead delays as major challenges in 2023 but are optimistic about growth ahead.
The PlanHub report reviewed platform activity data of 26,000 active general contractors and 270,000 subcontractors. It also includes a special survey of 465 respondents examining the biggest challenges they face, the role technology plays in their business, their outlook for 2023 and more.
Survey respondents were selected for their longevity and broad experience in the industry.
“The pandemic hit the construction industry hard,” says PlanHub CEO Ro Bhatia. “Rising material and other costs severely impacted the bottom line of contractors and subcontractors. Continued construction material inflation, the scarcity of skilled labor, and material lead delays remain significant roadblocks to success. Yet, despite these challenges, construction professionals see great opportunity ahead and are turning to technology to help drive their businesses forward.”
The report examines general contractors and subcontractors views on the outlook of the construction industry in 2023 through an industry leader survey. It provides a crucial perspective into their business, growth goals for 2023, biggest challenges and technology use.
Key Takeaways
- Top concerns. Rising material costs, scarcity of skilled construction workers and material lead delays are the chief challenges to overcome in 2023.
- Optimism for 2023. 82 percent of general contractors and 80 percent of subcontractors plan on growing their business in 2023.
- Embracing Technology. Since the beginning of 2021, a 324 percent increase was seen in the number of general contractors posting their first projects, and projects with strong activity increased 231 percent.
- More Bid Activity. General contractors increased their invitations to bid (ITBs) by 35 percent.
- Increasing Opportunity. Subcontractors have responded to adversity by seeking new ways to find business. Subcontractors expanded their reach by listing up to 20 percent more trades in which they work and expanded their service area by nearly 50 percent.
- Infrastructure Projects Increasing. The passage of the Infrastructure Investment and Jobs Act in November 2021 spurred a – 290 percent increase in civil infrastructure and transportation projects posted on PlanHub.
“To better weather the economic storm, construction professionals must focus on solving what is within their control, and technology is helping them do just that,” says Bhatia. “General contractors and subcontractors now rely on digital solutions that streamline efficiencies, increase collaboration and improve margins through greater productivity.”