Tue January 16, 2024 – Midwest Edition #2
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Associated General Contractors of Minnesota released the 2023-2024 Minnesota Construction Industry Assessment results. This valuable tool provides a unique snapshot of the projected Minnesota construction market, construction business challenges and other influences that impact the architect, engineering and construction (AEC) economy. While there are countless survey tools being solicited across the industry, the AGC Industry Assessment covers the entire AEC spectrum and focuses exclusively on the construction discipline.
“Overall, the outlook for 2024 construction services is slightly more positive than last year, with engineering services reflecting the greatest positive outlook projection,” said Tim Worke, CEO. “Construction demand is likely to remain strong into next year, yet headwinds generated by high inflation, tight skilled labor availability and increased labor costs are the highest negative indicators impacting construction businesses and future market optimism.”
Key findings of the assessment:
- A tight labor supply continues to be a strong drag on the industry’s overall performance as the unrelenting demand for workers persists. The hiring outlook for 2024 mirrors 2023 as over 60 percent report plans to conduct “significant hiring” or “some hiring” in 2024
- When sourcing craft workers, word of mouth recruiting remains the top approach for both signatory and non-signatory contractors
- Employers providing a positive workplace culture is cited as the top factor to attract and retain talent while promoting and offering remote working options is in decline among employers when compared to prior responses
- 58 percent of GCs report using at least one to five new disadvantaged firms in 2023 compared to 49 percent in 2022
To view the assessment, visit https://agcmn-c5.s3.us-east-2.amazonaws.com/2217/0179/6577/2023_Industry_Assessment.pdf.
About AGC of Minnesota
Organized in 1919, AGC of Minnesota is the first recognized chapter of the Associated General Contractors of America. The association is a resource for information dissemination, labor relations, education and training and for advocacy on important industry-related issues. The diverse and collective knowledge of AGC of Minnesota is powerful and impacts the building and highway construction industries throughout the state.
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