Construction Industry Report Shines a Spotlight on Industry Challenges
Amid headwinds, construction professionals see opportunity in 2023.
PlanHub, the leading cloud-based software as service (SaaS) preconstruction platform, announced the release of 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,” said 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.
- 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% of general contractors and 80% of subcontractors plan on growing their business in 2023.
- Embracing Technology. Since the beginning of 2021, a 324% increase was seen in the number of general contractors posting their first projects, and projects with strong activity increased 231%.
- More Bid Activity. General contractors increased their invitations to bid (ITBs) by 35%.
- Increasing Opportunity. Subcontractors have responded to adversity by seeking new ways to find business. Subcontractors expanded their reach by listing up to 20% more trades in which they work and expanded their service area by nearly 50%.
- Infrastructure Projects Increasing. The passage of the Infrastructure Investment and Jobs Act in November 2021 spurred a 290% 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,” said Bhatia. “General contractors and subcontractors now rely on digital solutions that streamline efficiencies, increase collaboration and improve margins through greater productivity.”
To download the 2022 PlanHub Construction Industry Report, click here.
To learn more about PlanHub’s bid management solution for general contractors and subcontractors looking for a simpler, faster way to work, visit www.PlanHub.com.
PlanHub is the fastest-growing, cloud-based preconstruction platform that connects general contractors, subcontractors, owners and material suppliers to build relationships and improves how they collaborate, manage their business, and win more projects together.
Created by contractors, for contractors. PlanHub is the most trusted end-to-end pre-construction platform, serving 55,000 general contractors and 350,000 subcontractors. PlanHub provides easy-to-use tools that connect construction professionals, simplify the bidding process, accelerate takeoff and find more leads, as well as access to in-depth market intelligence and dedicated personal service and support to help manage and grow their businesses.
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