Contractors’ Expectations Continue to Rise

Based on the latest U.S. Chamber of Commerce Commercial Construction Index, U.S. contractors are growing increasingly more optimistic which is mainly driven by a rise in revenue expectations. 

In the first quarter of 2021, 36% of contractors said they expect to see an increase in their revenue over the next 12 months, which is an increase of over 11% since the fourth quarter of 2020.  Over 87% of contractors expect their revenue to either stay the same or increase over the next months which is again showing an increase from the fourth quarter of 2020.  In addition, approximately 46% of contractors are confident they will employ more people in the next 6 months which is nearly a 10% increase from the fourth-quarter report.

Despite the positive news from the contractors polled above, the index remains approximately 12 points below its score from the first quarter of 2020, which was pre-pandemic  Currently, contractors’ top concerns, which are of no surprise, are related to the ongoing effects of the COVID-19 virus.  Those concerns include project shutdowns and worker safety to highlight a few.  Another challenge contractors are going to be faced will be finding skilled workers, material shortages and cost fluctuations, with the rising cost of lumber being of the utmost concern.

A few additional findings from the index show that tariff and trade concerns are increasing with most contractors saying steel and aluminum tariffs will have a significant impact on their business over the next handful of years.  Additionally, more contractors are planning to increase their spending on tools and equipment, however not nearly to the levels before the pandemic.  One final and interesting finding from the most recent Index is that nearly 80% of contractors are still experiencing delays that are directly related to COVID-19.  Clearly, the impact of the COVID-19 pandemic will continue to be felt in the year ahead.

If you have any questions don’t hesitate to contact us or check out the Schneider Downs Construction Industry Group.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
LIFO Liquidation Relief for Automotive Dealers
Will We See Charitable Gift Breaks Post 2021?
Pandemic Costing American Women Now and for 20 Years
Timber! The Rise and (Hopeful) Fall of Lumber Prices
Heavy Equipment Dealers Increase Profitability with GPS Tracking
ASU 2021-03 – Private Company and Not-For-Profit Updates to Evaluating Goodwill Impairment Triggering Events
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222

[email protected]
p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215

[email protected]
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102

[email protected]

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.