AGC survey indicates NC market
optimism, tempered by challenges
in recruiting skilled workers
North Carolina Construction News staff writer
North Carolina contractors are feeling modestly opti-
mistic about their prospects for 2018, but many are
struggling to recruit enough skilled workers, according
to a report from the Associated General Contractors of
America (AGGA).
“Expecting Growth to Continue: The 2018 Construc-
tion Industry Hiring and Business Outlook,” shows that
75 percent of construction firms nationwide plan to ex-
pand their payrolls in 2018, based on the feeling that
economic conditions will remain strong as tax rates and
regulatory burdens fall.
Nationwide, “construction firms appear to be very
optimistic about 2018 as they expect demand for all
types of construction services to continue to expand,”
AGCA CEO Stephen E. Sandherr, the association’s CEO,
said in a statement. “This optimism is likely based on
current economic conditions, an increasingly business-
friendly regulatory environment and expectations that
the Trump administration will boost infrastructure in-
vestments.” The survey indicates that in North Carolina, contrac-
tors overall anticipate a relatively stable business envi-
ronment this year, with 48 percent expecting growth,
eight percent expecting a decline, and 44 percent antici-
pating things will be about the same as the previous
year. The most optimistic sector for growth is power,
while there is an expectation of a decline in the multi-
family residential sector.
Significantly, the majority of contractors anticipate in-
creasing their headcount; with 33 percent expecting to
add one to 10 employees, 22 percent increasing by 11-
25 and 19 percent anticipating increasing headcount by
more than 25.
The majority of contractors (74 percent) say they are
having a hard time filling both salaried and craft worker
positions, while 74 percent expect the trend to continue
through the year.
The report shows that 63 percent of the construction
firms that were polled increased their base pay in 2017
to help recruit and retain workers, while 33 percent in-
creased contributions/improved employee benefits and
26 percent provided incentives or bonuses.
The North Carolina Construction News — Winter 2018 — 3