Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Advertisement

Header Primary Menu

  • Issues
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Home News Regions Northern Virginia Outlook for construction industry improves in 2013

Outlook for construction industry improves in 2013

Published January 14, 2013 by Paula C. Squires

More construction firms are planning to add staff than cut staff this year, and demand for some private sector construction projects should increase, according to survey results released Monday by the Associated General Contractors of America and Computer Guidance Corp.

The survey provides a generally optimistic outlook for the year even as firms worry about rising costs and declining public sector demand for construction.
“While the outlook for the construction industry appears to be heading in the right direction for 2013, many firms are still grappling with significant economic headwinds,” Stephen E. Sandherr, the association’s CEO, said in a statement. “With luck and a lot of work, the hard-hit construction industry should be larger, healthier, more technologically savvy and more profitable by the end of 2013 than it is today.”

Sandherr noted that significantly more firms are planning to add staff this year, 31 percent of those surveyed; compared to the number of firms expecting to make layoffs, 9 percent.

In Virginia, 33 percent of surveyed companies said they play to add staff, while another 33 percent said “don’t know.”  If they do add staff, the companies said it would be five or fewer employees.

Compared to 2012, contractors here expect the available dollar volume of projects to be higher in 2013 in the power and hospital and higher education industries and in K-12 school construction.
This response tracks with the survey’s national results. According to Sandherr, firms are most optimistic about the outlook for hospital and higher education construction. He noted that 36 percent of firms predict the amount of money spent on those projects will grow in 2013 while 39 percent of firms expect the market will remain stable compared to last year. Contractors also were optimistic about the markets for power construction, but had lower expectations for manufacturing, private office and retail, warehouse and lodging construction.

Meanwhile, contractors expect demand for many types of public construction to decline in 2013.
A significant – but smaller than last year – number of contractors also report that customers’ projects have been delayed or cancelled because of tight credit conditions. Forty percent of responding firms report that tighter lending conditions have forced their customers to delay or cancel construction projects. Only 3 percent of firms reported having an easier time getting credit while 41 percent report no change in credit conditions.

“Unfortunately, there are almost as many causes for concern as there are signs of optimism,” said Ken Simonson, the association’s chief economist. “Demand for public buildings is set to decline, manufacturing work appears to be slackening, materials prices and health care costs continue to rise and many firms are reluctant to make major investments in new equipment.”

The outlook, co-sponsored by the Arlington-based trade association, was based on survey results from more than 1,300 construction firms from 49 states, the District of Columbia and Puerto Rico.

Related Stories

Virginia Business logo

Calkain Cos. continues to make name for itself in net-leasing niche

Virginia Business logo

New senior housing project coming to Fairfax County

Howard Hughes Corp. buys Macy’s Landmark Mall store in Alexandria

Trending

Dollar Tree CEO resigning; former Dollar General CEO to replace him

Norfolk’s MacArthur Center mall listed for sale

Framatome CEO retiring; CFO to be promoted

Manassas company to develop short takeoff, landing aircraft for Air Force

Rocket Lab launches first mission from U.S. soil

Sponsored Stories

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Advertisement

Advertisement

Trending

Dollar Tree CEO resigning; former Dollar General CEO to replace him

Norfolk’s MacArthur Center mall listed for sale

Framatome CEO retiring; CFO to be promoted

Manassas company to develop short takeoff, landing aircraft for Air Force

Rocket Lab launches first mission from U.S. soil

Sponsored Stories

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2023 Virginia Business. All rights reserved.

Site Maintained by TechArk