Wells Fargo Reveals Top 2023 Reflections of the Construction Industry
February 16 2023 - 1:00PM
Business Wire
Wells Fargo’s 47th annual 2023 Construction Industry Forecast
shows cautious optimism among nonresidential contractors and
distributors
Wells Fargo released its 2023 Construction Industry Forecast, a
survey designed to gather insights on sentiment and current
business conditions in the construction industry. This year’s
survey indicates a level of cautious optimism prevailing among
nonresidential contractors and distributors. Most notably,
respondents shared several top concerns, including the availability
of skilled workers, rising interest rates, economic uncertainty,
and supply chain disruptions. Despite the economic challenges of
2022, however, the non-residential construction industry largely
maintains a hopeful long-term outlook for 2023.
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“Adapting to ongoing economic uncertainty and impacts of
increasing interest rates are two of the primary concerns for
construction executives,” said James Heron, national sales manager
for the Wells Fargo Equipment Finance Construction Group which
sponsored the report for its 47th year. “Despite a number of market
variables, the level of optimism reflected in the 2023 forecast
survey confirms industry leaders maintain a deep-seated belief in
economic recovery.”
Key findings in the 2023 Construction Industry Forecast
include:
Cautious optimism remains the dominant sentiment within
non-residential construction
- The economic environment has caused a divide in perspective and
expectation among executives. Those who continue to feel that
non-residential construction will remain at current levels also
expect activity will begin to increase in 2024 or later.
- However, those who do not believe non-residential construction
will remain at current levels foresee that the industry will see a
decrease in 2023.
Top risks, financial concerns, and opportunities
- Executives have four areas of concern: availability of skilled
workers, economic uncertainty, rising interest rates and supply
chain disruptions.
- Inflation has impacted more than 82% of surveyed businesses,
while increased material cost has impacted profitability for more
than 59% of businesses surveyed.
Equipment acquisition
- Over 50% of contractors expect to rent the same amount of heavy
construction equipment in 2023; however, equipment purchases will
be contingent on a stronger backlog of jobs and lower costs.
- Distributors report continuing to rent the same or more
equipment now than a year ago and continue to utilize 70% of their
fleet.
More about the Wells Fargo Construction Industry
Forecast
Wells Fargo’s 2023 Construction Industry Forecast results
represent the 47th year that Wells Fargo Equipment Finance has
surveyed construction industry executives to gather insight into
current business conditions and trends and to measure sentiment.
Responses came from hundreds of industry executives in 46 U.S.
states. Nearly all of the respondents report that they have been in
the industry five years or more. To learn more, download the
complete Construction Forecast Survey.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial
services company that has approximately $1.9 trillion in assets,
proudly serves one in three U.S. households and more than 10% of
small businesses in the U.S., and is a leading middle market
banking provider in the U.S. We provide a diversified set of
banking, investment and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth &
Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
low-carbon economy.
News, insights, and perspectives from Wells Fargo are also
available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
Twitter: @WellsFargo
News Release Category: WF-ERS
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Media Trisha Schultz, 424-268-6202
trisha.schultz@wellsfargo.com
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