Contractors are looking into the past to prepare for the future and, according to the latest Commercial Construction Index (CCI), the future is positive. USG Corp. and the U.S. Chamber of Commerce recently released the second-quarter CCI, where contractors responded with more optimism than the previous quarter.
On June 19, Construction Dive reported an overall index score of 74 that was attributed to a rise in project backlogs and contractors' 12-month outlook, the latter of which 50% believe will "provide the necessary business opportunities." However, expected revenue fell once again in the second quarter.
"While fewer contractors are anticipating increases in revenue during the next 12 months, almost none expect it to decrease," Construction Drive stated. "Also, 30% of respondents expect an increase in profit margins, which could be driven partially by an environment of reduced competition as companies struggle to manage workloads."
A limited labor force continues to plague contractors, 95% of whom said they experienced "some level of difficulty" finding the right workers. Additional concerns included rising material costs and tariffs.
—Andrew Michaels, editorial associate