Nonresidential Contractors See Revenue, Profit Grow
Nonresidential construction contractors were confident that sales and profits are in growth mode, according to the Association Builders and Contractors’ (ABC) Construction Confidence Index. Index readings for the first half of the year had sales expectations growing from 67.3 to 69.4 and profit margin expectations moving from 61.0 up to 62.9 – approaching the highest reading in the index’s 3-year history.
The index measures forward-looking construction industry expectations. Numbers above 50 reflect growth. Along with sales and profit margin, contractors provide staffing level intentions. That number was about flat - 66.2 vs. the previous quarter’s 66.3 – but still indicates that rate of new hires is “brisk.”
In a news release from the organization, chief economist Anirban Basu noted that the recovery is in its seventh year, but there’s reason for concern with jittery financial markets, the global economic slow-down and confusing Fed policy. “Though the U.S. economy refuses to boom, the pace of growth has been enough to allow the average contractor to secure more work at higher margins.”
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