Grassi Releases 2024 Construction and Architecture & Engineering Survey Results
NEW YORK (June 12, 2024) – Grassi, a leading provider of advisory, tax and accounting services, today announced the 2024 Construction and Architecture & Engineering (A&E) Industry Conditions and Outlook survey results. The comprehensive study of industry executives shows industry leaders are optimistic, with 56% indicating they expect revenue to increase in 2024. Despite some challenges, the industry is resilient by adapting its strategies and seeking new solutions.
Grassi surveyed 248 general contractors, subcontractors, and A&E firm executives in February and March 2024 to assess the state of the industry, identify trends, and gather key industry opportunities and challenges for 2024.
Key findings from the report include:
- 56% of survey respondents expect revenue growth in 2024. General contractors are the most optimistic, with 63% expecting revenue growth, followed by 51% of subcontractors and 49% of A&E firms.
- 81% of general contractors, 79% of subcontractors and 88% of A&E firms said overhead costs have increased in the last 12 months, with more than a third citing double-digit cost increases.
- 72% predict their backlog will be the same or lower in the next 12 months (81% of A&E firms, 75% of subcontractors and 64% of general contractors holding that opinion).
- Labor issues remain prevalent, with 56% of respondents declaring it the biggest threat to their business.
- Companies across the industry use various strategies to cope with supply chain price volatility, including modifying pricing practices and estimates for future bids, using purchase agreements to lock in prices, diversifying suppliers and raising fees.
- Most companies plan to invest in technology, with project management/collaboration software at the top of most companies’ lists.
- 39% of general contractors, 44% of subcontractors, and 56% of A&E firms plan to use some form of artificial intelligence in 2024.
“Our survey reveals an industry that is optimistic for revenue growth with the realities of rising costs, workforce challenges, and evolving market demands,” said Carl Oliveri, Partner and Construction Practice Leader. “Adaptability and strategic investments in technology, innovation and diversification demonstrate a commitment from the sector to navigate these hurdles and seize growth opportunities in this dynamic and changing landscape.”
A complete copy of the survey report is available for download here.
Please contact us here to speak with a Grassi Construction / A&E professional.
