Some concerns, but 2022 promises to be solid for construction
Kentucky construction companies have been very busy for the past two years, with some even doubling in size during that time. The federal infrastructure investment initiative is expected to add to the already strong demand for construction work. Still, there are issues to be managed: Supply chain crimps exacerbate demand-driven inflation that has resulted in cost overruns on some projects, which in turn put tough decisions in front of customers. . However, an already strong business environment in Kentucky is further bolstered by the vehicle manufacturing industry, which is investing to meet the market’s desire for electric cars and trucks. Construction companies are optimistic in 2022.
âBowling Green-based Murphy Construction Group (Scott, Murphy & Daniel; Scott & Murphy Inc .; and Hartz Contracting of Owensboro) achieved record revenues in 2021 and are cautiously optimistic. 2022 will be another positive year. The outlook for 2022 is a continuation of solid activity in the construction of buildings. Economic development creates growth and investment in construction. Growth related to electric vehicles will add another dimension to companies related to the automotive industry. Our Bridges and Highways industry is seeking Kentucky to take advantage of the Infrastructure Investment and Jobs Act to escalate the desperate need to maintain and expand our Kentucky highway system after several years of minimal work opportunities in many areas of State. We have learned how to deal with COVID and minimize its effects on our business / production through improved human resource management and a team of professionals – nearly two-thirds of whom have been with the company for 15-35 years – but Workforce issues pose a challenge to our continued strong growth. Murphy Group plans a normal capital investment in 2022 to replace and update our equipment. We continue to invest in new technologies to be more efficient and less dependent on labor.
–Mike murphy CEO, The Murphy Construction Group (Scott, Murphy and Daniel)
âI expect the Kentucky economy to be strong in 2022. Investment in Kentucky has gained a lot of momentum, but it could slow depending on inflation pressures in the short and long term. We focus on the laser to help our customers overcome these challenges and opportunities.
We see construction opportunities in the industry and higher education market segments as well as renovations underway for healthcare clients, all of which align with industry trends. at national scale. Customers today are looking for project partners who can manage risk appropriately, who provide solutions to supply chain issues that don’t impact budget and schedule, and who do demonstrating leadership in diversity, equity and inclusion. At Messer, we don’t anticipate any significant changes in capital spending, and our long-standing commitment to supporting community-based nonprofits has not wavered throughout the pandemic. On the personnel front, we are actively expanding our team (engineers, carpenters, workers, middle managers) to meet our growing portfolio of work.
–John megibben Vice-President, Messer Construction Co, Louisville region
âWith a large order book by 2022, The Walker Co. is optimistic but attentive to the challenges that lie ahead. These challenges are far-reaching, creating many headwinds for the construction industry: inflation and labor constraints. Thanks to the stimulus funds, many customers have benefited from additional capital for projects, but have experienced significant cost increases due to inflation and supply chain disruptions. This resulted in projects going over budget and clients had to make tough decisions. However, we have been successful in keeping our clients informed while providing solutions to help mitigate inflation risks. In 2022, inflation will continue to be a driver. Despite the challenges of the pandemic, The Walker Co. has more than doubled in size over the past two years. However, finding qualified employees is a challenge, as it is in many industries. All industries will need to find ways to engage more employees in the workforce. “
–Jake schirmer CEO, The Walker Co.
âFor Long Construction Management, 2021 has been a year of rebuilding after seeing half of our 2020 backlog wiped out due to the COVID-19 pandemic. We have seen the opportunities slowly increase throughout 2021 in the commercial and industrial construction market for design-build projects. Based on what we are currently seeing in the market, we predict that the opportunities for commercial and industrial design-build projects will continue to increase through 2022. By monitoring our overheads very closely, we have been able to get through. 2021 without layoffs and we expect that we will be in a slow but steady growth pattern throughout 2022. “
–Long lime Owner, Long Construction Management
âLooking ahead to 2022, we are cautiously optimistic that the Kentucky and US economies will recover despite supply chain, labor and inflation issues. Within the construction industry, we see continued growth in industrial and distribution buildings in our core markets of northern Kentucky / Cincinnati, Louisville, Columbus and Indianapolis. As people continue to shop online and physical stores increasingly become showrooms for items, the need for large-scale distribution centers continues to increase. While supply chain issues have impacted our ability to complete projects, we are actively recruiting seasoned construction and account managers for our construction and building management services as they arise. continue to grow.
–Paul Hemmer President, Paul Hemmer Co.
âWe believe that economic growth for 2022 will be in the order of 3.5 to 4%. Currently, the challenges of inflation, the supply chain and the pandemic will most likely keep that number below or around 4%. We are seeing the third and fourth quarters accelerate at a faster pace than the first two quarters. The construction industry is strong and most companies are reporting an average order backlog through 2022. We have a very diverse portfolio of incredible clients and we are well positioned for continued and expected growth in 2022 and beyond. In 2021, we have invested heavily in talent and technology. This proactive investment has allowed us to continue to serve our partners at a cutting edge level and seize new opportunities as we continue to grow and expand our brand.
–Steve mccarty Senior Project Manager, Miranda Construction
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