ROSEVILLE, CA, MARCH 16, 2015: GALLINA LLP’s released the findings of its “2015 Construction Outlook & Survey Results” focused primarily on the State of Utah along with national benchmarks. The survey respondents vary from general and subcontractors in a variety of different specialties from utilities to steel fabrication.
CPA and GALLINA Salt Lake City, Utah Partner, Steve Scoggan, states “I think this year’s survey demonstrates that the Utah construction climate is finally thawing for most contractors from the challenges of recent years. Most construction company business owners may already know this, but hopefully the report offers some ideas and strategies that will help you in 2015 and beyond.”
With notable highlights including the lowest unemployment rate seen since the financial crisis, three million new jobs created, and a modest GDP increase, the economy is predicted to continue in a positive trend. More specifically, the report highlights a 9% increase in the construction industry on a national level with increased contributed to the residential, commercial, and institutional sectors.
Byron DeStigter, CPA and Senior Manager at GALLINA LLP’s Salt Lake City, Utah office shares “The outlook for 2015 may be similar to last year; however, slightly more optimistic as we anticipate more modest gains.”
In the State of Utah, the economy increased 3.0% over 2013 with a total of 38,580 jobs added in 2014. Overall, 48% of respondent’s share that their business is thriving and up by 23% in comparison to the prior year. Despite the positive increases, the severe shortage of qualified labor presents the biggest cause for concern to most business owners. The report discusses the issue in depth with a look at different generations in the workforce. Furthermore, 62% of respondents lost qualified employees to competitors or other industries in 2014 despite a large percentage of employers providing wage rate increases.
“As the economy improves in more sectors, construction demand will grow too. Successful contractors need to monitor labor shortages, deal with potential job delays, likely cost increases for labor, and identify the current and future job needs seeking out the most qualified personnel” said Joe Leverich, CPA and GALLINA partner based out of the Salt Lake City, Utah office. “This challenge will create continual need for seeking, training and developing your construction team.”
Also noted is a brief synopsis on the current status of the Affordable Care Act and how it affects your business. The transition relief for the Employer Shared Responsibility Provisions are highlighted along with reporting requirements and updates on the current changes in progress.
To view the full report, please visit click here for a direct link.