Alabama AGC

The outlook for the construction industry is mixed for 2012, as firms must balance growing demand for certain private sector market segments with continued weakness in key sectors, the near end of the stimulus and declining overall demand for public sector construction.  Indeed, according to an analysis of survey responses from more than 1,300 construction firms conducted by the Associated General Contractors of America and Computer Guidance, the industry is not likely to experience a recovery until at least 2013 despite some growing positive trends.

With the power, hospital and higher education sectors leading the way, demand for construction should continue to stabilize during 2012.  Indeed, a clear majority of firms expect the dollar volume of projects they compete for to either grow or remain stable in every market segment identified in the survey.  However, the stability masks two divergent trends – growing demand for private sector construction activity offset by declining public sector demand.

Significantly more firms (32 percent) plan to add staff this year than plan to lay off staff (9 percent).  This is a marked improvement from 2011 when 37 percent of firms reported cutting staff while only 34 percent added employees.  Despite the fact more firms plan to hire staff this year, those additions are likely to be modest at best. 

Tight credit conditions do not appear to be affecting most firms’ ability to attract new credit.  Yet cautious lending practices are having what appears to be a significant impact on the construction market. 

As the commercial construction industry remains mired in a downturn that began in earnest in 2008, they continue to evolve their equipment strategies.  Instead of purchasing new equipment, many firms report leasing.

Construction firms continue to be squeezed between rising materials costs and stagnant earnings for work provided in 2011, a trend that is likely to continue this year.

To see the complete report, including in-depth analysis and graphics, go to the “Members Only” area of the Alabama AGC website under the resource tab. 

The Alabama AGC has redesigned our website to create a more useful tool for our members. The website has a full directory of Alabama AGC membership on the front as well as crucial information – such as how to follow Alabama’s new immigration law, Southern Lien Laws, current resumes and safety videos from the AGC library – under the “Members Only” area.

               While the big departure from our previous site is that much information contained in alagc.org will be available only to members, much still is available to the public, including a calendar of events, listings of officers and directors, CompTrustAGC information, OSHA Quick Cards and industry news. The website also contains links to pictures of Alabama AGC events that are available for members to download and save.

               “No website is ever complete because it must change with our members’ needs,” said Bill Caton, Alabama AGC director of special projects. “But we believe that members will find this version particularly useful. The ‘Members Only’ area will be topical and pertinent, containing information to help members make business decisions. And the public portion of the site will help promote our industry and offer owners an opportunity to find contractors in an easily searchable format.

               “We at the Alabama AGC ask you to please look at the site and make suggestions. Input is critical to our success in better serving you.”

               If you do not have a login for the “Members Only” area, please contact Anna Brown at annab@alagc.org.