To take the pulse of the construction industry, Grassi and Co. hired an independent survey group to take a three-month survey of the industry in New York, and the results are in.
“The topics covered include labor conditions, the regulatory environment, safety compliance, technology, cybersecurity, and insurance – all issues that impact the profitability of the construction contractor’s business. Reflecting the responses of over 100 industry insiders, over 82% of the respondents were either general contractors (43%) or sub- contractors (39%).”
Unsurprisingly, the issue that was rated as most important to contractors was the lack of skilled labor, followed by issues with regulatory oversight. Other issues that were of importance were the influence of unions, which indicated that non-union activity was increasing in residential projects, but remained steady in commercial construction. Over 87% of respondents said they expected to see these union issues to remain steady. “This shift in share, between union and non-union contractors has broad implications for the competitive landscape,” said Carl Oliveri, construction practice leader at Grassi & Co.
Another challenge was the issue of MWBE, or Minority/Women-Owned-Business regulations. Over half the survey respondents (54%) said they found the regulations difficult or very difficult to deal with. A third of respondents said that MWBE was not a significant factor in their business.
Perhaps the biggest complaint was with the New York state’s compliance regulations, where 42% said that the impact to profitability was very large, 46% said it was negative, while only 12% said it had little to no effect.
“NY & NYC regulations are becoming unbearable…I think a sensible tradeoff for having to provide so much OSHA training is that the contractors should be able to hold employees who have height-related injuries partially responsible for their negligence,” was just one of the many comments received.
To read more about the survey results, click here.