Well Fargo Equipment Finance recently revealed the results of our 2019 Construction Industry Forecast
CRUM: For over 40 years, Wells Fargo Equipment Finance has surveyed construction industry to seek opinions from executives about the coming year. The primary metric for the forecast is the optimism quotient. For scale, anything over 100 is considered highly optimistic. Anything from 75 to 99 is considered moderately optimistic. And anything below 75 is considered pessimistic.
CRUM: This year, 441 executives from 48 states responded to the survey which was taken from November to mid to late December of 2018. Ad a majority of executives reported that they have been in the industry for five years or more.
CRUM: So for this year, the optimism quotient was a very strong 122. So in 2018 we recorded a 20 year high optimism quotient of 133. This year’s optimism quotient at 122 while slightly lower is still highly optimistic.
CRUM: In addition to the optimism quotient, we talked about expectations for equipment sales and purchases, trends in the rental market, as well as trying to identify any concerns that might be out there form an industry perspective. VOICE-OVER: One of the key things we found is that 96 percent of contractors who responded indicated that they will buy new or used equipment in 2019. Specifically, 76% of them said that they will maintain or increase their level of activity and purchases in 2019 verse 18 and 75 percent said that they will do the same thing for used…meaning that they 75 percent will maintain or increase their level of used equipment purchases.
CRUM: Another thing we learned in this year’s survey is that 92% of contractors who rent equipment plan to do so in 2019 at the same or increased levels verses 2018. And the number 1 reason contractors are renting equipment is flexibility. 46 percent of contractors who responded cited this as their number one reason for renting equipment.
CRUM: For 2019 the number one concern of the industry is the ability to identify and hire qualified workers. The industry put this ahead of the impact of tariffs, interest rates and equipment costs.
CRUM: And indeed 47 percent of contractors who responded cited this as their top cost concern.
CRUM: We invite you to go to wellsfargo.com back slash construction forecast where you can download the full report… …as well as view a feature-length webcast where we discuss the findings in detail.