Revenue Sluggish as Tight Workforce Constrains Activity
Although the Midwest construction industry gained momentum in 2014-advancing prospects for designers and contractors alike-many of the region's specialty contractors failed to keep pace, circumstances some economists conjecture may have been due to a lack of sufficient workers to bid on larger projects.
"In labor-constrained environments, firms with greater financial flexibility are using it to train and retain labor, leaving competing enterprises with fewer workers and a corresponding revenue slump," says Anirban Basu, chief economist with Washington, D.C.-based Associated Builders and Contractors.