AGC of Utah
“Contractors remain upbeat about the available dollar values of projects to bid on in 2023,” Gilbert says. “There is obviously a lot of optimism within the infrastructure segments of the industry due to the federal IIAJ funding available to states. However, they are slightly less optimistic about many private-sector segments than they were last year. Higher interest rates [and] evolving work and shopping patterns are impacting the outlook for office, retail, hospitality and multifamily residential,” he adds.
“Rumors are that we are headed for a recession, and interest rates are going to continue to go up, which only adds to further uncertainty for contractors about the viability of projects and whether owners are going to continue to move forward and implement projects from design through to completion,” he says.
“However, the strength of the Utah economy is a tremendous bonus to contractors doing work in the state, and there are a number of great building and highway projects that continue to hit our market year after year to keep the commercial construction market moving,” Gilbert says.