In comments about the market’s most pressing challenges, Top 600 Specialty Contractors are widely optimistic that the worst of pandemic-induced delays are done—buttressed by another year of double-digit revenue growth for listed firms. But the market still suffers from major challenges as firms look to cultivate limited labor resources and manage rising project costs.

The transition from COVID-19-era construction demand to a post-pandemic marketplace with high inflation has been a “tale of two cities” for many subcontractors, says Joel Phelps, chief operating officer at subcontractor Reflection Window + Wall.