Prairie Capital Advisors, Inc. (“Prairie”), a leading middle-market investment bank, released its Construction Industry Survey today. Prairie works with owners of private construction businesses across the country, providing advisory services to support their growth and ownership transition strategies. Prairie works with over 180 construction clients. Prairie’s goal in surveying construction companies is to gather insightful feedback and to gain a better understanding of industry benchmarks, trends and other meaningful market factors impacting them.
Selected Findings
- 75.6% of survey respondents report that they experienced labor shortages in 2022.
- 46.7% of companies surveyed said that within the current environment, their ESOP has not been impacted.
- 100.0% of survey respondents reported at least some increase in employee wages in 2022.
- 84.4% of companies surveyed stated that they’re an S-Corp, compared to a C-Corp.
- 64.4% of survey respondents said that they anticipate a recession in 2023.
- 88.9% of survey respondents reported that they plan making investments in 2023, key investments being additional employees, equipment, training and technology.
“As industry thought leaders who provide expertise for construction companies throughout the United States, we at Prairie are excited to share insightful industry trends and results from our 3rd Annual Construction Industry Survey,” commented Franco Silva, Director at Prairie. Rocky Fiore, Managing Director and COO, added, “It is amazing to see how well so many of our construction company clients navigated difficult market conditions in 2022 – especially as it pertains to rising costs, supply chain disruptions and labor shortages. This survey allows our clients to compare their own experiences with those of their peers and gain a better understanding of where things may be headed in the future.”
About Prairie’s ESOP Construction Industry Survey
Respondents to the survey were of varying demographics, including revenue size, services provided and end markets. The report discusses how the industry performed in 2022, the influence of the market on ESOPs, some specific effects of supply chain issues on Prairie clients and the outlook for 2023.
Prairie offers investment banking, ESOP advisory, valuations and opinions and financial reporting valuations to support the growth and ownership transition strategies of middle-market companies. Headquartered in Oakbrook Terrace, Illinois, the company is a leading advisor to closely-held companies nationwide. In 2022, Prairie was named ESOP Investment Bank of the Year by M&A Atlas. For more information, visit www.prairiecap.com.