Iowa Construction Businesses Plan to Expand

Date: February 02, 2016

Most also expect cost of healthcare to rise.

Iowa Construction Businesses Plan to Expand

Iowa construction firms could be going on a spending spree this year, according to a new survey.

Among the Iowa firms surveyed by the Associated General Contractors of America (AGC), 40 percent were small businesses with fewer than 50 employees. Sixty-two percent of the respondents said they plan to hire more workers, 43 percent will invest more in training and development, 30 percent will broaden their geographic area, and 88 expect the cost of providing healthcare insurance to increase in 2016.

“Many contractors are also making sure their investments are strategic,” explained the national survey, which included more than 1,500 respondents. Nationally, for example, 41 percent of firms expect to invest more in information technology in 2016. In Iowa, 27 percent plan to invest more in that category.

No business plan is without its roadblocks, of course. A particular challenge facing construction firms in Iowa and other states is finding qualified workers. Even though 62 percent of Iowa firms plan to increase their headcount this year, 81 percent predict it will be just as hard or even harder to find qualified workers than it was in 2015.

Worker shortage is the biggest concern for 58 percent of Iowa construction businesses, tied with growing federal regulations and followed by worker quality, increased competition and rising materials costs, according to the survey.

One area that is improving across the board is credit and lending: 18 percent of Iowa firms had an easier time acquiring bank loans than a year ago.

“Credit and lending conditions continue to improve for construction firms and remain stable for developers,” the national survey reported.

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy