Bennett Thrasher and Kennesaw State University (KSU) released their third annual Georgia Construction Outlook Survey last week, and I can’t say we are surprised by the results. The survey was led by Scott Hazy and Tom Jollay, co-leaders of Bennett Thrasher’s construction practice, along with Khalid Siddiqi, chair of KSU Department of Construction Management. They got responses back from 149 Georgia-based privately-held construction companies, probably including a number of eVolve MEP Software clients.
“Recruiting and retaining qualified individuals remains the top challenge for the construction industry,” said Siddiqi. “However, it is encouraging to see that the number of organizations focusing on innovation and technology continue to rise as we address this significant issue.”
On behalf of eVolve MEP Software, we have posted multiple blogs and articles highlighting the ongoing labor shortage issue in our industry, and it was encouraging to see this study where the industry is focusing on innovation and technology as one way to deal with this issue. eVolve MEP was built to help electrical and mechanical contractors save time while making the move to Revit and pre-fabrication. Our clients know they have to move forward into Revit, and we offer them training and consulting to move their companies forward before they are passed by more tech savvy competitors.
Another interesting finding that surprised us was that respondents reported an average gross profit margin of only 11%. This seems almost 50% below the national average of 20%. What do you think the reasons are for this margin pressure? Is it rising material costs? Labor shortages? Have you looked at pre-fabrication and the move to Revit? Let us know your thoughts. Reach out to give us some of your ideas on how to move the margin meter higher and how you are attracting new talent. We look forward to serving you and learning more about your company needs.