This Industry Outlook is a portion of the 2018 Arizona CFO Spotlight Survey Report
The 2018 Arizona CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the construction segment here in terms of growth, risk factors, strengths, and trends.
Concern over border security/immigration policy has finally hit a nerve, with 50% citing a "somewhat" or "large" expected impact on business.In addition to maintaining internal controls and providing proactive data to owners, CFOs note ongoing investment in cybersecurity initiatives, including software upgrades and hiring outside consultants. Health insurance is still the biggest benefit offered by construction companies, and 50% pass costs on to employees as their method of reducing costs. In turn, they have increased the flexibility of their schedules and invested in apprenticeship programs while maintaining competitive compensation. Overall, optimism is up in this industry if they can maintain staffing and grow margins over the challenges of labor, regulatory and procurement costs. Loosening of access to credit in the banking industry was suggested, but most companies cite healthy reserves and strong banking relationships.
"Immigration policy can cause labor shortages here. Not many people want to do roofing or masonry; we have decades of high-quality people that have been available."
Average Number of Employees
Revenue in 2018
- 36% Will increase significantly 36%
- 36% Will increase slightly 36%
Top Areas of Focus
- Attracting and retaining talent
- Attracting new business
- Maintaining quality
- Strong internal controls and security
57% very optimistic
Access to Cash?
not a problem
50/50 concerned/ not concerned
not a problem