Now that 2022 has come to a close, the construction and surety marketplace continues to remain active. The market has seen an up-tick in investment in residential, commercial, data storage and large distribution fulfillment center production.
In 2022, contractors struggled to keep up with labor pricing pressures, and general materials input that was necessary to perform on contracts. Despite this, production levels were up, margins were relatively favorable, and financial results should demonstrate positive net results.
2023 will likely continue to be a strong year for the construction market as backlogs are generally very strong and middle market contractors have operating plans in place to address fundamental issues, such as employee retention, material price fluctuations, and balance sheet improvement from COVID relief programs, i.e. Payroll Protection Plan and Employee Retention Credit programs.
Our presentation will provide insights on what surety professionals will likely see from their contractor clients 2022 financial reporting and discuss possible hot spots that will need to be addressed. And as we move further into 2023, we will also discuss, and attempt to predict, the world of construction and our economy during a rising interest rate environment, recession fears, geopolitical concerns, and a generally unstable inflationary time.