Yearly Decreases, Quarterly Gains: Highlights from the Q2 2022 Construction Metrics Index
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Q2 2022
Two and a half years after the global pandemic put the brakes on construction and every other industry, Trimble Viewpoint’s Q2 2022 Quarterly Metrics Index shows where the construction industry is rebounding, where problems persist, and the story behind the latest construction industry numbers.
The new Q2 2022 Metrics Index reveals substantial declines across the board in the second quarter of the year, when compared to the same period of 2021: New projects were down 33% from the same period the previous year, contract values were down 37%, and cash flow decreased 51%, and even hiring decreased 3% year over year (YoY).
Hiring trends, contract values & more
Construction Hiring Increased in Q2 2022
At first glance, the year-over-year data might not demonstrate much to be optimistic about—but there is more to the story. For example, a closer look at the quarter-over-quarter data reveals a 20% increase in construction hiring from Q1 to Q2 2022.
The Construction Metrics Index breaks down hiring geographically, which reveals large regional differences. Hiring increased in the Midwest by 56% quarter over quarter (QoQ), while the Plains only saw 10% more hiring, for example.
Both general contractors and heavy highway/civil contractors saw quarterly hiring gains, as did the Plains and the Pacific West. This may indicate that contractors are ramping up their workforces anticipating economic conditions may stabilize in the last half of the year, and into 2023.
Less Construction Cash Flow…More Projects?
An across-the-board decrease in cash flow—down 50% year over year overall— is another highlight from the Q2 2022 Quarterly Construction Metrics Index. But the decrease is not necessarily a bad thing. The overall decrease in cash flow could mean that contractors are spending their money on projects, a sign of their confidence and perhaps another indication of anticipated market stabilization in the coming months.
As with hiring, construction cash flow varied a lot between verticals. Specialty Subs had 154% more cashflow, while Heavy Highway and Civil were down 61% year over year.
For more insights and information to benchmark your own construction organization against the industry, download a free copy of the Q2 2022 Quarterly Construction Metrics Index today.
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