Showing Positive Gains: The Q2 2024 Quarterly Construction Metrics Index

Each quarter, we pull and aggregate anonymized, real-time data from 1,000+ Trimble customers who entered data into our Viewpoint Vista or Viewpoint Spectrum ERP systems and compare it to the same quarter the year prior. We pull data related to project starts, contract values, net hiring and cash flows since those metrics provide a good snapshot of the overall health of the construction industry. Together, these stats collectively form each Quarterly Construction Metrics Index.

The second quarter of 2024 saw positive gains across almost all of the metrics Trimble routinely tracks as part of the Metrics Index, perhaps indicating economic confidence despite high interest rates and an historic election year. Similar increases were seen when we surveyed The Network, Trimble Viewpoint’s customer group, about what they experienced in Q2 2024.

A snapshot of these metrics are below, alongside anecdotal feedback from the Network to help you make better sense of the current construction landscape.

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Projects Starts Increased

Data pulled from the Q2 Metrics Index reflected that new project starts increased by 14.5% in Q2 2024 as compared to the same time period in 2023. The increase in project starts was seen across all three verticals, with general contractors seeing a 16% increase, faring only slightly better than heavy highway and civil contractors (14.5% increase) and specialty contractors (14% increase), which include all trade contractors such as electrical, mechanical, concrete, drywall, and landscaping

When The Network was asked about their Q2 project starts, 26% said their projects had increased, 49% said their projects had stayed the same, while only 13% said they had declined.

Some of their feedback included: 

• “Our backlog was the highest ever.”
• “Most of the increase came from data center construction.”
• “(Projects) didn’t really get started until after April waiting for the weather to warm up.”
• “Saw slowdowns as projects were being pushed, with owners holding onto funding until interest rates drop.”

Contract Values Were Up

Contract values similarly increased 7.8% across the industry according to data pulled from the Q2 2024 Metrics Index, which is typically seen when project starts increase. Specialty contractors experienced an 8.6% increase, general contractors increased by 7.9% and heavy highway/civil contractors increased by 6.4%.

For Network respondents, 52% said their contract values increased, 43% said they stayed the same, and 5% said they decreased. When asked why, they said:

• “Jobs are the same, but everything is more expensive.”
• “Prices on materials are still increasing.”
• “We’re building larger projects.”
• “Prices of equipment and materials have increased with inflation.”
• “Contract values increased due to the cost of supplies.”

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Net Hiring Grew Slightly

On the labor front, industry net hiring continued to show modest gains (1% increase). This was primarily seen by heavy highway and civil contractors, who saw a net gain of 2.2%, while specialty contractors and general contractors saw minor net decreases.

46% of Network respondents said their net hiring increased, 43% said their net hiring stayed the same, and 10% saw net hiring decreases.

• “We’re expanding into new areas and picking up young talent to train up.”
• “We are getting to a point again where we have qualified people applying and being hired for the jobs we’ve posted, so we’re able to finally close positions that have been open for quite a while.”
• “Hard to find workers.”
• “We need to increase the workforce for fall but have had issues finding talent.”

Contract Spending Increased

According to the Q2 2024 Metrics Index, industry-wide contractors saw a decrease in cash flow by 15%, meaning contractors spent more money in Q2 2024 than in Q2 2023. This typically indicates that contractors spent more money on things like materials, hiring and other capital investments, perhaps connecting back to the increases seen in project starts and contract values.

By sector, cash flow for general contractors decreased by 26% as compared to the same time period the prior year, while specialty contractors and heavy highway and civil contractors saw cash flow increases of 55% and 45%, respectively, compared to Q2 of 2023.

When we questioned The Network, 44% said their cash flow stayed the same, 39% saw an increase in cash flow, and 17% saw a decrease.

• “AR and cash collections are strong.”
• “We had a large overbilling for the last two years and into the spring of this year.”
• “We have been working hard to increase cash flow and stability.”

To see the full report and find out how your organization compares, download Trimble’s Q2 2024 Construction Metrics Index now.