Contractors and equipment distributors believe construction industry expansion is more likely than contraction this year, according to the 2019 Wells Fargo Equipment Finance Construction Industry Forecast. Ninety percent of respondents expect net profits to remain the same or rise in 2019, and Wells Fargo’s optimism quotient remains very strong at 122, compared to 133 in 2018, 123 in 2017 and 108 in 2016.
The vast majority of contractors (96 percent) plan to purchase new or used equipment this year; of those, three-quarters plan to maintain or increase their 2018 buying level. Similarly, 92 percent plan to maintain or increase their rental activity, and 46 percent say flexibility is the dominant reason they rent equipment.
Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.