Survey Finds Small Construction Firms Optimistic

Small construction companies are more optimistic about economic conditions than other small business, a survey has found.

In its first survey directed at small businesses in the construction/contracting industry, the Northbrook, Ill.-based International Profit Associates Small Business Research Board measured and compared overall small business to this important business segment.

The IPA Small Business Confidence Index (IPA SBCI), which measures expectations about revenue growth, the general economy and hiring looking forward 12 months, stands at 47.3 for all small business.

In the construction/contractor industry, the IPA SBCI is at 49.3 as compared to 44.6 in the nonconstruction businesses in this survey.

The construction industry is more optimistic about the general economy for the next year than small business overall.

Construction company executives are 23 percent more optimistic than their business peers in the nonconstruction small business sector. Results found 48 percent of those in construction surveyed believed the general economy will improve, compared with 44 percent in overall small business and 39 percent in nonconstruction industries.

When asked to identify the single most important issue to their businesses, 25 percent of those in construction identified the cost of materials as most important.

This compared to 10 percent in nonconstruction businesses.

Conversely, the cost of energy/fuel was cited by 16 percent in nonconstruction small business and only 3 percent of construction/contracting businesses.

Finding quality employees is of major concern to many businesses, but a bit less so in construction.

Overall, 13 percent indicated quality employees is the single most important issue facing them. In construction, 10 percent identified this as the most important issue, while in nonconstruction small businesses, 16 percent of owners and managers identified this as the top issue.

On the hiring front, construction expects to increase hiring more than general small business.

Overall, 39 percent of small businesses expect to increase hiring during the next year. In construction, 43 percent feel they will increase hiring as compared to 34 percent in non-construction industries.

"Growth in the construction sector, coupled with higher costs for construction materials and hiring pressures, will be watched closely by the Federal Reserve as it determines future interest rate policy for the economy in general," said Gregg Steinberg, President of International Profit Associates.

Indianapolis Opens New Control Tower

Officials from the Federal Aviation Administration, the Indianapolis Airport Authority and the city of Indianapolis recently marked the formal opening of the new Air Traffic Control Tower complex at Indianapolis International Airport with a commissioning ceremony.

The commissioning of the ATCT and Terminal Radar Approach Control building mark a milestone in the continued construction of the new Indianapolis airport. Because of FAA safety and visibility requirements, the tower complex must be operational before construction can be completed on the new main passenger terminal building, now being erected east of the tower.

The ATCT is composed of two units: a control tower and an adjoining two-story administrative building, which includes the TRACON facility. The new control tower is 340 ft. high - more than twice the height of the current tower, which opened in 1972.
Construction of the new tower complex began in May 2003. The new ATCT and
TRACON were constructed and equipped by the Federal Aviation Administration at a total cost of approximately $38 million.

The $1.1 billion New Indianapolis Airport will feature a new terminal building located between the two existing main runways along with new highway access, new and improved parking and support facilities and improved utilities and airside operations.

The new airport is scheduled to open in late 2008.