This survey by the Associated General Contractors of Minnesota was conducted August-September 2007. It is intended to provide Minnesota's construction industry opinions and projections for the 2008-2010 time frame. It was drawn from Heavy Construction, Municipal Utilities, Transportation and Building industries. Responses came from both general and specialty contractors, materials suppliers and architect/engineer design professionals.
One hundred fifty-four construction industry companies responded to the survey. The firms
who responded to the survey are a diverse group, from multi-state firms with sales over $2
billion who employ thousands of workers, to smaller firms working in niche markets. Whether
contractor or design professional, each respondent has a unique role in Minnesota’s
construction industry.
Over 50% of the respondents project a decreased volume for 2008. While the full economic
impact of these projections would be hard to estimate, it is clear that sales and construction
industry employment will decline, as will sales and employment in related businesses such as
design, engineering, insurance, bonding, and equipment and material suppliers. The survey
shows the industry has significant capacity to perform construction work of all types
throughout Minnesota during the next several years.
Representing approximately 10% of the Minnesota economy, the construction industry is a vital
economic engine that touches our lives in many ways each day, adding to our quality of life
and providing significant economic stimulus to Minnesota communities.
If the Minnesota construction market continues to contract, many Minnesota contractors and
related businesses and their employees will be faced with difficult decisions regarding their
future. Contractors need to have some idea of what their future holds, to plan for staffing,
banking, insurance, equipment and technology upgrades, etc. Without some idea of what
their future holds, some firms will shift their focus to other markets within the region or
beyond. Others will elect to enter other industries where skills and resources transfer. Sadly,
some firms will have no option other than to close their doors. One of the greatest threats
we face in this declining market is the loss of trained, skilled workers, including professional
and technical workers, who choose to move to another location or to change industries and
not return. We are already experiencing the flight of workers to other states. At a time when
skilled labor is at a premium, the loss of trained, skilled construction labor to other states or
industries is an immeasurable economic loss to the Minnesota economy. We must take steps
to preserve and enhance our skilled construction industry workforce, and investing in our
infrastructure now will provide for jobs where our skilled workers can build projects with
Minnesota quality. By delaying this investment, we miss economic opportunity and pass on
the many costs of waiting to our taxpayers.