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The top contractor challenges reported
were:
-
operating
short-staffed;
-
customers holding off on projects;
-
low call volumes;
-
too much work;
-
and new construction slowdown.
While roughly 70 percent of PHCC
Contractor respondents anticipated normal to better
sales in the future, 30 percent of respondents are not
operating with a full staff, employees, and technicians.
Double the number of respondents reported that customers
are holding off on projects and replacements due to
economic concerns — a significant increase when compared
to fourth quarter results. 72 percent cited rising
costs, and half of the respondents noted delays in
shipping materials. The results were flat at 25 percent
for those who indicated concerns about lower
construction starts when compared to the last quarter.
Looking ahead, 73 percent of PHCC
respondents are anticipating increased cost of doing
business (parts, materials, labor), and most of those
respondents are worried about an impeding recession, as
well as continued challenges finding qualified employees
and technicians.
The top three concerns for contractors
over the next six months include the cost of health
insurance, fear of recession, and increased (additional)
insurance costs. Additional concerns were increased
regulations, decreased construction starts, and cash
flow.
“We are very pleased to unveil this first
quarter 2023 Contractor Confidence Index that will help
us determine the current sentiment of PHCC members,”
said PHCC—National Association President Dave Frame.
“With access to this valuable information, our members
will be able to track challenges and trends that affect
their business, as well as maximize any business
opportunities that are identified. And from an
organization perspective, PHCC will be well-positioned
to identify and develop programs and services that will
meet our members’ needs.”
The PHCC Business Intelligence Department
works to favorably position PHCC members and affiliates
to achieve the highest level of market awareness,
professionalism, leadership, and business profitability
in the emerging and ever-changing built environment.
Relevant resources are updated on a regular basis on the
new PHCC Business Intelligence website: www.phccweb.org/business-intelligence.
Disclaimer: The PHCC Contractor
Confidence Index (CCI) is based on a quarterly survey of
PHCC members designed to take the pulse of the plumbing
heating and cooling market. The survey asks respondents
to rate market conditions for the present time and for
the next six months. Survey results and the PHCC CCI
were developed as a general sense of contractor
sentiment and should not be used as a guaranteed
indication of future performance of economic and
industry performance. Many PHCC Contractors provide both
plumbing and HVAC installation and service.
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About PHCC
The PHCC
National Association, formed in 1883,
provides legislative advocacy, education, and training
to approximately 3,500 plumbing and HVACR businesses and
65,000 technicians. Members of PHCC have access to a
wide variety of services designed to increase their
professionalism, grow their business, and improve
profitability. For more information about PHCC, visit phccweb.org.
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