In Brief Construction companies must weigh buying versus leasing equipment based on cash flow, tax planning, and utilization needs. Buying creates a long-term asset, supports bonding capacity, and can provide tax benefits through depreciation. Leasing preserves cash flow, reduces upfront costs, and offers access to newer technology and service agr…
The new tax bill signed into law on July 4, 2025, holds significant benefits for construction contractors. In general, the “One Big Beautiful Bill” (OB3) makes permanent certain provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire at the end of this year or phase out over several years. Additionally, it contains numerous new prov…
Over the last few months, construction companies and contractors have faced new uncertainties impacting their businesses. The Trump administration’s announcement of tariffs on lumber, aluminum, steel, and certain minerals has caused an increase in the price of raw materials and other construction materials. In fact, a recent survey by the Ass…
Maintaining positive cash flow is essential for the financial vitality of a company. While this is true for most industries, it has a special significance for capital-intensive businesses such as construction companies and contractors. Industry companies manage large projects that involve significant upfront costs, requiring a steady stream of cas…
Construction businesses operate in an environment where precision and timing are everything. Managing multiple jobs, coordinating subcontractors, and staying on top of costs are demanding. Add complex billing cycles, compliance obligations, and financial reporting requirements, and the back office can quickly become a bottleneck. Many construc…
Driving growth and profitability means leveraging opportunities when they arise. This often means submitting proposals for larger and more complex projects in the construction industry. However, larger opportunities frequently require contractors to have the proper bonding capacity. Bonds provide project owners with assurance that the contract…
Offering a retirement plan is a strategic move for construction companies looking to attract and retain skilled workers. According to a recent study, the construction industry will need 439,000 net new workers in 2025 to meet demand, yet 94% report difficulty finding workers. With ongoing labor shortages, competitive benefits can make a meaningful dif…
Welcome to our 2025 California Construction Industry Forecast. The data in this report is obtained through our non-exclusive license with Construct Connect, one of the largest construction data providers in the U.S., and our own proprietary research and internal data. 2025 looks to be another strong year for the California Construction Industry, and a…
Fraud is a persistent concern amongst construction companies due to the opportunities for illegal behavior to occur undetected. The size and scope of many projects make it nearly impossible to implement adequate protections. Concerns about bid rigging, billing schemes, equipment/asset theft, larceny, and skimming are just a few ways companies are vi…
Due diligence leading to a merger involving construction companies involves special consideration of issues unique to the industry. During times of high investment activity in construction deals – such as what we’ve seen in the past couple of years – investors must understand how the singular characteristics of a construction company can impact not onl…
While the construction industry is known for its physical and financial challenges, it is increasingly facing another formidable threat: cybercrime. As technology becomes integral to project management, communication, and data storage, the construction industry becomes an attractive target for cybercriminals. What was once thought only to be an i…
As Baby Boomers continue to retire and transition ownership in their companies either to family members or outside buyers, another type of transaction is emerging as an option – an employee stock ownership plan, or ESOP. In the construction industry, where the market for third-party buyers can be limited, an ESOP may provide a strong transition option for…
