10
• Cash flow across the industry decreased 16%
compared to Q3 and Q4 in 2021; it increased
17% compared to Q4 of last year.
• Cash flow for heavy highway and civil contractors
increased 98% compared to Q3 and Q4 in 2021;
it increased 140% compared to Q4 of last year.
• Cash flow for specialty contractors decreased
62% compared to Q3 and Q4 in 2021; it decreased
22% compared to Q4 of last year.
• Cash flow for general contractors decreased 50%
compared to Q3 and Q4 in 2021; it decreased 17%
compared to Q4 of last year.
Potential Impact
Typically, a decrease in cash flow is seen as a good sign for the industry: It indicates
that contractors are spending money on new projects or on other investments. While
new projects continue to be down year over year, the fact that contractors are spending
cash could mean that they're anticipating more projects coming online soon so they're
appropriately investing for the future.
A notible exception is heavy highway and civil contractors, who are holding on to cash,
which makes sense given their large decline in project starts and contract values, and
their lack of hiring. This may change as infrastructure funding is more readily distributed
in the year ahead.
Cash Flow
Trends
Construction Metric Index
Cash flow across the
industry decreased 16%
year-over-year
16%
Construction Activity Index - Q3 & Q4 2022 ©Trimble Viewpoint, Inc. All Rights Reserved.
