How are contractors preparing for a pending recession

A new study suggests that slower construction can be a major indicator of a pending recession.

The study of 250 US general contractors and subcontractors found that 73% can show what the largest economic climate will be based on project speeds.

Further 59% are concerned that the current tariff crisis will have a direct impact on their projects and business as a whole.

Half said they often have to fix to prevent them from sitting in quotas for their projects.

Three in five contractors (58%) are so secure in the relationship between industry and the largest economic climate, they believe that the growth of faster payment systems will “guarantee” the decrease in inflationary pressure in the construction industry.

Ordered by built and carried out by Talker Research, the study found that it takes 15 days on average for contractors and subcontractors to receive after billing payments for their jobs.

However, seven in 10 have experienced delays in their payments.

Those who have had payment delays said about 10% exceed 30 days.

And many usually turn to the savings of their business savings (45%), business credit lines (45%) and credit cards (44%) to cover costs while waiting for payments.

As a result of payment delays, 72% said they had to regulate supply amounts up to average 8% in order to compensate.

Sixty -four percent had to submit the second debt for delays.

And the average contractor had to stop all work on special projects at least in the past year due to delays.

One -third (35%) also had completely canceled projects or delayed the second for the lack of finance by developers.

“Payment delays are not just administrative headaches – they are adding significant hidden costs in construction, especially with the already strained budgets where fewer pencil projects,” says Chase Gilbert, CEO of Built.

“If the projects are stuck, your money is not working for you; are working against you. Developers who are slow to pay cost them more than they can understand – when they see them or not.”

The survey revealed that many contractors have approved a number of different measures to manage their money flow and the costs between slow payments cycles.

These measures include increasing credit use (41%), longer negotiated conditions with suppliers (33%) and reducing project offers (24%).

Delayed payments can be so heavy of a problem, 76% will offer off offers deductions if a faster payment was guaranteed – 5% on average.

Six in 10 said that a developer for timely payments has a major or significant impact on their decision to provide a project.

In their opinions, many contractors said that the largest contributors to payment delays are derived from contract disputes (23%), money flow management and priority (21%), banking disbursement processes (18%), administrative holdings (14%) and manual or paper -based processes (14%).

More than half (58%) believe that technology plays a major or important role in providing faster payments in the construction industry.

Four to five (82%) said they would willingly agreed to receive digital payments if they mean to receive their money faster.

“Delayed payments not only irritate contractors – they create a strict effect that increases costs, shed scores and erodes boundaries throughout the industry,” Gilbert said.

“Modernizing the course of payment of payments is not just about speed – it is about protecting profitability, upstanding and accelerating capital entrances. When capital moves efficiently, any benefit –

Survey Methodology:

Talker research surveyed 250 contractors and general US subcontractors; The survey is ordered by construction and administered and carried out online by Talker Research between April 2 and April 10, 2025.