Risky Business for Contractors

To stay afloat financially in 2022, a growing number of construction business owners across the U.S. took risks on liquidity.

Nearly 50% borrowed from credit cards, up from 44% in 2021. And 19% used retirement savings, up 17 percentage points over the same period. 

However, fewer contractors in 2022 relied on their business savings (40% compared to 53%), while lines of credit fell 3 percentage points over the previous year to 41% 

As a result of floating payments, general contractors in 2022 incurred new charges, resulting in $208 billion in additional costs to the construction industry, up 53% over 2021.

These findings are based on construction finance software Rabbet, which surveyed contractors and subcontractors in the fourth quarter of 2022.

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