The Third Quarter 2013 Construction Executive Survey from Wells Fargo Equipment Finance confirms that the construction industry continues on an upward path. According to the survey, 57.7% of the executives surveyed said activity was “somewhat higher” or “much higher” over the past year, compared to 47.8% in 2012.  In addition, 15.5% of respondents said construction activity is “somewhat lower” or “much lower” than a year ago. In 2012, that number was 18.4%.

Overall levels of local construction activity have been improving for each of the last three years according to the survey. Both those that sell and those that buy equipment are reporting improved levels of construction activity compared to 2012. Additionally, the report says 60.4% said construction activity was “somewhat higher” or “much higher” than a year ago. In the 2012 survey, 48.6% of distributors said activity was higher than in the previous year. Almost as many contractors as distributors (57.8%) said local construction activity was “somewhat higher” or “much higher” than a year ago. In the 2012 survey, 45.4% of contractors said overall activity was higher.

Highlights from the Q3-2013 Survey:

• Pricing - Prices of new equipment are up according to industry executives. The cost of renting equipment does not appear to have risen at the same pace.

• Tier IV Equipment - Over 80% indicated that they expected similar or higher resale values when compared to the equipment they currently own.

• Equipment Acquisition Strategies - one fourth of contractors said that within the past twelve months they have acquired equipment from the Internet without first inspecting it in person. In addition, they overwhelmingly said it was a positive experience.

To read the full Q3 2013 Wells Fargo Equipment Finance Construction Quarterly, click here.