Whether you’re a small mom-and-pop construction company or one of the biggest names in the business, trends in the construction industry impact everyone. While analysts predict that 2017 will see an improved economy and construction will keep growing, there are still a handful of trends that keep builders up at night.
Here are a few construction trends that impact my clients daily:
#1. THE EVER-DIMINISHING LABOR FORCE
According to a recent nationwide survey of 1,459 contractors conducted by the Associated General Contractors of America, 69% are having difficulty finding workers to fill hourly craft positions. What’s more, 38% are having difficulty hiring salaried field positions and 33% are having difficulty hiring salaried office positions.
In addition, the aging workforce is a concern, as baby boomers are retiring and the upcoming generations are slow to fill their place. The recession also played a role, with many skilled craftsmen leaving the industry that haven’t yet returned —if ever. By 2020, Millennials are expected to represent more than 50% of the workforce, many of whom have little to no experience (or interest) in the construction industry.
Many in the industry believe that reaching out to the younger generation to emphasize the career opportunities in construction is imperative. More contractors are working with high schools to meet with young people and encourage them to learn more about the industry —and strides are being taken in training programs to encourage engagement and interest.
#2. PROJECT COMPLEXITY AND PERFORMANCE
While opportunities in the industry are growing, so is the complexity of the available projects. With construction companies already operating on razor-thin margins, a single production surprise can derail an entire project and —depending on scope— can make profits vanish.
Project complexity is also felt in the company’s ability to keep up with the times —particularly as projects and designs become larger and require more efficient and expertise. In fact, according to a recent Accenture study, 30% of large projects in the energy industry are delivered on budget, and only 15% are completed on time.
Developing a culture of safety is paramount to most, if not all, construction firms. Most agree that consistent safety protocols across subcontractors is a constant challenge particularly when profit margins become thinner and thinner as more contractors fiercely outbid each other to provide the lowest estimate for the job.
I consult with numerous construction companies and related parties to help them create a solid insurance portfolio to ensure their interests are protected in the event of a construction-related or workers comp claim. From wrap-up policies to project specific and practice policies, I can help.
Don’t let insurance be one of the worries that keep you up at night. Connect with me today to learn more!
Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.