New Report on Construction Industry Shows Staffing Remains Top Concern

An improving economy has construction companies growing more comfortable about their risk exposure, with respondents reporting in a newly released survey that their “risk sentiment” has dropped to 4.91 (on a scale of 1-10). In the latest “Sterling Seacrest Risk Sentiment Index of the Construction Industry,” most report profit margins slightly better than last year, but concerns about staffing remain their number one issue.

When Sterling Seacrest launched its Risk Sentiment Index in 2015, the risk sentiment level was at a peak of 5.15. It dropped in 2015 and 2016 but jumped again between 2016 and 2017.

Businesses were also surveyed about how recent federal government changes were affecting their businesses:

• 58% said the Trump administration’s tariff policy has not affected their business
• 92% said that new tax laws and reductions in corporate taxes have helped their businesses
• As a result of tax changes, companies say they have given their employees raises, purchased new equipment and added staff

Highlights from the Index 

The top four issues in order of concern were staffing (79%), economic issues (44%), healthcare costs (40%) and competition (28%). Issues construction industry executives feel least prepared to deal with right now include staffing, cybersecurity and healthcare costs.

• 20% feel their company’s exposure for risk is lower than a year ago; 25% feel it’s higher
• 52% say their profit margins are better today than a year ago
• 42% say their pipeline of opportunities is better today than a year ago
• 74% say they are able to build adequate contingencies into their project budgets

For more info, visit http://www.sterlingseacrest.com/2019-construction-risk-sentiment-index/ .