As 2016 comes to a close, it’s time to take a look at the challenges that construction companies are facing in the coming year. It’s necessary to understand the challenges that your company will face in order to prepare for them and overcome them.
The construction industry continues to grow at a rapid pace and is already 11 percent of the world’s gross domestic product, according to a report by PwC. While this growth is positive and presents great opportunities for construction companies of all sizes, it also presents it’s own set of unique challenges. These challenges can make running a construction business difficult.
The Fort Lauderdale construction attorneys at Cotney Construction Law work with construction companies every day and understand the challenges they face. We’ve presented a few of them below along with tips for overcoming them.
A Shortage of Skilled Workers
An influx of new projects in the construction industry belies the deeper issue of finding enough workers to take part in these projects. Since the recession of the late 2000’s, the number of workers in the construction industry has gone down sharply. Many construction professionals left the industry during that time and didn’t return. Older construction professionals are retiring, leaving an industry that’s struggling to garner interest from the next generation of workers. To combat this trend, companies must actively recruit millennials and find creative ways to match the construction industry’s benefits with their goals.
A Shortage of Qualified Leadership
With fewer new workers coming into the construction industry, there’s fewer people to lead companies. Older workers leaving the construction industry and reduced interest are additional factors in this trend. This is particularly troubling as it can lead to increased costs to find project leadership or poor work products being produced. This is another issue that may be aided by active recruitment and training of a new generation of construction professionals.
A Shortage of Cash
Cash flow has always been an issue for construction companies. They are often caught in the middle of obligations to pay subcontractors and waiting for payment from owners. If they don’t receive payment in a timely fashion, it can spell trouble for them. Consider making a “pay if paid” clause a standard part of all contracts. It’s also important to work with a Fort Lauderdale construction attorney to make sure that a contract protects your interest.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.