News & Press

Construction Industry Risks Explored in 2019 AGC/FMI Risk Management Survey

The limited supply of skilled craftworkers was overwhelmingly rated to be the biggest current risk that is facing the construction industry, while an economic slowdown is the biggest future risk cited by participants in the recently released “2019 AGC/FMI Risk Management Survey.”

The annual survey asks companies that are active in AGC’s Surety Bonding and Construction Risk Management Forum what they perceive to be the leading industry risks. They also survey companies on their strategies to mitigate the risks and how contractors can “recession-proof” their organizations. 
Some 80 percent of respondents this year cited the limited supply of skilled craftworkers as the industry’s biggest current risk. Also included among the top-rated current industry risks: 

  • Limited supply of field supervisors (44 percent)
  • Changes in construction contract and insurance policy terms and conditions (33 percent)
  • Tighter project schedules (30 percent)
  • Increasing project complexity (19 percent)

Asked about future risks, some 58 percent of respondents rated an economic slowdown number one – a worry that has increased in that category from 8 to 58 percent over just the last three years in this annual survey.

Additional future risks that were cited include:

  • Limited supply of field supervisors (46 percent)
  • Strategic agility, broadly defined as comfort with changing technologies and processes (39 percent)
  • New company leadership/ownership (36 percent)
  • Increasing project size and complexity (29 percent)

The 2019 report expands on one key response to last year’s survey, when a large majority (92 percent) of contractors reported that the design documents being provided to them were incomplete. The 2018 survey also found that, in response, 38 percent of contractors were increasing their in-house design capabilities. This year, that number has increased to 43 percent. The 2019 report explores the different approaches that firms are taking, the reasons why and the risks involved.

To read the full report, go to https://www.fminet.com/the-2019-agc-fmi-risk-management-survey-executive-summary/