Top Problems a General Contracting Company Faces Today
The coronavirus has affected a lot of industries, including construction. It was a surprise that realtors and builders fared better in 2020 than other businesses. A report says the construction industry will have a Compound Annual Growth Rate (CAGR) of 4.9 percent by 2023.
It doesn’t mean that 2021 will be smooth sailing though. The construction industry is still facing a lot of hurdles. Any general contracting company should prepare to face the following challenges this year:
Aging Workforce and Skills Shortage
The construction industry is seeing a disturbing shift in its personnel. Many of its experienced workers are retiring. But the people replacing them don’t have the necessary skills and experience. The hardworking baby boomer generation is now at retirement age. And 54 percent of construction managers belong to this age group. The problem is they’re leaving behind a young workforce. This group will be handling more complex and demanding projects.
Many construction companies are looking for ways to transfer the knowledge boomers have. Some companies are using mentoring programs to train new workers. They also have outreach programs working to show construction as a profitable profession.
Construction work is dangerous. One webinar in risk mitigation revealed 71% of respondents experienced a safety-related injury. Stricter punishments are now enforced in the industry. Contractors caught not following safety protocols will pay a penalty. Injuries caused by negligence could lead to convictions. The company owner or foreman will face the music.
A general contracting company can lessen the risk their teams face. One way is by following the mandated safety procedures. Safety inspection checklists are now necessary. It also gives the company proof against accusations of negligence.
Integrating New Technology
The construction industry is lagging behind technological innovation and adoption. The government is working to address this issue. They are providing several initiatives to help the sector. But many construction businesses have problems investing and implementing new technology.
Contractors working on several projects also face difficulties with using new programs. Construction companies use different types of project management software. The program improves productivity. It integrates daily reports and change orders. But it puts subcontractors at a disadvantage since they would need to learn how to use them all. They could also lose access after the project is over or if the General Contractor cuts their access. The subcontractor can lose the documentation they need to safeguard their interest.
Your dream project is in good hands with Rising Star Properties. We are one of Florida’s top senior living general contractors. We have been in the business for 25 years. We offer a wide range of services for assisted living facilities. You can rest easy knowing that we’ll be there for you from conception to construction. You can call us at (386) 316-9218 or at (561) 301-3222. You can also send us an email at [email protected].
