What are some of the biggest challenges the construction industry faces?

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Whether you are a small or large business problems are similar on project after project.  What is your biggest challenge when dealing with construction?  Some of the major problems faced by the construction industry include:

  1. SKILLED LABOR: there is not enough skilled workers to fill the demand. Millennials are not being sold on construction careers and more people today are going to college rather than vocational schools.  One solution is be a mentor to high school students looking for summer work and also for recent college grads.  Being a mentor might create an interest in the ‘intern’ and they may change their minds about their career path.  Showing them the benefits of the profession and all of your good experiences may open their eyes to the possibilities.  You might also consider using a Construction Staffing Agency who have skilled workers ready when you need them.
  2. COMMUNICATION: when things go wrong on a project it may be due to a lack of communication. Using technology such as smartphones, apps and software will help eliminate this problem.
  3. SUBCONTRACTORS: if subcontractors are unreliable, not only does this negatively affect the project but may damage your reputation as well. Always check a subcontractors’ licenses, ask for referrals, check with your regular vendors and suppliers for reliable subcontractors.  In addition, be sure they have liability insurance
  4. SCHEDULING: even for the most competent professional, scheduling can be difficult. Project management software is an excellent solution to this problem.  These programs may be accessed via a smartphone, tablet or desktop making it easy to stay on track.
  5. INSURANCE COSTS: insurance cost is part of doing business in the construction industry. Try to lower rates by combining coverage, making sure you are current on your policies and actively review policies yearly to see where you might cut costs.
  6. CASH: having available cash to pay vendors, subcontractors, suppliers and equipment renters might be a problem as you don’t get paid until the project is complete and they are looking for payment prior to project completion. Having an open business line of credit can help get you through the rough spots and this will keep your reputation and credit intact.
  7. BLAME: when something goes wrong in the construction industry, people blame each other.  The general contractor blames the subcontractor, the owner blames the general contractor and so on.  To eliminate the issue, consider a builder’s risk policy to protect you and prevent additional costs.
  8. REGULATIONS: regulations change on the county, state and federal level. Avoid failing to follow regulations by staying current via blogs, trade publications, and newsletters that offer the latest information on regulations.

Every industry faces problems, and the construction industry is not immune to its own set of problems.  Understanding what the specific industry problems are and knowing the available solutions available are key to success. Research resources available to help with the industry issues and incorporated them into your policies and procedures to ensure efficiency and efficacy.

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