Even in a high-performing economy, commercial construction companies can face difficult challenges.
Our national economy is booming. Businesses in most sectors are expanding, Unemployment by any measure, has dropped to historic lows.
Commercial construction companies enjoy great economic progress as much as any other business. The industry, however, still faces a number of challenges. Some of these would happen regardless of the economy while others actually come as a byproduct of the booming economy.
Government Regulations Concerning Construction
Our work in construction faces more regulations than almost any other industry. In many jurisdictions, they face innumerable responsibilities in regulatory compliance, permitting, and other requirements.
One of the major issues faced by construction companies in government regulation lies in the lack of experience that lawmakers and policy formers have when it comes to the industry.
In areas with more regulations and restrictions, small companies have difficulties competing with larger firms with expanded economies of scale to pay for compliance.
Skills Gap Affecting the Labor Pool
Nationally, many industry trades face what experts call a “skills gap.” Three fourths of businesses having trouble recruiting qualified workers reported a belief that their area lacked sufficient skilled labor.
The top three missing technical skills that we have trouble finding in new hires are those involving trades education, data usage, and science and engineering knowledge.
An intellectual capabilities gap exists as well, according to experts. The top three problem areas are problem solving, dealing with ambiguity, and communication
Decades of schools pushing students toward fields that require college education have left the trades bereft of practical knowledge.
We have found that community and technical colleges have started to fill in the gaps with certifications and workforce education programs.
The rapid development of machine learning and artificial intelligence could also provide relief for companies desperate for labor in the coming years.
Keeping Existing Employees Happy On the Job
An issue related to the skills gap is the shallow pool of labor. Those who have skills and work ethic represent a premium commodity in the current economic market. Construction workers can easily find higher wages and better situations.
Commercial construction companies need to find ways to ensure that their workers stay happy on the job. The industry has a large number of open opportunities that can pull workers away from your company.
Pay is only one factor in keeping employees satisfied, however. When a worker feels respected and valued, or feels like a vital part of the team, he or she is more likely to be satisfied in their current position. They are less likely to leave their job, even for a higher paying position.
Effective Time Management
This represents one of the timeless concerns in the field. Commercial construction companies must continually contend with the challenge of completing work on time. Subcontractor failures, mistakes, bureaucratic delays, inclement weather, and other problems remain important issues facing construction projects.
While some issues cannot be predicted or prevented, better organized operations have fewer time management issues. We recommend developing protocols and plans to deal with problems that can reasonably emerge in the course of a project.
Good time management leads to fewer time overruns and fewer unhappy clients, as our experience has shown time and time again.
In the same vein, well run companies also plan for other situations outside of their control. Economic downturns, regulatory changes, and market shifts can all affect a business’s financial success.
Reach out today to learn more about our construction projects around the region and how we can put our standards of quality and experience to work for you.