We recently surveyed our blog readers to determine the biggest challenges construction companies will face throughout the coming year. Readers were asked to select the two biggest challenges their construction company will endure in 2015 from the following options:
- Landing Enough Work To Be Profitable
- Hiring Qualified Skilled Workers
- Increased Competition
- Rising Insurance Costs
- Managing Cash Flows
- Rising Costs Of Building Materials
- Fewer Contracting Opportunities
When asked what their biggest challenge would be in 2015, 47% stated it that finding enough qualified workers was their number one concern. Landing enough work to be profitable was next at 31% followed by managing cash flows and increased competition both at 6% each.
Of the 47% who stated finding qualified workers would be their biggest challenge, an equal number of respondents listed landing enough work, managing cash flow and rising insurance costs as their second biggest challenge at 24% each. Increased competition and rising costs of building materials were next at 9% each.
Oddly enough, 6% of people who listed finding qualified workers as their top concern also listed finding qualified workers as their second biggest concern. I’m not sure if this was in error or if they were trying to emphasize how challenging they feel hiring skilled workers is going to be in 2015.
For the 31% who listed landing enough work to be profitable there was a four-way tie for what those folks listed as their second biggest challenge. Managing cash flows, increased competition, finding qualified workers and fewer contracting opportunities each clocked in at 23%. Rising insurance costs was next at 8%.
When asked what the second biggest challenge their company would face this year, 20% said finding enough work, 19% said managing cash flows, 16% said rising insurance costs and 14% each said increased competition and hiring enough skilled workers.
If we look at total responses, 30% stated that finding enough qualified skilled workers was going to be one of the two biggest challenges their construction company will face in 2015. Securing enough work to be profitable was second at 26% and managing cash flows was third at 12%.
In the coming weeks we’ll be doing some blog posts to offer ups tips and techniques for construction companies to face these challenges head on in order to overcome them and have a successful year.