Article written by Mary Grandy and Trish Drew on ConstructionExec.com

Now that businesses are settled into the new year, it’s a good time to consider some of the top insurance and risk management challenges that contractors and other construction organizations should expect in 2019.

Auto Premiums Continue Upward Trajectory

Chances are good that businesses already have felt the impact of rising auto insurance premiums. Insurance carriers have been facing an increase in both frequency and severity of auto losses during the past several years, making commercial auto one of the worst performing property casualty insurance lines. As a result, underwriters have continued to increase rates and premiums to offset tighter margins, as well as reevaluate and often restrict their underwriting appetites. 

Key Takeaways

• Nonresidential construction spending, which totaled $773.8 billion on a seasonally adjusted annual basis for February, was a 4.8% increase over the same time last year.
• Private nonresidential spending fell 0.5 percent for the month and is only up 0.1 percent on a year-over-year basis.
• Public nonresidential spending is up 3.7 percent for the month and an impressive 12.1 percent for the year.

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, April 1—According to an Associated Builders and Contractors analysis of U.S. Census Bureau data released today, national nonresidential construction spending rose 1.2 percent in February. Seasonally adjusted nonresidential spending totaled $773.8 billion, a 4.8 percent increase over the same time last year.

According to data released today by the US Bureau of Labor Statistics, the national construction industry added 16,000 net new jobs in March.

Key Takeaways

• On a year-over-year basis, industry employment is up 246,000 jobs, representing a 3.4% increase.
• The construction industry unemployment rate fell to 5.2%, down a full percentage point from February.
• "The expectation is that construction employment will continue to expand into the summer given normal seasonal factors and the level of backlog as measured by ABC’s Construction Backlog Indicator."
• "Today’s readings suggest that February employment data represented an aberration and that the economic and employment expansion remains in place."

Press Release from Associated Builders and Contractors, Inc (ABC)

Construction Sees Minor Job Growth in March, Says ABC

According to data released today by the US Bureau of Labor Statistics, the national construction industry lost 31,000 jobs in February, the biggest drop since December 2013. This follows adding 53,000 in January.

The losses were seen in all major sectors:

• Residential Building - lost 1,600 jobs in February, but up 43,900 jobs over February 2018
• Nonresidential Building - lost 3,000 jobs in February, but up 9,900 jobs over February 2018
• Heavy and Civil Engineering Construction - lost 13,200 jobs in February, but up 40,600 jobs over February 2018
• Specialty Trade Contractors - lost 13,500 jobs in February, but up 129,000 jobs over February 2018

Press Release from Associated Builders and Contractors, Inc (ABC)

Jobs Decline in Construction Sector for the First Time in More Than Two Years, Says ABC

Anirban Basu, chairman and CEO at the Sage Policy Group, Inc., joins the podcast and discusses the economic trends and leading indicators that contractors need to watch in order to be successful. Basu, who serves as the chief economist for the Associated Builders and Contractors (ABC) and the Construction Financial Management Association (CFMA) notes that while the short-term outlook for the construction industry remains solid, overall indicators point to a potential slowdown over the next couple of years. Effective cash flow management is critical to enduring a recession, and Basu points to new technologies that maximize efficiencies, boost productivity and replace traditional processes. Hear why he doesn’t see a traditional way out of the skilled labor shortage and why a technological revolution is necessary to fill the gaps and keep contractors productive.

Podcast originally appeared on the Viewpoint blog

Key Takeaways

• Nonresidential construction spending, which totaled $750.5 billion on a seasonally adjusted annual rate for December, remained flat when compared to the previous month and is a 4% increase over the same time last year.
• Public sector nonresidential spending declined 0.6% for the month
• In 2019, “there are many variables to watch, including interest rates, worsening skilled worker shortages, rapidly rising construction compensation costs and the U.S. economy’s broader trajectory in the context of a slowing global economy."

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, March 4 — National nonresidential construction spending remained virtually unchanged in December, according to Associated Builders and Contractors’ analysis of U.S. Census Bureau data released today. Nonresidential spending totaled $750.5 billion on a seasonally adjusted annualized basis in December, up 4 percent year over year.

Survey Says: Contractors Committed to Tech, Industry Still Faces Hurdles

Highlights from JBKnowledge’s 2018 Construction Technology Report

Article written by Andy Holtmann on the Viewpoint blog.

Now in its seventh year, the annual Construction Technology Report compiled by JBKnowledge is one of the most impressive surveys in the industry, providing the latest trends on everything from construction software, IT budgets and workflows, mobile apps, emerging technologies and more. The 2018 Construction Technology Report is now available and we recommend checking it out.

Here are some of the key highlights and themes we saw throughout:

According to data released last week by the US Bureau of Labor Statistics, the national construction industry added 52,000 net new jobs in January. Industry employment is up by 338,000 net jobs year-over-year, a 4.7% increase.

Press Release from Associated Builders and Contractors, Inc (ABC)

Construction Employment Surges to Start Year, Says ABC

WASHINGTON, Feb. 1— Construction employment expanded by 52,000 net new jobs in January, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. Industry employment is up by 338,000 net jobs on a yearly basis, which represents an increase of 4.7 percent. Nonresidential construction employment grew by 28,600 net new positions on a monthly basis, although the nonresidential building subsector lost 800 net positions.

Key Takeaways

• Nonresidential construction spending, which totaled $751.5 billion on a seasonally adjusted annual rate for November, declined 0.1% and is a 5.5% increase over the same time last year.
• Despite the annual increase, 12 of the 16 nonresidential subsectors experienced monthly declines.
• “The dip in November spending should not be viewed as a leading indicator of coming decline.”

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, Feb. 1— National nonresidential construction spending declined 1 percent in November, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data released today. The release of November data, originally scheduled for Jan. 3, was delayed by the partial government shutdown.

Total nonresidential spending stood at $751.5 billion on a seasonally adjusted annualized rate, which represents a 5.5 percent increase over November 2017. However, 12 of the 16 nonresidential subsectors experienced monthly declines.

Press release from AGC

Seventy-nine percent of construction firms plan to expand their payrolls in 2019 but an almost equal percentage are worried about their ability to locate and hire qualified workers, according to survey results released today by the Associated General Contractors of America and Sage Construction and Real Estate. The findings are detailed in Contractors Remain Confident About Demand, Worried About Labor Supply: The 2019 Construction Hiring and Business Outlook Report.

“Construction executives appear to remain confident about their market prospects for 2019 and plan to add headcount to cope with the added workload,” said Stephen E. Sandherr, the association's chief executive officer. “Even as they are optimistic about growing demand, contractors are concerned about finding qualified workers to execute projects.”