This year’s study results indicate changes in the engineering and construction risk environment over the last three years and provide important data points regarding future risk management trends.
RALEIGH, NC, March 21, 2019 /24-7PressRelease/ — FMI Corporation, the leading provider of management consulting and investment banking services to engineering and construction, infrastructure and the built environment, is pleased to announce the release of the latest AGC/FMI survey of the risk environment in the construction industry. This year’s study results indicate changes in the engineering and construction risk environment over the last three years and provide important data points regarding future risk management trends. All information is based on responses from best-in-class companies that are active in AGC’s Surety Bonding and Construction Risk Management Forum.
The most significant current risks that the survey identifies are:
• Limited supply of skilled craftworkers (80%)
• Limited supply of field supervisors (44%)
• Changes in construction contract and insurance policy terms and conditions (33%)
• Tighter project schedules (30%)
• Increasing project complexity (19%)
And the most significant future risks include:
• Economy slowdown (58%)
• Limited supply of field supervisors (46%)
• Strategic agility, broadly defined as comfort with changing technologies and processes (39%)
• New company leadership/ownership (36%)
• Increasing project size and complexity (29%)
The 2019 report outlines these risks and then digs into the strategies that contractors have identified for recession-proofing their organizations. While contractors continue to consider an economic slowdown to be a future and not a current risk, AGC and FMI have seen the number of contractors in that category increase from 8% to 58% over the last three years.
The 2019 report also expands on one eye-catching response to last year’s survey, when a large majority (92%) of contractors reported that the design documents being provided to them were incomplete. The 2018 survey also found that, in response, 38% of contractors were increasing their in-house design capabilities. This year that number has increased to 43%. The 2019 report explores the different approaches that firms are taking, the reasons why and the risks involved.
Finally, the latest report takes a larger look at state-of-the art of construction risk management, expanding on the evidence that “executives are more likely to take a proactive approach to risk management as opposed to viewing it as a defensive exercise.”
AGC and FMI hope you find their latest report to be helpful. To access the “2019 AGC/FMI Risk Management Survey,” please click here.
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