ConstructConnect Blog

It’s an interesting time for the construction industry. Growth has been strong the past several years, with U.S. construction spending now at an all-time high. Despite having weathered the storm of the Great Recession, the construction industry is still facing challenges, both old and new, moving forward.

Wage theft is a serious problem in the United States that affects workers in many industries. The construction industry, both residential and commercial, is not immune to the growing epidemic of wage theft. Wage theft occurs when a worker is denied full payment of the wages and benefits they legally owed by their employer.

Most businesses prefer bringing in a new equipment if their old one fails, but there may be times when you would prefer buying used equipment. While it may not be very different from making a new purchase altogether, it is a time-consuming process. Some of the things to consider while looking at used equipment include quality, price and buying experience.

If cash flow is the lifeblood of the construction industry, then most are in desperate need of a transfusion. In a recent survey of construction firms, 84% reported that they had problems with cash flow. Almost 19% stated that they dealt with cash flow issues on a constant basis.

Temperatures are dropping, the holidays are approaching and there might even be a little bit of snow in the forecast. It’s officially the offseason in the construction industry. The construction industry is often one of the hardest-hit when inclement weather hits but this doesn’t mean there isn’t work to do.

Climate is the biggest and most important factor in construction; it’s what determines the materials used, the time frame for construction and the durability and longevity of the constructed building.

The opioid crisis in the U.S. has become a public health emergency and it affects people from all walks of life and has invaded all areas of the country. The 2016 National Survey on Drug Use and Health conducted by the Substance Abuse and Mental Health Administration reported that 10,933,000 people 18 or older had misused opioids, including heroin and prescription drugs, within the past year. More than half, 5,658,000, worked full-time jobs and another 1,581,000 were employed part-time.

For many construction businesses the biggest obstacle they face isn’t finding enough qualified workers or even bidding for jobs, it’s actually cash flow — specifically, not having enough of it to pay for liabilities like bills and payroll. According to a recent study conducted by TSheets and zlien, 1 in 5 construction companies faces a cash flow problem.

In the wise words of Dr. Martin Luther King, Jr., “Life’s most persistent and urgent question is ‘What are you doing for others?’” This age-old question is one that is taken into consideration in many companies today. Given the construction industry’s great and lasting impact on society, some may even argue that it’s more important for our industry to incorporate community service into everyday business practices. It can seem daunting, but by creating a culture of service within your business - no matter how big or small — you can go beyond profits and productivity to make a positive impact on the communities in which you work.

The overhead costs involved in a construction business are very different from those involved in a business from any other industry. The involvement of independent contractors, labor costs, equipment rentals and frequent location changes make the overhead costs in this business very different from any business in any other industry. These costs form a substantial portion of any estimate of any construction job.