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“Sterling Risk Sentiment Index” Indicates Improvement in Construction Risk Exposure Perception
Companies Surveyed Rate Risk at “4.4” on the Sterling Risk Sentiment Index, Improved From “5.2” in February 2015
By: Sterling Risk Advisors
Rieder also notes: “But with the increase in booked business the issue of staffing pressure becomes even more urgent. In February, 44 percent of construction firms marked that as their top concern, and now that number has risen to 60 percent.”
The survey noted other key issues of concern including economic issues, cash flow issues, HR issues, increased competition and government regulation.
Highlights from the Fall 2015 Sterling Risk Sentiment Index
Note: Where noted, comparisons are with the Feb. 2015 Sterling Risk Sentiment Index
• The #1 risk issue is overwhelmingly staffing, with construction companies struggling to have enough employees to handle projects. 60 percent choose this, up from 44 percent. Economic issues ranked a distant second at 20 percent.
• Staffing again was the issue companies reported they felt least prepared to deal with right now (35 percent). Health care costs were next (16%), followed by computer hacking (14%).
• 71 percent say their company’s exposure for risk is lower than a year ago, a substantial improvement over February’s 55 percent.
• 74 percent of respondents say they have formal strategies in place to manage their risk, slightly down from 78 percent in February. Half say they don’t have those strategies clearly written down.
• 72 percent have reviewed their risk management plans in the last 12 months, down from 69 percent.
The new survey also asked construction companies several general questions:
• 81 percent said their companies have not benefited from any of the “mega projects” around Atlanta (Falcon’s stadium, Braves stadium, major road projects).
• 78 percent said they see their outlook for work with local, state and federal governments remaining at the same level in the 4th quarter of 2015.
Sterling Risk Advisors is a full-service risk brokerage firm with strong expertise in the construction industry. The firm first surveyed construction industry risk sentiment in February 2015. Sterling surveys the construction industry’s risk sentiment on a semi-annual basis, allowing it to follow and compare local industry trends.
The Fall 2015 Sterling Risk Sentiment Index surveyed 84 top executives in Atlanta’s construction industry using SurveyMonkey.com. The survey was conducted between August and September 2015.
About Sterling Risk Advisors
Sterling Risk Advisors is a full-service Atlanta-based risk management and insurance brokerage firm serving the commercial, professional and personal needs of clients across a diverse spectrum of industries. The firm works with companies focused on medical and other professional services, construction, transportation and logistics, manufacturing, real estate and technology. Product offerings include all forms of commercial and personal property & casualty insurance, employee benefits and surety bonds.
For more information about Sterling Risk Advisors, please visit: www.sterlingriskadvisors.com or call (678) 424-6500.
Additional Survey Results
• 84 percent say their profit margins are better today than a year ago (unchanged)
• 92 percent say their pipeline of opportunities is better today than a year ago (unchanged)
• 65 percent say they are able to build adequate contingencies into their project budgets (unchanged)
Leff & Associates