EVOLVING BUSINESS ENVIRONMENT Innovating and Insuring for Success

As we enter the third year of the COVID-19 era, industries continue to face new challenges and the “need to adapt” remains a frequent refrain in our ever-evolving roles as company leaders. Over the past three years, the entire world came to a standstill, then in sharp contrast, the construction industry saw an incredible boom. Many areas of the country experienced an enormous uptick in construction activity, only to be hampered by the bullwhip effect. Materials became scarce and labor dried up. This resource shortage was felt in every industry, not only construction. Companies have been forced to bridge the disparity between demand and supply, but how?

Enter innovation…

When we think “innovation” most people probably default to technology and while technology is a major conduit for innovation, there is more to it. Adapting, in some cases, has companies returning to basics – taking care of people and finding creative ways to manage relationships.

Construction companies have adopted practical and relevant practices over the last three years to continue to grow and thrive despite the challenges that the pandemic has presented. The tools help to ultimately reinforce the strength and depth of their employee and client relationships. Here are a few for consideration:

A Change in Pace for Technology Adoption

Construction companies have historically been slow to transition into new technology, but if COVID can be responsible for positive change, it has forced a tech evolution for construction companies who must suddenly do more with less. Adopting new technology allows companies to better leverage their data. With data, how you get it and how you share it are all important factors in its usefulness to your clients and organization. Many clients have instituted tablets for field PMs and integrated, live-feed software to harness their data and this tech is a gamechanger, as real time information can be shared within the company from the field. Companies that don’t embrace these enhancements will be left behind.

Creative Solutions for a Labor Shortage

COVID and the general labor shortage has forced a renewed focus on company culture in employee recruiting and retention. Employers must look not only at the overall company mission and how that translates within, but at their full compensation package including wages, health benefits, savings plans, and fringe benefits like company vehicles. Now is the time to evaluate your competitiveness in all these areas, especially health benefits, but there is a unique value in benefit type that needs to be explored through the lens of a shortage in human capital.

By James N. Congelio, Partner Sterling Seacrest Pritchard

Choose Wisely

Now, more than ever, be selective in choosing clients. Due to the challenges of today, the margin for error is much slimmer. No one can predict when the labor crunch will subside or when material supply chain woes will fade, but one thing contractors can choose is who they work for and what relationships to foster. When challenges arise, we have seen the full spectrum of responses by project owners. From “it’s not my problem” to “you signed a contract so figure it out” to “we’re all in this together.” The receptiveness of a client and setting reasonable expectations makes a huge difference in the success of a project, or in extreme cases, the survival of the company.

Finally, innovate your insurance strategy. Insurance can often be viewed as just insurance. It is far from a one-size-fits-all product, especially when it comes to construction. A good risk advisor does the heavy lifting, so you can focus on your business.

About Sterling Seacrest Pritchard

The team serves as your risk advisors first and insurance broker second with highly skilled professionals who collaborate with your business to position your companies to reach your goals with uniquely tailored insurance solutions. ■