If 2020 is the year of unprecedented challenges for the Construction industry, 2021 will be the year of unprecedented opportunities to overcome them. While many factors will influence this recovery, a few will stand out as especially critical to your company’s growth and success next year:
Cash flow. Cash is always a concern for contractors, but recent events have heightened the focus on cash flow issues as the costs of remobilizing projects, staggering shifts, investing in health protocols, and the inevitable impact on insurance costs begin to hit the contractor’s bottom line. Employing construction-centric financial models will be more important than ever to enhance decision-making and adapt to evolving cash flow scenarios.
Labor issues. As a result of COVID-19, the industry’s labor shortage is compounded by workers’ fears of returning to the job site. As we anticipate a potential second wave, the greater your investment in health and safety protocols to ease concerns, the better positioned you will be to staff and advance projects.
Retirement planning. The distressed economy caused by the pandemic has created an immediate opportunity for contractors to reassess estate and succession plans. While lower corporate valuations yield significant estate planning opportunities, owners looking to sell will be faced with tough decisions.
Cybersecurity. The rapid rate at which contractors adopted remote work and other technologies in response to COVID-19 will make the industry ripe for cyberattacks. Cybersecurity training, awareness and technologies will be a higher priority than ever – both in the office and at the job site.
This article originally appeared in the July/August 2020 issue of Construction Executive.