By Alan Ferguson | September 19, 2022
Despite the plethora of construction work currently available thanks to state and federal infrastructure investments and the pent-up demand for new housing it’s a challenging time for contractors.
Several factors beyond contractors’ control are negatively impacting the construction industry and increasing exposures, particularly for smaller trade contractors. Insurance rates are also rising at the same time, making the cost of doing business more expensive.
Here are four of the biggest issues facing contractors that agents should be aware of and how they can help their clients navigate through them:
Shortage, Higher Costs of Materials
The worldwide shutdown caused by the COVID-19 pandemic brought the production of construction materials like steel, lumber and appliances to a screeching halt, which has seriously disrupted global supply chains over the last 18 to 24 months.
More than 90% of builders reported some type of material shortage last year, which was the most widespread shortage since the National Association of Home Builders (NAHB) began tracking shortages in the 1990s.… read more > “4 Issues Facing Contractors That Agents Must Know”