The importance of current general contractor insurance

Earlier this week, this blog discussed how the government shutdown could impact the construction industry. As the housing market slowly began to recover, many in the home building sector were optimistic about their own future. However, recent research shows that some workers have been leaving the field for other areas.

Those who own or oversee construction and contracting firms need to remain aware of these issues. Having the right general contractor insurance in place will not guarantee positive hiring numbers, but it is another measure in place to keep the company protected against unseen risks.

According to a survey by the Associated General Contractors of America, 74 percent of U.S. construction firms have had a difficult time finding qualified employees to fill key roles after the sector laid off individuals during the recession.

AGC chief economist Ken Simonson said in a company press release that the number of unemployed, experienced construction workers has dropped by half over the last three years.

"Unfortunately, the construction industry has been able to hire only about a third of those workers, while the rest have left construction for other industries, schooling, retirement or have dropped out of the labor force," he said. "The recent leveling-off of construction hiring means the industry risks losing more of its experienced workers, setting up a potentially grave shortfall when demand for construction resumes."

However, David Crowe, chief economist for the National Association of Home Builders, remains optimistic. Crow explained in a company statement that there could be a decent housing recovery over the next two years. In terms of GDP growth, housing has been growing at higher rates than other sectors. 

When organizations have an ideal general contractor insurance policy, they will be better prepared to handle adverse situations. Hiring might fluctuate, but the overall stability of your firm doesn't have to.




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