Forecasters point out that small construction firms have good reason to be opportunistic in steering their businesses forward. In fact, many small businesses had strong growth in 2021, despite unprecedented challenges. Looking toward normalcy, investments in technology and efficiency could help small contractors push even further ahead.
Looking Ahead
Government spending, via both the Infrastructure Bill and additional budget earmarks for energy efficient building, is anticipated to “power demand” for builders. Additionally, For Construction Pros observe: “The U.S. construction industry will continue to benefit from the white-collar economy transitioning to remote work, driving demand for home improvements as well as second home purchases.” In sum, industry experts offer this forecast:
The small business economy has proven resilient over the last two years of unprecedented turmoil and change. Expect the remainder of 2022 will bring a welcome sense of normalization as the virus dissipates, inflation weakens and some supply constraints are resolved. However, many uncertainties remain for America’s small businesses, and the coming year will prove as eventful and potentially more opportunistic than those of recent past.
Of course, successful builders always have control of their financials. Doing so enables agility, resilience and the ability to capitalize on new opportunities. Having the right financial data at your fingertips every day allows you to make smart decisions about people power, eye new bids and plot your way to growth. That’s why construction company owners rely on The Partnership Account® for Contractors from Colonial Surety. With it, you’ll have your own private digital dashboard, providing you with a day to day snapshot of your single and aggregate limits, as well as your current and available bond capacity. As your work in progress decreases, you can even update your work on hand—increasing your aggregate so you can go ahead and move that next bid ahead. Afterall, you’re in control. Get started today: Pre-Qualify and Get Free Scores Here.
Improving—But Not Normal
That’s the forecast for “supply chain normalization.” As the Infrastructure Bill’s incentives for domestic manufacturing kicking in—along with investments in automation at factories, For Construction Pros anticipate that disruptions in the supply chain will begin to improve—but headaches will continue:
Lead times will come down for many products, especially those with fewer component parts and those manufactures in onshore or nearshore locations. However, expect labor shortages to persist in 2022, causing strains on manufacturing as well as the trucking and logistics sector. Also expect backlogs in ports and on cargo ships around the world as pent-up demand continues to outstrip the supply of containers, ships and port-space. COVID-19 spikes in China could exacerbate existing problems in the global supply chain.
When it comes to keeping day to day operations moving along, don’t overlook the critical importance of investing in an outstanding onsite project manager. As Phil Shepard, Bond Manager and Head Underwriter, at Colonial Surety advices, doing so can make all the difference to your bottom line:
A strong project manager is key to keeping projects running on time and on budget. When issues arise with scheduling changes, poor sub-contractor performance, or other delays, a good project manager will make sure to manage and mitigate problems and keep the project running smoothly. In addition, strong project management will keep open lines of communication between the obligee, contractor and subs and suppliers and even utility companies. Efficient, effective project managers are invaluable to successful day to day supervision, coordination and scheduling—which lead to successful project completion.The reverse can cause project delays, liquidated damages or even lead to owners considering termination.
Ready, Set, Go?
With the right partner, you just might find that you are more prepared to compete for new bids then you think. With the The Partnership Account® from Colonial Surety, you will use our powers of attorney to issue your own bid bond—and you can do so right up to the last moment, incorporating last minute price fluctuations and supply substitutions. With Colonial behind you, you’re also armed with a complete, powerful online surety management system. In addition to issuing your own bid bonds, you can expediently order performance and payment bonds, run management reports, check your current and aggregate limits, view your underwriting profile—and more. Let’s get you growing!
Learn more and pre-qualify for The Partnership Account® here now.
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.