MBEX Has the Scoop

Check out our latest updates & findings below.

Have news to share? We’d love to hear it! Send your company hires, news, events and press releases to ah@mbex.org.

Page 4 of 10 pages ‹ First  < 2 3 4 5 6 >  Last ›

Feature on Home Page

10 Reasons Why Your Crew Should Hire Veterans

posted on 07.25.2023

When looking to add exceptional talent to your construction company or firm, don't overlook the immense potential of one particular group that stands above the rest --- veterans.

These brave men and women bring a unique set of skills and qualities to the table, making them exceptional hires and top-notch members of your team. As today is National Hire a Veteran Day, let's dive into 10 reasons why veterans are the perfect fit for your construction crew.

 

LEADERSHIP EXPERIENCE
Veterans have undergone rigorous training, instilling in them a sense of discipline and leadership. Using their communication skills, they know how to take charge and inspire their team to work together efficiently towards a common goal. Veterans also don't give up easily since they are used to high stakes. The building industry needs leaders to ensure projects are completed on time. In fact, 17.4% of veterans work in management, business or financial operations.

 

PROBLEM-SOLVING
Service in the military can be unpredictable and with its number of difficult challenges, so veterans must think on their feet and find creative solutions. Their resourcefulness and adaptability allow them to handle sudden changes and pick up new information quickly, making them invaluable in the ever-changing world of construction. In fact, adaptability is one of the top skills companies need the most.

 

STRONG WORK ETHIC
Veterans understand the importance of hard work and dedication, holding themselves accountable for their part in the group's mission. They are no strangers to putting in the extra effort to get the job done right and on time. Their determination could also be inspiring to their crew mates to work harder. Self-discipline is an important trait when dealing with tight deadlines.

 

ATTENTION TO DETAIL
Many business procedures involve careful planning and workload management. With any construction project, there are a dozen moving parts. Ordering of supplies, meeting with clients, creating design blueprints...the list goes on. Thankfully for a veterans' employer, precision is a hallmark of military training. Veterans carry this strategic thinking and attention to detail into every aspect of their work, ensuring that construction projects are executed with accuracy and quality.

 

TEAM PLAYERS
Collaboration is second nature to veterans who have worked in close-knit military units; everyone knows their role and works together. They understand how to take orders and are used to working with a diverse group of people, allowing them to seamlessly integrate into construction teams.

The military relies on debriefings, analyzing a mission afterward by assessing what happened and determining what could have been done to make things better for the next time. Veterans are able to take criticism and apply it to their work for improvement, to stay on top of their end goal, and ensure its a quality job completed.

 

KNOWLEDGE OF HEAVY MACHINERY OPERATION
Veterans are used to working with advanced machineries, such as bulldozers and cranes. A veteran's knowledge of operating procedure, maintenance and regulation are an incredibly valuable asset. When regular upkeep of machinery allows for it to last longer, for example, this is a huge advantage for a business (especially if you're a small operation!). 

 

SAFETY FOCUS
Safety is paramount in the military, and service members have had extensive training and are aware of safety protocols for both themselves, the welfare of their team and others. Veterans will bring this safety-first mindset to a working construction site. Their respect for precaution and protocol helps ensure the protection of employees, equipment and materials.

 

STRESS MANAGEMENT
The military teaches individuals how to handle high-pressure situations. A tight deadline or unexpected change to a projects' plans is plenty stressful, and veterans have been trained to remain calm under pressure, making them reliable and composed even during the most challenging of situations.

 

INTEGRITY & LOYALTY
When you hire a veteran, you gain a committed team member who will go the extra mile to achieve project success. They understand their actions impact others, and with this mindset, they are better at taking accountability when unexpected situations arise. 

 

DIVERSITY & INCLUSION
The military is a diverse environment, and veterans bring a wealth of experiences and perspectives to the construction industry. Embracing this diversity leads to enhanced creativity and innovation on the job.

 

------- 

 

Leadership, problem-solving skills, work ethic, and focus on safety can contribute significantly to the success of your projects. Moreover, a veterans' team-oriented approach, stress management, and unwavering integrity create a positive work environment that fosters productivity and job satisfaction.

So, if you want a construction crew that operates like a well-oiled machine while upholding the highest standards, consider hiring our nation's veterans. Not only will you be making a smart business decision, but you'll also be giving back to those who have already given so much for our country. As labor shortages continue, contractors and construction companies should consider hiring and benefiting from all a veteran has to offer. It's a win-win situation for everyone.

Construction Technology

Paving the Path Forward with Advancements in Smart City Construction

posted on 07.19.2023

In today's fast-paced world, the building and advancement of smart cities has emerged as a path forward for progress and efficiency. These interconnected urban areas, driven by digital technologies, present huge opportunities for the commercial sector.

As a builders exchange serving the needs of Minnesota's construction industry, we understand the importance of staying up to date with the latest industry trends. Here, we'll explore the cutting-edge advancements in smart city construction that hold great potential for commercial sector contractors.

 

Connectivity and Infrastructure
Connectivity is a key enabler when it comes to the world of smart cities. Commercial contractors continue to play a pivotal role in building the digital infrastructure required to support these cities. The deployment of 5G networks is quickly changing the landscape, relaying real-time data readings and powering the Internet of Things (IoT). This presents exciting opportunities for constructing smart buildings with integrated sensors and systems, for areas such as:

• Traffic flow, congestion detection at intersections, and parking lot availability;
• Environmental monitoring for air quality, humidity, temperature control, and noise pollution in different parts of a city;
• Smart meters for a building's electrical grid energy consumption patterns, peak demand periods, and overall performance; and
• Water management in water supply networks and irrigation systems for quality monitoring, identifying leaks, and measuring water consumption patterns.

These types of interconnectivity throughout a smart city, among others, create an environment where businesses can thrive through streamlined operations and enhanced productivity.

 

Sustainable Urban Planning
Smart cities prioritize sustainability, aligning perfectly with the industry's growing focus on environmental, sustainability, and responsible construction practices. Forward-thinking urban planning techniques focus on energy efficiency, waste management, and integration of renewable energy sources, such as solar power, wind power, geothermal heating, and capturing biogases.

Commercial contractors can contribute to the construction of green buildings equipped with such energy-saving technologies, supporting a more sustainable future that will also attract environmentally-conscious businesses and tenants.

 

Data-Driven Decision Making
Data holds the key to unlocking the potential of smart cities, and the commercial sector can greatly benefit from its insights. Contractors can leverage the vast amounts of data generated by smart city infrastructure and systems (as explored in the section titled 'Connectivity and Infrastructure') for predicting repairs and a city's needs in the future

Data-driven decisions can also keep jobsites connected and continually striding towards a project's completion by leveraging real-time data to improve project management, enhance safety, streamline operations, and increase productivity. Tracking equipment usage and location, material expected delivery dates, identifying potential project delays, assessing potential environmental risks, and sharing the latest project updates are all examples of how construction companies can stay on top of a project's progress while also delivering intelligent, efficient, and cost-effective buildings.

 

Citizen Engagement and Inclusion
Citizen engagement and inclusivity are also vital considerations. Commercial contractors have the opportunity to create spaces that foster community engagement and enhance the urban experience for residents and businesses alike.

By including smart technologies and design principles that prioritize accessibility, such as smart digital and interactive signage, real-time language translators, smart wheelchair systems for navigating urban landscapes autonomously, and voice-guided navigational assistance (to name a few), contractors can help in developing inclusive spaces that meet the needs of a widely diverse city. The more inclusive a commercial project, the higher the appeal to creating vibrant and thriving urban centers. 

 

-------

 

Commercial contractors can become a strong backbone in shaping and building technologically advanced cities. By embracing connectivity, sustainability, data analytics, and citizen engagement, there's no end to the transformative possibilities ahead for the urban landscape. 

Industry Stats & Reports

15 High Paying Construction Jobs in 2023

posted on 06.26.2023

The construction industry offers a plethora of opportunities for both lucrative and fulfilling careers. From carpenters to electricians to project managers and civil engineers, there is a wide range of what is considered a construction professional as well as the varying types of projects out there.

The skills needed depend primarily on the type of job being sought. For example, an electrician needs to have an aptitude for installing and testing electrical systems and wiring, while a carpenter or framer needs to have experience building the wood frames of houses or buildings. For more labor-intensive jobs, physical aptitude is an important quality. A certain comfort level and knowledge of operating power tools and heavy equipment are often needed as well. If working on the engineering side, skills required include design, math, and analytical skills. There are some essential skills that must be in your toolbox (pun completely intended) no matter what type of construction role you're striving toward, including strong verbal communication, the ability to read and interpret blueprints, an aptitude for adhering to all safety codes and regulations, and working with a team.

Whether pursuing a four-year degree, a two-year community college program or attending trade school, high-paying construction-related job opportunities are abundant. Inside this post, we'll explore different types of roles one might find on a jobsite, the key skills needed to be successful in that role, and the kind of work the job entrails. All have excellent earning potential and in-demand trades that can lead to prosperous careers.

Read on to discover the possibilities that await within the construction industry. And remember, this is just a small peek at the types of jobs found on any given commercial project!

 

1.) Drilling Engineer
$120,000-$214,000 per year
Drilling engineers plan and execute the drilling operations for oil, gas, and mining companies. Drilling engineers often extract minerals, metal ores, oil, and natural gas from mines, various landforms, and underwater. Responsibilities may include inspecting new sites, analyzing data on production levels, and troubleshooting issues. Additionally, their job is to assist other energy professionals with the cost and budgeting of heavy equipment and necessary tools for drilling.

2.) Construction Executive
$152,000-$200,000 per year
A construction executive oversees construction projects and serves as a strategic lead for the operations of a construction firm. Their job duties include developing a network of vendors, negotiating service level agreements, monitoring ongoing projects using key performance indicators, preparing budgets, recruiting and retaining a diverse team of qualified construction professionals, and collaborating with internal and external stakeholders. The responsibilities of a construction executive are to implement strategic initiatives that help a company scale while meeting client needs and achieving business objectives.

3.) Architect
$89,000-$166,000 per year
Architects are licensed professionals who design buildings. It is the job of an architect to oversee the development of a project from its initial vision to completed construction. They must adhere to building codes and safety regulations, while simultaneously satisfying the expectations of the clients who contract them. Architects touch every aspect of a building. They meet with clients to assess all fundamental requirements and restrictions for the project, and afterward create and draw up the initial concept and design. These proposed plans will include every detail of the building, from structural design to electrical systems to exterior aesthetics. There may be several iterations between an architect and a client before the final design is solidified. Once the plan is set, an architect often assists the client with acquiring a construction crew, and may even frequent the building site of that project to ensure that timelines and quality standards are being met. Throughout a project, an architect is instrumental in the selection of the building site, cost analysis prep and budgeting plans, and mediation between the construction crew and the client. It is the responsibility of the architect to make sure that everything runs smoothly and the vision is carried out correctly and efficiently.

4.) Chief Estimator
$114,500 - $156,500 per year
A chief estimator is primarily responsible for making financial budgets and estimates to bid on a construction or design project. People in this job take into account many factors when making an estimate. These factors include the cost of building materials, cost of labor, cost of transportation, fees, tariffs, and profit margin. The chief estimator may also use software analysis, or analysis of previous estimates, to help them make predictions.

5.) Director of Construction
$107,000- $155,000 per year
A director of construction provides general supervision of construction-related projects. Duties consist of meeting with clients to discuss progress and handling various tasks at the job site or office. A director of construction is often in charge of determining manpower requirements for a project and ensuring that goals are met. Other common responsibilities are to review budgets and contracts as well as coordinating the schedules of subcontractors. Qualifications typically include a degree in construction management or a similar field of study and significant experience.

6.) Structural Analysis Engineer
$95,000-$152,000 per year
A structural analysis engineer tests equipment, buildings, and manufactured products to determine whether or not they meet performance goals, standards, regulations, and requirements. One may perform a stress test on various materials, monitor construction data, evaluate equipment or design blueprints, and otherwise help to ensure the final product is structurally sound. Most structural analysis engineers focus on building construction, but some work with aircraft, cars, or other heavy equipment instead. This job is highly time-sensitive because construction often cannot proceed until structural analysis checks are done. So, the ability to work quickly and efficiently is essential to success in this role.

7.) Stress Engineer
$101,000-$149,500 per year
As a stress engineer, you make models using various materials and apply stress to test how much strain the structures can handle. Your duties are to conduct a detailed analysis of your test cases and to report to other engineers, architects, and facilities managers. You can find stress engineer jobs in many industries, including aerospace and aviation, automotive, medical, nuclear power, and plastics. Much of this kind of work takes place in a laboratory, where time is spent building prototypes from different materials to figure out which materials and what designs can withstand the most stress.

8.) Pipeline Engineer
$94,000-$148,500 per year
The primary job duties of a pipeline engineer are to build, maintain, and repair oil and natural gas pumps, stations, pipelines, and pipeline transportation systems. Pipeline engineers have excellent mathematical and technical skills and come from a variety of engineering backgrounds, such as civil engineering, mechanical engineering, and materials engineering. Pipeline engineers typically work in the oil or natural gas industries, but positions are also available in chemical manufacturing and public utilities.

9.) Land Development Manager
$96,500-$148,500 per year
The job of a land development manager is to oversee the development of property from the initial planning phase through the completion of residential, commercial, or industrial construction. This role ensures that each plan meets all regulatory requirements, creates and manages a development schedule, helps survey the land to ensure all reports are accurate, and manages relationships with contractors. Land development managers often provide regular reports to property owners about the expected schedule and budget of a project, resolve any problems that occur with the development process, and perform any other tasks as required. Land development often takes several years from beginning to end, and depending on the needs of the employer, this type of manager may oversee several properties simultaneously.

10.) Senior Electrical Estimator
$100,500-$142,500 per year
As a senior electrical estimator, the job is to manage an estimating department and provide bid proposals accurate enough to make purchase orders. These estimates must take factors like labor, materials, databases, and updates into account to produce the most accurate price possible. Senior electrical estimators often evaluate work sites, help prepare documents for projects, track market pricing, and negotiate with architects to provide pre-bid services. When not examining a site, senior electrical estimators typically spend time working in an office and talking with other senior employees. On occasion, they may need to work overtime to meet bid response deadlines.

11.) Senior Estimator
$98,000-$142,500 per year
Senior estimators are in charge of compiling accurate cost estimates for a construction or manufacturing project. This role's main job duties involve evaluating the scope of a project and developing a financial summary that stays within the budget and scheduled time frame required. They often work closely with designers and engineers to create these estimates. The primary career qualifications include a bachelor’s degree, usually in construction management, civil engineering, or building science, as well as strong analytical and critical-thinking skills. Most companies provide on-the-job training so employees gain experience while learning about the company’s specific policies.

12.) Senior Piping Designer
$95,500-$133,000 per year
Senior piping designers supervise the design and technical execution of pipelines, sewer or plumbing systems, and other similar projects. In addition to drafting and engineering duties, responsibilities involve determining the scope of the project, budgeting, and consulting with other engineering and building experts to ensure that the project layout conforms with the overall design of the building, structure, or system.

13.) Project Superintendent
$84,000-$123,000 per year
Project superintendents manage construction sites and all activity occurring within that area. They oversee all logistics, including material delivery, equipment, personnel, safety, and the construction schedule. Responsibilities may include ensuring that all safety protocols are in compliance with local, state, and federal regulations. Other duties include communicating with senior management regarding timelines and budgets. Work is done on-site in an office, using organizational skills to collaborate with contractors, supervisors, inspectors, and others involved with the project. Safety is a primary concern, and project superintendents make sure all workers are adequately equipped, certified, and follow proper safety procedures.

14.) Architectural Engineer
$45,000-$129,500 per year
An architectural engineer's job is to oversee the planning and construction of buildings, especially during early developmental stages, to ensure architectural and structural integrity. Their work may also encompass building renovations and remodels. Their main duties are to analyze building plans and supervise construction with a focus on functionality, structural stability, and safety. Some architectural engineers focus on a specific area, such as lighting or HVAC, while others work on an entire project. The job involves close collaboration with construction crews and project stakeholders, especially architects and project supervisors.

15.) Piping Engineer
$100,500-$139,000 per year
Piping engineers design and supervise the building of piping systems that transport gas, oil, water, or sewage. Job duties include surveying work sites and evaluating environmental stress, determining project scope and cost, drafting layout plans and blueprints, and selecting materials for pipes and components for the construction of piping systems. Piping engineers typically use Computer Assisted Design (CAD) software to draft blueprints. In addition to technical and drafting skills, they also need strong project management skills to run projects efficiently from start to finish.

 

------- 

When it comes to pursuing a career in construction, be it in the trades, engineering, design, or another facet of the industry, there are many high-paying options! The trades offer an opportunity to gain practical skills and enter the workforce relatively quickly. If you have a passion for construction but also desire financial stability, pursuing a construction-related degree can be an ideal choice for paving a path roward a successful and rewarding future.

In the end, choose a degree that aligns with your interests and strengths. With the right education and skills, you can build a rewarding and prosperous career in this dynamic field.

NOTE: Salary ranges were sourced from Zip Recruiter and are meant to offer a general sense of a roles' earning potential. With any job, the pay scale will vary from company to company as well as wherever the job is located. 

Worksite Safety

Ensuring Safe Working Conditions Amid Poor Air Quality

posted on 06.19.2023

Another day, another air quality alert.

As construction professionals, we are no strangers to the challenges posed by nature. However, when the air quality is severely impacted by external factors (such as wildfires in Canada), it becomes very necessary to prioritize the safety and well-being of our teams. Over the month of June, there have been numerous reports from the National Weather Service highlighting the up-and-down air quality in Minnesota (we had the worst air quality in the country last Wednesday, June 14), making it crucial to adopt appropriate measures and utilize specific types of gear to mitigate the risks.

Here, we discuss the importance of safe working conditions and provide guidelines, along with recommended gear, for construction professionals operating outdoors during times of awful air quality.

 

Understanding the Risks
Wildfire smoke can contain harmful pollutants and particulate matter that can significantly impact air quality. These fine particles can penetrate deep into the respiratory system, causing respiratory issues, eye irritation, and exacerbating existing health conditions. Prolonged exposure to poor air quality can have severe consequences, and it's best to be proactive in addressing these risks.

 

Monitor Air Quality
Stay updated with the latest information from the National Weather Service or local authorities regarding air quality index (AQI) readings. Utilize reliable air quality apps or websites to track real-time data for your specific area. 

Some popular air quality apps include:

• AirNow - The official app from the United State Environmental Agency (EPA) provides real-time AQI information and forecasts for various locations.
• Plume Labs - This app offers personalized air quality forecasts, real-time pollution apps, and health recommendations based on your location.
• BreezoMeter - Breezeometer provides hyperlocal air quality data, along with a user-friendly interface, to help you stay informed about the air quality conditions in your area.
• IQAir - Known for its air purifiers, IQAir also offers an app that provides real-time air quality information, personalized health recommendations, and historical data analysis.
• PurpleAir - This app utilizes data from a global network of air quality sensors to provide real-time air quality information, including particle pollutions (PM2.5 and PM10) levels.

Please Note: It's recommended to check your local region for specific air quality apps that may be more relevant and accurate for your area.

 

Adjust Work Schedules
Whenever possible, consider rescheduling outdoor activities to periods with better air quality. If the work cannot be postponed, plan tasks in a way that minimizes exposure during peak pollution times.

 

Personal Protective Equipment (PPE)
Important pieces of PPE on days with low air quality should include Respiratory Protection with N95 or higher-rated masks, which offer effective filtration against harmful particles present in wildfire smoke. Fit-testing should be conducted to ensure a proper seal. Eye Protection, such as safety glasses or goggles, should be encouraged to protect the eyes from smoke and irritants. Depending on the nature of the work, consider providing gloves for Hand Protection against hazardous materials and irritants.

 

Create Safe Zones
Establish designated areas with clean air where workers can take breaks from the poor air quality. These zones should ideally be indoors or protected by effective air filtration systems.

Signs to watch for among your workers for potential illness due to the poor air quality:

• Respiratory Symptoms - coughing, wheezing, shortness of breath, or chest tightness.
• Irritated Eyes, Nose + Throat - watery or itchy eyes, a runny or congested nose, and a sore or scratchy throat.
• Headaches and Dizziness - persistent headaches, dizziness or lightheadedness.
• Fatigue + Weakness - unusually tired, weak or a general lack of energy not typical.
• Allergic reactions - frequent sneezing, nasal congestion, skin rashes, or hives.
• Worsening of Existing Health Conditions - illnesses such as asthma or chronic obstructive pulmonary disease (COPD) can easily become exacerbated.

Please Note: Signs may vary from person to person, and the severity of symptoms can also differ. 

 

Hydration and Rest
Encourage workers to stay well-hydrated and take regular breaks in a clean environment, helping reduce fatigue and ensuring their overall well-being.

 

Education and Awareness
Conduct regular safety meetings to educate your team about the risks associated with poor air quality and the importance of adhering to safety guidelines. Encourage open communication and address any concerns or questions they may have.

 

-------

The health and safety of our workers should always be our priority, especially when faced with challenges such as severe air pollution. By closely monitoring air quality, encouraging workers to seek medical attention if they're feeling unwell, and utilizing specific types of gear such as N95 masks, safety glasses, and gloves, we as an industry can ensure a safer working environment.

Remember, proactive steps taken today will go a long way in safeguarding the well-being of our teams and mitigating potential health risks. Stay informed, stay safe!

Worksite Safety

Six Actionable Tips for Ensuring Trench Safety in Minnesota

posted on 06.12.2023

June has been declared National Trench Safety Month by the National Utility Contractors Association. For Minnesota's construction professionals working literally in the trenches, safety must be a priority due to the unique challenges posed by the state's soil conditions and climate.

Within this post, we will explore actionable tips specific to Minnesota for construction pros to create a safe working environment when dealing with trenches.

 

1.) Understand Minnesota's Soil Conditions
Minnesota's diverse geography presents varying soil types, including clay, sand, and loam. Familiarizing oneself with the specific soil conditions found on your jobsite will help your crew assess the stability and potential risks associated with trench work. Consult soil engineers or geotechnical experts for guidance on shoring and shielding techniques appropriate for the soil composition. Minnesota's Geospatial Information Office offers information about county-level and statewide digital data sets describing the soils of Minnesota.

provides information about county-level and statewide digital data sets that describe the soils of Minnesota. Status information and links to detailed descriptions of the characteristics and limitations of the data sets are provided.

2.) Account for Extreme Weather Conditions
Minnesota experiences harsh winters and heavy rainfall, which can impact trench safety. Plan trench work to avoid freezing temperatures whenever possible. During the rainy season, implement proper drainage systems to prevent water accumulation. Monitor weather forecasts regularly and take necessary precautions to maintain a safe working environment.

3.) Comply with Minnesota OSHA Regulations
Familiarize yourself and your crew with the Occupational Safety and Health Administration (OSHA) regulations specific to Minnesota. Ensure that your site adheres to the state's excavation and trenching standards, including proper slope angles, benching, and shoring requirements. Stay updated on any changes in regulations and incorporate them into your trench safety protocols.

4.) Engage in Ongoing Training and Certification
Encourage your workforce to undergo training programs that address trench safety. Organizations like the Minnesota Safety Council offer specialized courses on excavation and trenching safety. Encourage workers to obtain certifications such as Competent Person Training to enhance their knowledge and expertise in trench safety practices.

5.) Collaborate with Local Utility Companies
Before starting trenching work, contact local utility companies to identify the location of underground utilities. Collaborate closely with them to ensure proper utility markings and to avoid accidental utility strikes during excavation. Remember to follow the guidelines set forth by Minnesota's "One Call" system to protect underground infrastructure.

6.) Stay Informed about Local Safety Resources
Minnesota provides various safety resources and organizations to assist construction professionals in promoting trench safety. Familiarize yourself with resources such as the Minnesota Department of Labor and Industry's Construction Codes and Licensing Division, which provides guidance on safe excavation practices.

 

By focusing on trench safety with a Minnesota-specific approach, construction professionals can effectively mitigate risks and ensure the well-being of their workers. Adhering to state regulations, understanding local soil conditions, and leveraging available resources will enable you to create a safe working environment. Prioritizing trench safety is crucial for project success, worker protection, and overall industry advancement in the Land of 10,000 Lakes.

Industry Stats & Reports

Top Risks, Causes of Loss and Growth Drivers for the Construction Sector in 2023

posted on 05.09.2023

While the long-term future outlook of the construction industry is positive, the industry is also facing a number of challenges such as the prospect of recession, the shortage and rising cost of materials, the shortage of skilled labor, a spike in procurement costs, compromised supply chains and more.

Every year, risk-management experts in the construction sector (and a host of other industries as well) rank their top risks for the year ahead as part of an annual Allianz risk barometer report. In 2023 business and supply chain disruptions and natural catastrophes ranked first and second respectively among top perils for the construction industry. Why are these two perils of greatest concern to industry professionals? Simply put, larger values are at risk for companies.

 

BUSINESS INTERRUPTIONS
Construction costs are soaring because of inflation as well as prices for energy and raw materials. Replacement is costing more and taking longer. Materials can also often be unavailable due to logistics, shipping and supply chain bottlenecks. The end result is that any property damage and business interruption losses are now likely to be significantly higher than they were before COVID-19 began.

 

NATURAL CATASTOPHES
An AGCS analysis of construction insurance industry claims around the world over a five year period shows that natural hazards are already the second more expensive cause of loss for businesses, accounting for almost 20% of the value of claims (second only to fire and explosion at 27%) and are also the most frequent cause of losses. Construction sites need to give more consideration to the impact of extreme events, such as wildfires, flash flooding, and landslides in their risk assessments.

With climate change increasing the frequency and severity of these kinds of events, the costs of property damage and business interruption are expected to escalate. Business continuity plans should be regularly updated and tested. It is also increasingly important that businesses work with insurers to ensure they have accurate and up-to-date valuations of their assets so they can be fully reimbursed in the event of any future loss.

 

DRIVE FOR NET ZERO
New technologies, innovative delivery methods and greener, leaner practices mean the construction industry is poised to embrace and benefit from more sustainable approaches. Such innovation is necessary in the face of mounting pressures; Not only are investors and consumers voicing louder concerns about environmental, social and governance (ESG) issues, but legislation, regulation and reporting requirements are also evolving quickly in many areas around the world.

The switch to sustainable energy and the adoption of modern building methods will transform the risk landscape, with radical changes in design, materials and construction processes. In order to meet carbon reduction targets, rapid adoption will likely be required, meaning close cooperation between insurers, brokers and clients, to share data and experiences to help underwrite what can be prototypical risks. 

Deployment of new technologies can also bring new risk scenarios such as potential defects or unexpected safety or environmental consequences; but they can also bring benefits. For example, modular construction can mean less construction waste, shorter timelines and reduced disruption to the environment. However, it also raises concerns about potential repetitive loss scenarios. Continued risk monitoring and management controls will be key while design review and on-site quality controls are essential to safeguard cost-effective project execution and delivery outcomes.


-------
 

To transform successfully, sector players must be bold in traversing challenges, confidently overcoming uncertainty and laying the foundations for future success and sustainability. Collaboration is key when it comes to exposure and innovation, and insurers such as AGCS have the capacity, engineering expertise and underwriting experience to apply to transition activities, whether this is supporting green hydrogen facilities, sustainable construction projects, offshore wind farms, or something yet to be discovered.

Page 4 of 10 pages ‹ First  < 2 3 4 5 6 >  Last ›