As the construction industry slowly edges its way back to something resembling normal levels of activity, a new set of concerns are on the minds of the segment's insurance carriers.
Construction activity is up slightly in small pockets of the country, namely Northern California, the Boston area and throughout Texas. And while residential projects are said to be booming in these areas, rumors of similar activity in the commercial construction market are just that: rumors. Very few carrier executives can point to hard evidence of an actual rise in projects on the commercial side.
Further, construction companies are facing some new challenges as they attempt a return to form: an increase in bigger, combined projects, which in some cases are leaving smaller contractors out of the running; inadequate staffing, as highly skilled workers who were let go during the recession have gone on to other industries; and the result of a rising risk in subcontractor defaults.
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