FMI Corporation, the leading provider of management consulting and investment banking services to engineering and construction, infrastructure and the built environment, is pleased to announce the release of the 2018 AGC/FMI Risk Management Study. The research was conducted in collaboration with AGC’s Surety Bonding and Risk Management Forum to capture contractors’ perceptions of risk and opinions on how the U.S. E&C industry will change in the coming years. Specifically, authors investigated what industry sectors and trades are most likely to undergo fundamental disruption; how businesses are innovating today and the top risks they face; and, ultimately, how these industry trends will impact E&C risk management in the future.
Key highlights of the report include:
-88% of respondents had encountered risks related to craftworker shortages, and 67% had encountered risks related to the shortage of field supervisors.
-92% of respondents had found design documents to be less complete than they were in the past.
-Nearly 40% of respondents planned to bring design work in-house, and, of those, over 80% had either completed the process or planned to do so within the next three years.
-Two-thirds of respondents expect to see more change in the construction industry over the next five years than in the last 50.
-Respondents predict that health care, commercial/office space and education will experience the most disruption over the next five years; more specific areas of disruption will include or involve concrete, curtain walls (envelope and glazing), electrical work, steel erection, and mechanical and structural engineering.
-More specifically, relating to risk management, respondents consider fee erosion and cost escalation to be the most significant of the “soft costs” of risk.
And finally, risk management must evolve, because many of the significant risks confronting today’s contractors are not insurable.
Click here to access the “2018 AGC/FMI Risk Management Study.”