Challenges Facing Construction Leaders

THE BIGGEST RISK TO YOUR CONSTRUCTION COMPANY ISN’T LABOR — IT’S LEADERSHIP. Everyone’s talking about the trades shortage. But here’s the truth most execs avoid: We’re not just short on people. We’re short on leaders. We’ve got foremen who never got mentorship. Supers promoted too fast. Young talent leaving because no one’s investing in them. And the cost? Turnover Lower quality Delays Burned-out crews It’s not a manpower crisis. It’s a development crisis. If you want to protect your company’s future: Start training field leaders early Build real mentorship into your structure Create a culture where respect and accountability coexist Because here’s the bottom line: You can have the best tools, tech, and talent — but if you don’t have leaders in the field, you’ll lose everything. It’s time to stop managing projects and start building people. #ConstructionLeadership #ExecutiveStrategy #SkilledTradesCrisis #Mentorship #TalentRetention #WorkforceDevelopment #LeadershipMatters #BlueCollarFuture

Words of wisdom from two wise men. Not to be confused with THE three wise men At the Ariat Dirt World Summit I was reminded by Randy Blount and Herb Sargent that good times can be really bad times for contractors. "More firms go out in good times than bad times...a bad job takes you down...need to grow right" Construction firms face numerous challenges, and going out of business is often the result of a combination of factors. Here are 10 reasons construction firms fail: 1. Poor Cash Flow Management Insufficient working capital to cover operational expenses, especially when projects experience delays in payment. Overextension on multiple projects without adequate financial planning. 2. Underbidding Projects Winning bids by underestimating costs, leading to slim or negative profit margins. Failure to account for unforeseen expenses, changes in scope, or cost overruns. 3. Lack of Leadership and Management Skills Poor decision-making by leadership, including ineffective project management. Lack of strategic planning or succession planning for key roles. 4. Labor Shortages Difficulty in attracting and retaining skilled labor, leading to project delays or poor quality. High turnover rates increasing recruitment and training costs. 5. Economic Downturns Reduced demand for construction due to economic recessions or market downturns. Over-reliance on a single market segment or geographic area. 6. Inadequate Risk Management Failure to identify and mitigate risks such as safety issues, legal disputes, or weather delays. Lack of proper insurance coverage leading to catastrophic financial losses. 7. Excessive Debt Overleveraging through loans or credit to finance growth or equipment. Inability to meet debt obligations due to project delays or economic conditions. 8. Poor Project Execution Failure to deliver on time, on budget, or to quality expectations. Inefficiencies in processes and lack of technology adoption to streamline operations. 9. Legal and Regulatory Issues Non-compliance with building codes, labor laws, or environmental regulations leading to fines or project shutdowns. Contract disputes with clients, subcontractors, or suppliers. 10. Overexpansion Rapid growth without adequate infrastructure, staff, or financial stability. Diversifying into unfamiliar markets or taking on projects beyond their expertise. If you don't like those, how about these • Starting for the Wrong Reason • Failure to Advertise and Market: • Lack of Differentiation: • Unwillingness to Delegate: • Unprofitable Business Model: • Underestimating the Competition: Each of these is known and fixable. There are experts in each of these areas to help you. Which one is the biggest threat to your firm?

Everyone loves talking about the 🌊 “silver tsunami.” 🌊 You’ve probably heard the pitch: millions of baby boomers retiring, many of them business owners, opening up once-in-a-generation opportunities to acquire well-run, cash-flowing businesses in the trades. Sounds great, right? But here’s what doesn’t show up on the spreadsheet: When you own and operate a services company, the real day-to-day challenge isn’t just strategy or systems. It’s hiring. It’s acquiring talent. It’s showing up every single day to push the business forward. Case in point: I recently had 5 of 8 candidates no-show for management-level interviews. Not apprentices. Not part-time labor. Not temporary assignments - Leaders. Everyone wants to talk about growth, scale, acquisitions—but far fewer talk about what it takes to build a team that actually makes that possible. Let’s stop pretending that entrepreneurship in the skilled trades is just a math problem or an east to execute “entrepreneurship through acquisition” strategy. These are operating businesses with real people and real challenges—every day. I love the work and our teams but someone has to check the highlight reel fueling these conversations at some point right? Yes, I still firmly believe in the opportunity ahead. But let’s be honest: it’s not passive, and it’s not easy...if it is easy I'd package up the playbook and start selling it now! You want to build something in this space? Roll up your sleeves. - - - - - - - - - Curious to hear from others in the field: - Are you seeing the same trends in hiring and retention? - What’s working for you when it comes to building high-caliber teams? #Leadership #SkilledTrades #ConstructionBusiness #SilverTsunami #Operations #HiringChallenges #TalentAcquisition