Along with tremendous opportunity, infrastructure investments in the United States and around the world are anticipated to exacerbate the labor shortage and set off new risks as well. Industry excerpts share their predictions. What are yours?
Bound for Growth, But…
Not surprisingly, construction in the infrastructure sector is predicted to be on a fast track for growth. Experts anticipate “an annual average growth rate of 5.1% globally during the period from 2020 to 2025, driven by unprecedented levels of government stimulus, including the $1.2 trillion infrastructure act in the U.S. and the European Union’s 723 billion euro Recovery and Resilience Facility…”
Of course, it is also anticipated that growth will exacerbate supply chain challenges and labor shortages. Ever better leveraging of technology across the life cycle of construction projects, as well as investment in a “mindset shift” about careers in the trades are going to be critical. Construction Dive reports that modular construction is also likely to play an increasingly important role. For example, shipment of modular components to projects that are short of onsite laborers can provide some breathing room. Leveraging fintech services creates breathing room in construction companies too. In fact, you can boost your finance and operations efforts with complementary support from Colonial Surety. In addition to giving qualified construction companies a surety line of credit in writing, The Partnership Account® provides construction company owners a wide range of helpful features and benefits, including:
- Control of bidding and bonding, online and in real time.
- Powers of attorney to seal and issue your own bid bonds—in minutes.
- Fast, direct, confidential bid bonds—no middleman.
- Direct access to performance and payment bonds on a customized dashboard.
- Real time tracking of bids and work on hand.
- Immediate access to Colonial’s lead underwriter as new opportunities emerge.
- A private Owner’s Dashboard to view surety lines, adjust work on hand, analyze bids—and drive growth.
In the United State and abroad, investment in renewable energy will be a driver of tremendous opportunity—and is anticipated to create new challenges too. For example, Construction Dive reports that “upscaling clean energy will also bring new risks for construction, such as exposing high-value components to harsh offshore weather conditions. Turbine blade damage or gearbox failure can cost double or triple the amount for an onshore turbine, while repairs to undersea cable, which weigh thousands of tons and require special ships to lay, can take more than a year…”
Good To Know: Tech Support
The $1.2 trillion infrastructure bill (aka The Infrastructure Investment and Jobs Act or the IIJA) has specifically earmarked funds to propel the use of technology throughout the construction lifecycle. As Construction Dive reports: “The Infrastructure Investment and Jobs Act (IIJA) includes money for advanced digital construction management systems and related technologies. The program is funded at $20 million per year, for a total of $100 million, over five years.”
Don’t forget to leverage Colonial’s tech support too—it’s available now, and our prediction is: it’s really going to come in handy. Bid bonds, performance bonds and payment bonds have long served to advance and safeguard public building projects across the country. That doesn’t mean the process of obtaining bonds has to be old-fashioned, though: Colonial Surety’s a direct writer—so we’ve sped everything up. We underwrite construction companies based on the power of their financial statements, giving qualified builders power of attorney to issue their own bid bonds, and more. Let’s think big—and act fast—together. Complete the pre-qualification for your written surety-line of credit and The Partnership Account® services today—and receive, for free, Dun & Bradstreet scores. Pre-Qualify Today Right Here.
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. Our customers trust us too—they’ve awarded us 4.8 on TrustPilot. According to one of our happy partners, the best thing about The Partnership Account® services is: “you get to produce Your Own Bid Bond without having to go to an Agent every time you need one.”