Topic Thread

Subject: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

1.  Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 20 days ago

I am speaking at the Carolinas chapter of CFMA later this month. Part of my presentation deals with risks facing the industry and managing them.

 

Please send me the top 5 risks you see facing your company in the next 12 months.

 

Thanks

 

Frank

 

elgo-logo2

L. Franklin Elmore

Attorney

felmore@elmoregoldsmith.com

                                                                  _____________                             

Elmore Goldsmith, P.A.

55 Beattie Place, Suite 1050 (29601)

Post Office Box 1887 ǀ Greenville, SC  29602

T (864) 255.9500 ǀ F (864) 255.9505

vCard ǀ Website ǀ Blog

 

CONFIDENTIAL & PRIVILEGED  Unless otherwise indicated or obvious from the nature of this communication, the information contained herein is attorney-client privileged and confidential information/work product. The communication is intended for the use of the individual or entity named above. If the reader of this transmission is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error or are not sure whether it is privileged, please immediately notify us by return e-mail and destroy any copies, electronic, paper or otherwise, which you may have of this communication.

 

 

 



2.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 19 days ago
​I am on the surety side of the business as an agent.  However some of the things that seem universal for my clients are:

1.  Demand for skilled labor
2.  Drug use - many can't get past the drug screening.
3.  Onerous contract terms that can't be complied with.
4.  Payment issues --- time lags
5.  Continuity - how to fund buyouts, etc.  and doing it in time to initiate the change

Hope this helps!
Karen Mummert
McConkey Insurance
Past President of Central PA CFMA

------------------------------
Karen Mummert AAI
E.K. McConkey & Company
York PA
(717) 755-9266
------------------------------



3.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 18 days ago
Top Five Risks:
1. Retaining supervisory field labor
2. Payment terms continuing to extend-now as far as 120 days
3. Unreasonable contract terms
4. Major safety incident causing injury.
5. Could only think of 4!


------------------------------
Jeffrey Lynch CPA
Chief Financial Officer
Chewning & Wilmer, Inc.
Richmond VA
(804) 565.3925
------------------------------



4.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 17 days ago

One of the biggest risk we have seen and foresee is 2nd tier subs placing liens due to non-payment.

Over the past 2 years we have seen three long-standing companies go out of business, leaving unpaid subcontractor invoices, even with guaranteed funds management on one job, how do you prevent a subcontractor from just fabricating their paperwork and leaving off subs and material vendors they are using?



------------------------------
Susan Peck BA Accounting/Business Admin
Controller
Nason Construction, Inc
Wilmington DE
(302) 529-2800
------------------------------



5.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 17 days ago
From a union GC doing business in NY our biggest struggles are...

- Outdated fall from height regs driving up the cost of insurance
- High MWBE goals
- Subcontractors failing to pay their union obligations and/or employees
- Recruiting talented foreman/supers to replace our aging workforce
- Union pension obligations

------------------------------
Samantha Nickerson
CFO
Manning Squires Hennig Co., Inc.
Batavia NY
------------------------------



6.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 19 days ago
1) Lack of Skilled Labor
2) Unfavorable Contractual Language
3) Subcontractor Default
4) Poor Change Order Management
5) Tie : 5a) Employee Drivers  5b) Non-payment from Client

New upcoming risk : Inadequate adaptation of new technology, or technology disruptions.

------------------------------
David Miller CCIFP, CRIS, CTP
Cfo / Treasurer
Jokake Construction Services, Inc.
Phoenix AZ
(602) 224-4573
------------------------------



7.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 19 days ago
1/ retaining and recruiting skilled labor
2/ Manage bid process to avoid mistakes (verifying scope, project details and environment)
3/ Safety on the job site
4/ Adopt or strengthen use of technology for project management
5/ Manage data so it is accesible to right people at the right time

------------------------------
Fred Guitton
Chief Revenue Officer - Redteam Software
(407) 781-1500
fguitton@redteamsoftware.com
------------------------------



8.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 18 days ago
Hope this is helpful...

1.)  Labor Shortage.  As a commercial roofer, not just trying to find labor to install roofs but to find qualified installers that minimize the risk of installing (leaks from bad details, torching, running a hot kettle, etc.)
2.)  Not embracing technology.  Important to evolve the use of technology to maximize processes to reduce overhead & identify fraud.  What has worked in the past not necessarily means will work as the business community evolves going forward.  A business must work to be the best in the industry to stand out from the pack and proudly make it known to its employees, customers, and vendors.
3.)  Failure to proactively situate the business for the next downturn.  Develop internal strategic planning teams.
4.)  Absence of leadership skills development within the company
5.)  Reduce fraudulent activity within a business both internally against the company and to the customer in overstatement of costs plus profit.  This industry has this reputation.
6.)  Lack of succession plans and not grooming employees for future manager/leader positions within the business
7.)  Failure to address internal culture and value of its employees for the long term because this industry thinks in the "now."

------------------------------
Judith Coker
AboutTime Specialist
Progressive Services, Inc.
Phoenix AZ
(602) 452-8500
------------------------------



9.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 18 days ago
​Interesting that all the responses so far are from various parts of the country, different trades, etc. but yet have a universal theme.

------------------------------
Karen Mummert AAI
E.K. McConkey & Company
York PA
(717) 755-9266
------------------------------



10.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 11 days ago
​Yes.... common theme for sure.

------------------------------
Stephen Hadley
Controller
Quigg Brothers, Inc.
Aberdeen WA
(360) 532-3449
------------------------------



11.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 18 days ago
1.  Skilled labor shortage (pass drug test and railroad background check, have to travel).
2.  Keeping up, training and maintaining Safety performance.
3. Subcontractor management (contract terms, performance, managing default risk).
4.  Contract terms (delayed payment terms, new customers that approve and pay slow)



------------------------------
Janel Davidson
Controller
Coleman Industrial Construction, LLC
North Kansas City MO
(816) 741-8383
------------------------------



12.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 17 days ago
1. Skilled and non-skilled (laborer) shortage.  We are a specialized contractor (Railroad) and have a constant struggle hiring and retaining employees for our industry. Due to our type of work, our customer base is multi-state and many do not want to travel as well, in addition to passing drug tests and getting the Railroad safety cards.
2.Complete lack of technology on project management/estimating side.  Everything is spreadsheets and paper-based. This results in an inability to see what is working and what isn't, and in terms of estimating, for example, there is a lack of consistency.
3. Cash flow in terms of ever-increasing time lags between invoicing and payment.  Net 60 seems to be the norm anymore and often extends to 90.  These are terms in the contracts/POs which often are not negotiable.
4. Healthcare costs and ability to provide health plans to employees
5. Did I mention hiring/labor shortage?!

Thanks

------------------------------
Donna Armstrong
Accounting Manager
Fritz-Rumer-Cooke Co., Inc
COLUMBUS OH
(614) 444-8844
------------------------------



13.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 16 days ago
​We handle a number of contractors in the NYC region and the issues we see our clients facing are -

  1. Labor shortage - specifically as the boomers retire there is not enough new talent entering the industry
  2. Succession/transition planning
  3. Non-union migration
  4. Increased compliance regulations - specifically in the MWBE, safety and contractual language space
  5. Not using advances in technology enough to improve their  processes

I hope that helps, happy to discuss any of these at greater length.

~ C

------------------------------
Carl Oliveri CPA, CFE, CCIFP
Partner/Construction Practice Leader
Grassi & Co.
Jericho NY
(516) 659-6371
------------------------------



14.  RE: Survey 5 Biggest Risks Facing Your Company in the Next 12 Months

Posted 14 days ago
​1. Cyber Security/loss of data
2. Loss of large client
3. Economic downturn
4. Talent Shortage
5. Major jobsite accident

------------------------------
Ron Heemstra
Controller
Interstates Companies
Sioux Center IA
(712) 722-1662
------------------------------