2020 Vision: Construction and the New Financial Downturn

Travelers umbrella logo.
By Travelers
70 minutes

Chapter #1  Chapter #2  | Chapter #3  | Chapter #4 | Chapter #5 | Chapter #6 | Full Webinar Video

The new financial downturn may look different from past recessions, but we can gain insights from construction firms that weathered past storms better than others. In these videos, Stan Halliday, Travelers Chief Underwriting Officer, Construction Surety, and David Hombach, Chief Underwriting Officer in Bond & Specialty Insurance, look at real industry data from the Great Recession to gain insights and identify approaches to help your construction firm get through this latest financial downturn.

Chapter #1

A Pre vs. Post COVID Environment in Construction

The construction environment is a tale of two worlds, according to David Hombach, Chief Underwriting Officer in Bond & Specialty Insurance.

Before March 2020, the construction industry was enjoying one of the most robust markets in history. Then the market changed precipitously, virtually overnight. 

Learn more about how the market shifted.

Chapter #2

Clues to the Future: Architecture Billings Index

A look at the Architecture Billings Index, which an economic indicator of building inventory, offers insight into how certain segments have been affected by COVID-19.

Learn more about factors that could affect their recovery.

Chapter #3

A Changed Landscape – Current Market Conditions

Bringing back manufacturing onshore, developing new infrastructure and building healthcare facilities may help drive construction, post-COVID-19. Better subcontractor and workforce availability overall are also positive signs.

Here more opportunities and risks that could affect the market’s recovery.

Chapter #4

Failures Have Many Causes

A single project going wrong can have a significant impact on a construction company, especially in today’s environment. An analysis of Travelers construction customer losses incurred over time explores factors that have led contractor failures, from overextension to excessive debt.

See some of the other potential causes of failure.

Chapter #5

What Can Construction Companies Do? It all comes down to baseball

Even the best hitters in baseball appreciate good pitches. Stan Halliday, Travelers Chief Underwriting Officer, Construction Surety, says the key for contractors in this economy will be to wait for the “good pitches” that involve a familiar type of work and location, rather than taking a risk on an unfamiliar project or procurement method.

Learn more about what constitute a “fat pitch” for contractors.

Chapter #6

It's All About the Fat Pitches...

Working where you have been successful, and doing what you know how to do, could help contractors choose the right projects in a difficult economy. Contractors will want to choose teams who have completed similar types of work successfully, rather than taking on unfamiliar projects that introduce new risks.

See more about choosing the right projects.

2020 Vision: Construction and the New Financial Downturn


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