By: Kirk Rathjen, Regional Vice President, Contract Underwriting
With construction economy experts’ prediction of a hard market coming soon, common sense tells us while we are hoping for the best, we should prepare for the worst. Contractors should ask themselves, do I have a viable plan to become smaller?
Construction and surety have grown strongly over the past 10 years with plenty of capacity, keeping the market soft for several years, but it is always cyclical, so it’s just a matter of time until we start leaning towards a hard market. Some data analysts expect 2019 to be a cooling off period from the growth rates we experienced in 2018, slowly affecting construction activity. They predict “a deceleration” that takes us to a hard market in 2020.
What should contractors do to be prepared for a hard market?