Certain Specialty Trade Contractors Have Lower Failure Rate
Kegler Brown Construction Newsletter June 1, 2009
As current economic conditions place unusual pressure on the construction industry, it is interesting to see which segments have seen the lowest failure rates.
A recent D&B study found that general building contractors had a lower failure rate (.30%) than heavy construction firms (.35%) and specialty trade contractors (.34%). However, certain specialty trades had a significantly lower failure rate, with the two (2) lowest being water well drilling (.22%) and plaster, drywall, insulation (.28%). Kegler Brown is pleased to serve both trades by representing their trade associations as General Counsel, including the Association of the Wall and Ceiling Industry (AWCI), Ceilings & Interior Systems Construction Association (CISCA), and National Ground Water Association (NGWA).
These statistics may suggest that core trades with lower capital demands have a greater chance to survive current financial challenges facing the industry.