“Sterling Risk Sentiment Index” Indicates Construction Companies Bullish, But Still Worried About Risk Exposure Even as Profit Margins Improve


Contact: Mitch Leff, Leff & Associates, (404) 861-4769,

“Sterling Risk Sentiment Index” Indicates Construction Companies Bullish, But Still Worried About Risk Exposure Even as Profit Margins Improve

Companies Surveyed Are at a “5.2” on the Sterling Risk Sentiment Index; Adequate Staffing Cited As Top Risk to Business Success in 2015

ATLANTA, Feb. 20, 2015 – A new survey shows that while the economic numbers are improving in many areas, construction companies are still worried about their risk exposure, with respondents reporting their “risk sentiment” at a 5.2 (on a scale of 1-10) on Sterling Risk Advisors’ first-ever Risk Sentiment Index.  Even as construction companies report their profit margins are improving, they report that access to adequate staffing is the No. 1 risk to their businesses moving into 2015.

Sterling Risk Advisors is a full-service risk brokerage firm with strong expertise in the construction industry. This is the first time the firm has surveyed construction industry risk sentiment.

“Our survey clearly shows that most construction contractors are in better shape today than a year ago, with higher margins, more contingencies in their project budgets and a neutral risk profile,” said Doug Rieder, president, Sterling Risk Advisors. “We’d love to see less perceived risk in the Sentiment Index, and we’ll be watching to see how the industry responds to the labor challenges clearly identified.” 

Rieder also noted: “With the cost of commodities falling precipitously these past several months, it will be interesting to see if this positive impact on construction cost inputs helps to alleviate the stress from the labor market.”

The survey noted other key issues of concern including the economic slowdown, cash flow issues, increased competition and government regulation.

Highlights from the Sterling Risk Sentiment Index:

●      Top risk issues:

  1. #1 is staffing, having enough employees to handle projects (44%)
  2. #2 is the economic slowdown (27%)

●      77% of respondents say they have formal strategies in place to manage their risk, but half say they don’t have those strategies clearly written down

●      84% say their profit margins are better today than a year ago

●      92% say their pipeline of opportunities is better today than a year ago

●      69% have reviewed their risk management plans in the last 12 months

●      65% say they are able to build adequate contingencies into their project budgets

●      55% say their company’s exposure for risk is lower than a year ago

The Sterling Risk Sentiment Index surveyed 84 top executives in Atlanta’s construction industry using The survey was conducted between December 2014 and January 2015.

Moving forward, Sterling will be surveying the construction industry’s risk sentiment on a semi-annual basis, which will allow it to follow and compare local industry trends.

About Sterling Risk Advisors

Sterling Risk Advisors is a full-service Atlanta-based risk management and insurance brokerage firm serving the commercial, professional and personal needs of clients across a diverse spectrum of industries.  The firm works with companies focused on medical and other professional services, construction, transportation and logistics, manufacturing, real estate and technology.  Product offerings include all forms of commercial and personal property & casualty insurance, employee benefits and surety bonds.

For more information about Sterling Risk Advisors, please visit: or call (678) 424-6500.