Running a successful construction company isn’t easy. The industry is full of risks can challenges that can lead to failure. According to data from the Bureau of Labor Statistics, of the 69,296 private construction firms that started operation in 2001, 56% were still around three years later, 26.6% made it to year 10, and only 17.2% were still in operation 20 years later. That’s a failure rate of nearly 82.8%. Let that sink in for a bit.
There are literally hundreds of reasons why construction companies fail and have to close up shop. When construction companies fail, it’s typically not caused by a single issue.