U.S. construction spending—a key indicator of future work—fell for the third straight month in May 2025, down 3.5% from a year earlier, as nonresidential contractors felt the squeeze from higher interest rates, volatile material costs and tariff uncertainty.
According to Sentry’s 2025 C-Suite Stress Index, 67% of business leaders felt more stressed than in 2024, mainly due to economic uncertainty. Many have delayed capital expenditures like equipment and cybersecurity upgrades and stretched resources, asking employees to work longer hours or take fewer breaks.
This wait-and-see approach can help businesses stay flexible, but it also creates risks. Leaders, supervisors and employees who recognize and address these issues together can avoid costs that outweigh any short-term savings.
DELAYED EQUIPMENT UPGRADES
97% of executives are delaying facility and equipment updates due to cost pressures or scarce resources. This often means relying longer on aging tools and machinery: cranes with worn cables, forklifts with less responsive brakes or excavators lacking proper warning systems.
Contractors delaying upgrades can strengthen maintenance by scheduling more frequent, detailed inspections that:
- Track and log known performance limitations
- Use certified technicians for servicing rather than relying only on in-house fixes
- Identify assets that may not be safe to operate beyond a certain threshold
- Budget for phased upgrades or leasing options to modernize high-risk equipment without major upfront costs
It’s important to remember that maintenance isn’t modernization. Even well-maintained equipment becomes riskier over time. Components wear down, safety tolerances narrow and the lack of newer technologies can limit a crew’s ability to prevent failures.
Delaying upgrades also means relying more on manual monitoring and operator judgment. This can raise risks when jobsite conditions change quickly. For example, equipment without modern automated warning systems may not alert operators to mechanical problems or pedestrian blind spots. Older models also are less likely to connect with site-wide safety systems or smart tracking technologies, making it harder to enforce safety protocols across large or complex builds.
DEFERRED CYBERSECURITY UPDATES
The risk of cyberattacks grows as more construction companies use digital tools for scheduling, billing, procurement and communication, and as they handle sensitive data like vendor banking information and employee records—prime targets for cybercriminals.
Meanwhile, about 47% of executives are delaying technology and cybersecurity upgrades, leaving critical systems more exposed as threats grow more sophisticated and costly.
Recent incidents show attackers exploiting outdated systems to intercept communications and trigger fraudulent fund transfers. Once sent, funds are often lost.
Cybersecurity lapses can delay projects, erode client trust and trigger legal scrutiny. As with physical safety, proactive steps help. Construction executives can strengthen internal controls to reduce cyber risks. Steps include:
- Limit access to sensitive systems and financial tools based on role and need
- Require multi-step verification for all high-value transactions
- Audit bank access and vendor directories for signs of fraud or irregularities
- Ensure critical software is regularly patched and updated
- Require dual-authorization for payments and transfers over a certain amount
- Provide basic cyber awareness training for office and project staff handling sensitive data
STRETCHING LABOR CAPACITY
Many teams today are being asked to do more with less. Eighty-one percent of executives admit employees are taking on tasks beyond their formal roles and training. Nearly half admit they’re asking staff to work longer hours or take fewer breaks. While this can help maintain output and keep projects on schedule, it also may increase safety concerns.
When team members are rushed through onboarding, placed in unfamiliar environments, expected to operate equipment they haven’t fully trained on or push through longer shifts, the risk of accidents may rise. Even basic missteps—using tools improperly, misunderstanding site protocols or misjudging load limits—can have serious consequences.
Consider a forklift operated on a wet metal incline—where it was never designed to be—because the operator didn’t have the training to recognize the risks. The machine slides down the surface during loading and pins someone between two pieces of equipment. Accidents like this can become more likely when roles and work demands outpace readiness.
The issue extends beyond equipment operation. Fatigue from long shifts, mental overload and reduced oversight compound risks. Safety depends on repetition, clarity and preparation, all of which erode when labor capacity is stretched too far.
To help protect workers and operators during lean periods, companies can:
- Limit task assignments to individuals who have been properly trained and cleared for those responsibilities
- Monitor and rotate workloads to reduce fatigue and repetitive strain
- Use subcontractors or temporary labor to handle overflow or fill skill gaps
- Reinforce site protocols around equipment use and hazard recognition
Also keep in mind that there are state and federal statutes that employers must follow, and that govern overtime compensation, meal breaks and maximum hours worked.
INSURANCE IMPLICATIONS AND LONG-TERM RISK
Economic pressures may force tough decisions, but contractors who understand the trade-offs are better positioned to balance safety, maintenance and risk. This is important in an environment where 74% of executives say they aren’t fully confident their insurance coverage is adequate and 42% are actively looking to expand it.
Additionally, 82% plan to invest more in worker safety. This signals growing understanding that insurance is only part of a complete risk management strategy.
A thoughtful approach to workloads, maintenance and training is key to preventing accidents that delay projects. Economic uncertainty may change how resources are allocated, but safety remains non-negotiable. Prevention costs are almost always lower than the cost of an incident—and can also affect insurance coverage.
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