What ‘Wait and See’ Is Doing to Safety and Equipment

Budgets are tight and uncertainty continues to loom for the construction industry. As home builders are looking for ways to cut costs amid tariffs and nervous home buyers, the majority (97%) of business leaders are delaying upgrades and maintenance to limit costs.

This deferment can lead to major safety concerns on the jobsite. Michael Teng, associate vice president of regional products, pricing, and underwriting for Sentry Insurance, works with nearly 1,500 contractors across the country. Teng shares his concerns about equipment safety and how equipment inspections can help below.

Why are construction executives delaying upgrades to equipment? Are tariffs a factor?

In today’s construction environment, many business leaders are delaying upgrades to equipment, systems, and facilities—not because work has slowed, but because uncertainty has made decision-making harder. Economic volatility, supply chain disruptions, and shifting tariff discussions all contribute to a climate where long-term investments feel riskier.

According to our recent C-Suite Stress Index survey, 67% of business leaders report elevated stress levels, primarily driven by economic uncertainty. As a result, 97% say they’re deferring upgrades or maintenance in some form—whether to equipment, facilities, or technology.

This “wait and see” approach is understandable. It helps manage uncertainty and preserve flexibility. But it can also introduce new risks. Delayed maintenance and aging equipment may increase the chance of breakdowns or safety incidents—especially in an industry that is highly active.

Even as some companies hesitate to take on new construction, we’re seeing strong momentum in renovations and infrastructure improvements—particularly in retrofitting older buildings with modern systems and green technologies. Jobsites are still active, and the demands on crews and equipment are still high.

While 42% of business owners expect revenue to be flat or decline this year, nearly half (48%) are asking employees to work longer hours or take fewer breaks. Another 43% are increasing productivity expectations for existing staff.

That means the same equipment and people are under more pressure, with less room for error in an industry that already works to tight budgets and timelines. Taken together, this can increase risk exposures—for employees, operations, and the business overall.

What are some of the unseen risks?

Delaying maintenance or upgrades increases the risk of equipment breakdowns and exposes workers to avoidable safety issues. Think of it like keeping a personal vehicle: skip oil changes, ignore worn tires, or dismiss engine warning lights, and sooner or later, you’re facing a much bigger—and more expensive—problem.

Construction machinery relies on regular inspections and proactive maintenance to still be safe and operational. Without it, you risk unexpected equipment failure that can stall a project, sideline crews, or cause injuries.

A simple but effective strategy is to require daily equipment checks at the end of each shift. These inspections can catch early signs of wear—like degrading tires, unresponsive control buttons, or worn brakes. They’re especially important as modern equipment integrates more electronic components, such as backup cameras and collision-avoidance systems.

This applies to both leased and owned equipment, though stakes may be higher with owned assets. Leased equipment often includes built-in repair or replacement schedules and support, while owned machinery requires closer oversight to avoid costly downtime. In both cases, consistent inspections help detect problems early—before they disrupt operations.

Routine checks also help business owners plan replacements around schedules and budgets—instead of reacting to sudden failures. That’s not just good risk management—it’s a smart way to stay in control in uncertain times.

How can crews maintain safety of machinery without stretching budgets?

Two of the most effective, cost-conscious ways to manage machinery-related risk are through routine inspections and proper employee training.

Planned maintenance helps find wear before it leads to failure and minimizes downtime. Inspections don’t require much time but do require consistency. That consistency gives important insight into equipment conditions and helps control repair costs and timelines.

Training is just as essential. Construction sites are inherently risky, and the equipment is powerful and complex. Sites often include excavations, intersecting walkways and vehicle paths, and tightly staged materials. Without adequate training, workers may use machinery in unsafe or unintended ways.

We’ve seen this firsthand. One company filed a claim after an untrained employee drove a forklift down a wet, metal incline. The forklift—designed for flat concrete—slid and caused an accident. Proper training might have prevented it.

Training should include standard behaviors, many of which mirror safe driving habits: avoid using mobile devices, stay alert to pedestrians and surroundings, and never use equipment under the influence of substances that impair judgment or reaction time.

Today’s jobsites may be evolving, but the fundamentals of safety remain the same. A strong safety culture—grounded in training, inspections, and preventive maintenance—helps businesses avoid claims, protect teams, and keep projects on schedule and within budget.

Can you share advice on routine equipment inspections?

Routine inspections work best when embedded in a proactive, safety-first culture. That’s especially important today, as business owners face economic pressures while asking more of their teams and equipment.

Our latest survey shows that 82% of business owners plan to increase safety investments this year—many in response to rising workforce expectations. Nearly half (49%) also see improved safety as key to employee retention.

Here are practical ways to strengthen or start an inspection program:

• Proper diagnosis and repair: Certified technicians can accurately fix problems, keeping equipment running safely and efficiently.
• Preventive maintenance: Trained personnel understand how to prevent breakdowns and extend equipment life.
• Avoiding costly damage: Inadequate repairs by unqualified staff can lead to bigger issues.
• Maintaining warranties: Many warranties require certified servicing. Not complying could void coverage.
• Reducing liability: Documented servicing by qualified staff helps limit liability in case of incidents.
• Demonstrating standards: Clients and partners expect professionalism. Certified servicing reflects a commitment to quality and operational excellence.

In a time of financial pressure and labor constraints, a robust inspection and maintenance program—backed by records showing qualified servicing—gives business owners more control where it matters most. It protects staff, projects, and the bottom line.