To increase sales and expand business, some contractors may consider entering a new market niche that requires different equipment, strategies, and procedures. Other contractors may look into offering their current services to a broader geographical area. If you have tried either of these strategies and had no problem selling the work but plenty of trouble realizing profits, it's time to look at the reasons why and consider a few solutions. The answer to greater profits lies not in our ability to obtain more work but rather in our ability to adapt to the needs and demands of a new market.
For many concrete contractors, it seems that all projects taking placing in late fall end up being "rush" jobs to beat the cold weather. But even contractors who don't work in areas with the potential for bad winter weather find that jobs get pushed and squeezed at the end of the year. Some projects are budgeted to be completed by year-end, so customers press their contractors to finish on schedule. The need to occupy building, retail, or parking space can also push a customer's hot button.
When it comes to construction, he who has the plan has the control. Obviously, for any project (especially a large one), contractors should produce detailed plans, such as critical path management charts, that identify each phase of a construction project. Unfortunately, contractors seldom devote the same effort to creating weekly plans. And if they do create such plans, contractors seldom use them as their primary planning and communication tool.
Contractors, both small and large, make poor hiring decisions every day. Falling into the hiring pit is easy to do if you aren't careful. Maybe you're in a hurry to fill a position, or you feel you must grab who you can because the labor market is so tight. We have found that many contractors are poorly prepared to interview candidates no matter what the position--concrete finisher, secretary, or truck driver.
The outlook for finding good workers in the construction industry appears to be dismal, according to statistics released by the Construction Industry Institute predicting a 75% shortage of people entering the construction workforce. It's no wonder, then, that finding and hiring workers has fast become the No. 1 problem for many contractors. Clearly, these desperate times require rigorous recruitment strategies. To track down your next new hires, you must be willing to use a variety of recruiting techniques, even if your efforts require extra time and money. Here are some good strategies to try.
