Comments on: Diversify for stability http://www.forconstructionpros.com/interactive/2007/11/13/diversify-for-stability/ Bringing you the voice of the construction equipment owner. Sun, 22 Nov 2009 06:14:09 +0000 http://wordpress.org/?v=2.3.3 By: James Duncan http://www.forconstructionpros.com/interactive/2007/11/13/diversify-for-stability/#comment-606 James Duncan Wed, 30 Jan 2008 13:36:11 +0000 http://www.forconstructionpros.com/interactive/2007/11/13/diversify-for-stability/#comment-606 No doubt about it- the residential bubble has burst. We are seeing housing drop and our area is the #1 in California for foreclosures. This reminds me of the Dot Com debacle- hyper inflated prices righting themselves and people being surprised when the bubble bursts. It does not surprise me. I feel for those who have lost or are losing0- but this is how the market weeds out those who are not here for the long run. The "fly by night" contractors will be eradicated for the time being. And the ones who do what they promise for a fair price will have work and survive. Hopefully you have built a good customer base because the competition is fierce, particularly when the home building contractors are moving into the public works arena which is what we are seeing now. They are really taking some jobs at below cost and I think they are in for a very rude awakening. Public works contracting is very unforgiving of even the slightest miscalculations. You must be diversified- those who have cut their teeth on one area and stayed there are really going to have trouble in So Cal this year. The larger paving contractors are in both public and private. They will be the ones who not only survive but profit. The smaller guys have to look for other avenues to turn a profit. Sweeping, striping, crack fill, even pressure washing. Hauling away trash if your dump trucks are sitting- what ever it takes to get your crews working. And if your estimator is not up to par- time for him to hit the trail. There are a lot of good people looking for work. James No doubt about it- the residential bubble has burst. We are seeing housing drop and our area is the #1 in California for foreclosures. This reminds me of the Dot Com debacle- hyper inflated prices righting themselves and people being surprised when the bubble bursts. It does not surprise me. I feel for those who have lost or are losing0- but this is how the market weeds out those who are not here for the long run. The “fly by night” contractors will be eradicated for the time being. And the ones who do what they promise for a fair price will have work and survive. Hopefully you have built a good customer base because the competition is fierce, particularly when the home building contractors are moving into the public works arena which is what we are seeing now. They are really taking some jobs at below cost and I think they are in for a very rude awakening.

Public works contracting is very unforgiving of even the slightest miscalculations. You must be diversified- those who have cut their teeth on one area and stayed there are really going to have trouble in So Cal this year. The larger paving contractors are in both public and private. They will be the ones who not only survive but profit. The smaller guys have to look for other avenues to turn a profit. Sweeping, striping, crack fill, even pressure washing. Hauling away trash if your dump trucks are sitting- what ever it takes to get your crews working. And if your estimator is not up to par- time for him to hit the trail. There are a lot of good people looking for work.

James

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