How you approach 2008 depends on what you do, where you do it and how good you are at it. Once you figure out where you stand in these areas, it's time to start planning for the coming year. No matter what, you should definitely have your 2008 business plan completed within the next three to four weeks.

Numerous speakers at the recent AED Executive Forum stated there was nothing on the horizon to indicate a material reduction in construction activity. They did, however, emphasize that overall local conditions could be different, and the type of work could generate different outcomes. These differences were well documented based on discussions with construction equipment dealers. Many were considerably down in equipment sales, and some were at similar levels as 2006. Some were even experiencing business increases.

Both analysts and market forecasters indicated the financial results for 2006 and 2007 were affected by market anomalies related to a bloated housing market, which resulted from aggressive financing programs. Once these unique circumstances correct themselves, it should be back to business as usual.

Analyze budgets
The question becomes: What is "business as usual" for you? If 2006 was an anomaly, with 2007 the start of an adjustment period, where do you go from here?

No matter what condition you find yourself in currently, you have to start thinking about 2008. One speaker at the Executive Forum suggested ignoring the anomaly and planning 2008 using 2004 and 2005 sales levels. For those of you still going strong, you have to assess whether this level of activity can be maintained for the next 18 months. If so, prepare the 2008 operating budget assuming any sales correction will be minimal.