At the 2009 Associated Equipment Distributors (AED) Executive Forum, a couple different speakers mentioned the "new normal" as it applies to the construction market. While they were talking largely in terms of equipment sales, the concept of redefining what's normal can apply to other aspects of construction, as well. The challenge lies in recognizing and accepting the changes in the market and adjusting your business to accommodate them.

Many of you have already taken steps to rationalize your business - both in terms of equipment and personnel assets - to adjust to the decline in construction activity. The question now is: How low should you go? While certain market sectors are seeing signs of life, others aren't expected to see an upturn for months to come.

If you haven't already, it's time to take a good, hard look at the market outlook for your territory. How likely are you to see improvement in construction activity in the next six to 12 months? If you anticipate improvement, what types of construction (e.g., road building, public works, etc.) are likely to see the greatest volume? Do you have the crews, equipment and expertise to effectively bid on this or related work? Figure out what steps you need to take to be prepared, then be willing to rethink who you are as a company and whether you can, or can't, afford to tailor your business to the available work.

If flat or decreased construction activity appears to be the "new normal" in your territory, it could be time to make some tough choices. Should you downsize further to "right size" to the shrinking market? Or are there opportunities to expand into new territories? If so, what are the risks involved, and do you have the necessary resources to ensure successful market entry?

Construction equipment fleets in the U.S. are aging, and at some point, the cost to maintain certain equipment in your fleet will exceed the cost of a new purchase. What is your plan to replace them?