ForConstructionPros.com

After the usual January convention trips, I'm happy to say the outlook for construction in 2007 looks positive. There are exceptions in certain areas and segments of the market, but even those are not bad.

According to at least one major industry study, overall construction spending for 2007 is expected to increase just over 5%. Even though residential construction - which represents 50% of construction spending - is expected to remain flat, the anticipated increase in nonresidential and nonbuilding spending will more then offset residential's impact. Conversely, the overall increase in construction spending will be enough to keep material costs moving upward, and will put a strain on the cost and availability of skilled workers.

Contractors across the country - except for certain parts of the Midwest - report they expect business to be mostly above average, with the hottest markets in the Southwest. As far as equipment goes, it appears contractors will replace at least 10% of their fleets in 2007. Fewer contractors, however, plan to increase their fleet size.

Manage your fleet effectively
Overall, it looks like 2007 will be a good year for most contractors. Defining a "good year" assumes those contractors have done a good job managing their equipment fleets. Can you say that about your company? Can you say the person responsible has done a good job on your behalf this year? Do you get the information you need to determine whether your fleet is being effectively managed?

Let's face it, proper management of your equipment fleet - whether you own it or rent it - is one of the most important controls you need in place to manage costs and time schedules. Your equipment has to be available when and where you need it - with the appropriate attachments - and must be properly utilized while on site. It doesn't pay to have workers standing around because the equipment isn't there, or to have equipment unused because you are not ready for it. In either case, you are losing time and dollars.