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CONSTRUCTION KNOWLEDGE BLOG

March 1, 2013

Friday Musings
Filed under: Industry outlook — Tags: — nedpelger

I continue to be optimistic about the trend in construction work in America. I believe in the sustainability of growth because I hear good stories all around me. Hopefully, the politicians will get some minimal agreements done that succeeds in not destroying the recovery.

Yesterday I got a call from someone who wants two 90,000 sf buildings built quickly. That’s a nice call to receive, but the logic behind the call tells the rest of the story. The project was previously approved, permitted and several similar buildings constructed. The 2008 financial collapse drove the project into default. As it’s ready to resurrect, another large contractor had the project but called the owner and stated they are just too busy to take on another project.

When was the last time you heard about contractors being too busy to take on new work? Generally, it’s been a while. Many of us have stayed fairly busy, but not swamped.

I have a couple of projects moving forward that were approved and permitted a few years ago. These projects don’t have to wait the normal six to nine months till construction starts…they go right to the front of the line. That’s another way this construction recovery can ramp up quicker than the experts predict.

On the other side, I spoke with a trade contractor friend yesterday who hasn’t made any money in a few years. He’s just barely hanging on. My last projects with his firm, though, weren’t too satisfying. His guys bitch and don’t work hard. He has a tendency to annoy my customers. So, while I like this guy, his business prospect don’t look so good even in the recovery.

It’s important to remember that we have no work by right. Every project, every opportunity that comes before us, should be treated with respect. I love to have fun with everyone I work with (including poking at my customers), but I don’t forget that they can easily choose someone else. I strive to keep over-delivering in every meaningful measure.