Each time I drive by a flooring store, granite store, pipes showroom or specialist’s truck, I wonder how they are doing. What actions have they required to cut expenses? How long can they keep going if conditions don’t improve?
The majority of markets are not as difficult as others, some are suffering. I heard a fascinating term that describes our extended economic slump: the “brand-new regular.”
How do building pros navigate in these “new regular” conditions that have stuck around way past short-term? Clearly, this slump is not a “dip,” “correction” or “downturn.” Like an unwelcome, messy houseguest, these conditions are here to stay for a while.
Rather than continue expecting a financial rebound to save the day, lots of pros are changing their businesses to reflect the reality of our “brand-new typical” conditions. But how they are altering? Clear Seas Research performed a study not too long ago. The outcomes were fascinating.
This survey amassed 364 participants, so it certainly touched a nerve. After analyzing the outcomes, we determined five methods building and construction pros are employing to make it through the “new normal.”
1. Cut Overhead. 38% of participants say they lowered personnel, 28% state they reduced hours, 16% cut advantages and 16% cut compensation. Remarkably, 38% likewise stated they are “not concentrating on reducing overhead.”
2. Decrease Benefits. The 16 % who are cutting benefits are hacking 17 various locations: 401k strategy, 43%; medical insurance coverage, 39%; vacation pay, 32%; dental, 29%; personal/sick pay, 29%; extra benefits, 23%; holiday pay, 23%; family medical leave, 21%; flexible spending accounts, 21%; worker help programs, 20%; life insurance and AD&D, 20%; bereavement time, 14%; and five types of COBRA or impairment protection, 12% each.
3. Reduce Work Vehicle Expenses. These motorized workhorses will not be getting the very same pounding they withstood when times readied. 40% of respondents are improving route mapping; 39% are driving less; 30% are seeking fuel discounts; 21% are utilizing GPS to improve driving efficiency; 17% are purchasing vehicle upkeep; 13% will equip less inventory; and 13% will change to smaller lorries.
4. Boost Marketing. We asked this open-ended question: “What changes will your company make in light of the present market conditions?” 38 participants wrote that their company is increasing its marketing and advertising. Another 14 indicated they would tap into new markets with brand-new services/products, 7 said they would “get more aggressive,” and 4 wrote that would increases sales efforts. While some respondents are concentrated on cuts, it was stimulating to see that many are being proactive in attacking their “new normal” market.
5. Employ New Services. Another open-ended question supplied more inspiring results. We asked, “What brand-new service or products will your company offer to become more competitive?” Participants’ responses demonstrated a high level of creativity, flexibility and resourcefulness. Here are a few of their comments.
” Switched to more green products.”
” Bid smaller sized tasks.”
” Add cleaning services after setups.”
” Bid more services in our quotes.”
” Selling service agreements.”
” Switched to IP phone services.”
” Offering rewards to clients for purchases.”
” Adding a handyman department.”
” Bought our own delivery truck.”
” Offering radon testing.”
” Added apartment improvement and insurance work.”
” Bring in a new line of siding”
” Added solar setups.”
” Added midnight electrical experts.”
” Added engineering services.”
” Added IAQ, UVC lights.”
” Add certifications for geothermal, solar.”
” Added hardwood repair work and services.”
” Adding drain, jetting, video inspection services.”
” Adding cork, bamboo and laminates.”
” Expanding to regional clients instead of regional.”
” Adding fireplace units.”
” Installing outside wood heaters.”
” Adding granite installations.”
The list of services being introduced by building and construction pros this year was rather fantastic. For those of you proactively establishing new abilities and service chances, the future (albeit scary) looks extremely amazing. Please go to www.roofingadvanced.com for a lot more details of the state of the market.