Alfa Builders
The Upside of the Downturn – How the Current Economy Benefits the Construction Industry
Is There an Upside?
These days, it is difficult to come up with a positive spin on the state of the economy and specifically the construction industry.
But there is a thin silver lining on a few of these gray clouds that are worth mentioning.
Two that come to mind are competition in pricing and the being able to hand pick more quality subcontractors.
Lower Prices for Materials and Labor
The obvious advantage of the down market is in price. There are a few exceptions, but in large part there are deals to be had in the market place for goods and services.
Some of the items might have been over priced to begin with, but most are just cheaper because the market is flooded with an abundance of supply.
If you are a savvy general contractor, you can reap some definite rewards by shopping around to see which vendors are hungry and need to get rid of some inventory. Any savings can help! Especially since owner’s budgets are also getting tight during these lean times.
Better Access to Quality Subcontractors
A second advantage that doesn’t come to the top of your mind when thinking about this economic crisis is that the lower quality subs are fading into the sunset.
During the “fat years” when homes and commercial buildings were flying up all over the place, these second or third string subs were able to get plenty of work because the “good guys” were all tied up.
Many of us in the contracting business have been forced to use subcontractors who we knew were not A+ quality and then had to spend more effort and time over the course of a project doing lots of babysitting to ensure that the job was done correctly.
Now that times are tough and work is scarce, those subcontractors who can produce a much higher level of quality are once again available. So there are much fewer diapers to change on the jobsite, and the result is a much better finished product for the owner.
So even in tough economic times, there are a few high notes that we can focus on.
Those of us who are general contractors need to take advantage of these opportunities and differentiate ourselves from the competition as a result. It will help us have a leg up on other builders if we do so.
If you can think of other significant benefits not mentioned here, please leave a comment or feel free to contact me.
