Make hay while the sun shines

by Clair D. Urbain

Industry soothsayers predict that commercial construction will remain strong through the rest of 2006 and well into 2007. After all, there is a lot of infrastructure to be built to meet the demands of the hot residential market of the last several years.
This is backed up by research we have conducted among industry experts and Contractor Tools and Supplies readers. We share their thoughts with you in our cover story, “2007 outlook,” that starts on page 12 in the printed version of this magazine.

Contractors I have talked with over the past year are quite aware their businesses are at the top of the demand cycle, and if there is any time to be making money, it is now. The old adage, “Make hay while the sun shines,” has never been more apt than it is now in most sectors of commercial construction.

Although business is hot and, in many parts of the country, getting hotter, now is also the time to invest in your business to assure its viability when the commercial and multi-family residential market ultimately turns south.

One of the best ways is to figure out what you’re very good at doing vs. the tasks that you’re not so good at completing. What types of jobs make you money and how much money do they make? Conversely, what types of jobs are less profitable and why?

Soul-searching your core competency in good times can help you focus on those jobs where you have a competitive advantage. After all, if your labor and capital are limited, doesn’t it make sense to take on only those jobs in which you are most likely to make the most profit?

Getting to the bottom of your bottom line takes a different mindset than bidding for business and getting it.

We can help you think more strategically about your business at our Lean University – Construction seminar near Chicago O’Hare Airport October 24, 2006.

This one-day event will expose you to Lean concepts that can help you understand the constraints in your operation and how to address them. Lean experts from the South Carolina Manufacturing Extension Partnership, which has adapted Lean manufacturing principles to construction, will help you get started on your Lean journey. Three commercial contractors will also share their Lean experiences with attendees.

If you invest a day in this seminar, we are confident you will be paid back with a list of ideas that may help you operate your business in a more Lean and profitable fashion.

Go to page 18 in the printed version of this magazine for more seminar information and go online or pick up the phone to register. Seats are limited, so make sure you get a spot by signing up today! I look forward to seeing you there. Let’s make some hay while the sun shines…

Published in the September/October 2006 issue of Contractor Tools and Supplies magazine.

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