By Leonard Toenjes

Q: The economy is down, projects are being scaled back or put on hold and everyone has that worried look on his/her face. What’s your prescription for contractors during economic hard times?

A: In the uncertainty of the current market, accurate industry information is one of the most important medicines I would prescribe for good future health. There are several treatments related to your company’s long life that you should consider.

A holistic approach to gathering information is your best way to start.

Look for information not only about the current market you are in, but look at closely related markets or markets you have ignored for some reason or another. While there are many market segments that are negatively impacted by current economic conditions, there are still needs for construction services.

Study information about various market sectors such as building, institutional, educational, manufacturing, energy, water systems, rail, bridges, roadwork, public works or the many other market segments. Look for opportunities in new places that could pertain to your company strength and service model that you may be overlooking.

Getting several opinions is good for your future health also. Study economic data available from a variety of reliable national, regional, and local sources. Stay in touch with your chamber of commerce and local association community to learn of upcoming business opportunities and growth markets they are targeting for future development.

The quality of information you obtain is also directly related to the quality of the source.

Don’t go for the voodoo doctor who is telling you what you want to hear or providing more editorial comment than conclusions based on valid data. Spend some money to buy top quality, surgically specific data that can be quickly useful without having to sort through information from all the quacks.

Use Information

With information in hand, work with your entire company team to take a fresh look at two elements of company health.

First, look for growth opportunities across the market to find see where you may most likely generate the income you need to sustain company health. See if there are partnerships you have ignored in the past that could be initiated to create synergies for new business development.

Second, engage your staff in looking for ways to cut costs within current operations. Front line workers often can offer really meaningful suggestions for savings that get overlooked from behind the boss’ desk. Look for new twists in technology, staffing, or other opportunities that will help you perform work more economically. Again, association affiliations or vendor opportunities may be available to lose some weight in some areas that can make your company more nimble and impact the bottom line also.

Finally, stay in touch with your bank. If you don’t have a bank or lending institution you have worked with closely or can have faith in, find one. Be sure to have regular, meaningful dialog with a reliable financial institution to keep track of where financing opportunities or development opportunities are occurring.

Do you have questions on construction human resources, safety or management? E-mail them to Leonard Toenjes at ltoenjes@agcstl.org or craig_barner@mcgraw-hill.com. If Len picks your question, he will answer it in a future issue of Midwest Construction.)