Are we on the path to recovery?

Are we on the path to recovery finally? Has the industry rebounded and are profits returning?
I posted this comment on my LinkedIn status as well as on facebook and got two completely different replies to the question.

The first response was from a supplier of an industry product who said that the recovery had arrived. The dead calm of last January and February has been replaced by a sudden rush this year where she and I both were experiencing an influx of calls, opportunity and revenue.

The second response from Linked In was from a general contractor who agreed that the industry had picked up, however she warned that profitability had not. Further through the exchange I made an assumption that appears to be correct, many generals had taken on work to keep the doors open and business running with little profit above the costs of doing business.

I have talked with many companies who had sharpened their pencils last year dealing with an increase in competition for jobs that would normally see 5 to 8 bidders explode to see 12 to 20 in some cases. Is the abundance of bidders going to disappear any time soon? I do not think so. Will the pricing structures of the jobs change? I think they will, as more work become available companies will not be so tight on the bottom line and allow profit to creep back in. Those who continue to price at only keeping the doors open will reach a breaking point and have to make a decision taking less jobs for the same amount of profit as doing double the work.

The recovery and profits are returning at different speeds across southern Ontario. As a member of several construction associations I see some are recovering faster then others that seem to be just hanging on. The strength of the region is being reflected in the number of members who are renewing as well as new businesses joining. The associations like many companies have to branch out into new areas and different ways to appeal to members while remaining a relevant.

Is your business starting to recover? Were you able to survive the last year and take the spots occupied by previous competitors who have failed? Share your stories and success in the next issue of the GTA Construction Report.

GTA Construction Report

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Ontario Construction Report February 2010 Issue

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Proud new member of the Orillia & District Construction Association

This is my first year as a member of the Orillia & District Construction Association. After doing a great feature profile on the association last Fall I decided to join in the association and provide additional coverage on what is going on in the most northern part of my territory.

Only 20 minutes past Barrie where I serve as a director on the Barrie Construction Association Board, I look forward to spending more time in the area with trips to Orillia.

Watch for a great article in the February issue of the GTA Construction Report with Trevor Walker from the R & F Construction.

Family in Construction

If you are a member of a family business, and work within the architectural, engineering and construction community, you have unique stories of how your business were formed, dealt
with changes in the industry and grown to where you are today; often seeing several generations involved with the day to day operations.

This special report on “Family in Construction” will look at the evolution of the industry for some companies over the several past decades with the changes in the education, technology and expansion.

We will showcase families businesses who are developing succession plans for the future and
others that are faced with the challenge of how to keep the business running as the original
founders start looking at retiring.

If you are a member of a construction family, you'll find this article insightful and useful. If not,
you will learn about the challenges these families faced and the opportunities for growing your
own business.

We welcome your news stories, opinions, and observations, and you'll find your advertising
message reaches a receptive audience, with 10,000 copies distributed across the province.
For more information, call Chase 888-432-3555 ext 211 E-mail: chase@cnrgp.com

Happy New Year!

Happy New Year! The holidays have passed quickly and the short break in the work schedule has disappeared much like the Christmas trees in many homes across Ontario.

Last year at this time I was planning a trip to Quebec for the CHBA Awards, a couple days away at Ontario Forum for the OHBA and sitting on cloud nine. Problem was the recession was just about to catch up with the entire industry. What a difference a year makes with the dark clouds that were rolling in have almost disappeared. The great thing is as a company we survived and many new ideas thrived. The year was about measuring results and controlling spending.

The best launch in 2009 was our “Women in Construction” theme which has increased by over 100% already and we still have several weeks until deadline. A new introduction for this year will look at “Family in Construction” which will cover many business from builders to suppliers that are run by several generations of a family.

Other things that were successful for me in 2009 include new annual features with the Toronto Sheet Metal Contractors Association (TSMCA) Ontario Masonry Contractors Association (OMCA) and the Merit Open Shop Contractors Association of Ontario (MOCAO). Associations are a great place for me to provide coverage of events and begin to network new contacts for great companies and projects to profile. The key is to give more then you will ever ask to get back.

Some new changes for 2010 include new membership in the Orillia and District Construction Association as well the Hamilton-Halton Construction Association. One large association we were members of for more then 10 years is sitting on my desk either to be renewed or file away under “G”. I am weighing heavily what can I give the association and get back in return. A proposal for extensive coverage on monthly basis at no cost has not been returned. At the very least I was hoping for feedback on other ways we could work together. As the invoice goes unpaid I wonder if they will even contact us to find out why.

So as 2010 begins to gain traction I will continue to monitor new ways to increase business and to effectively network for new contacts and interesting stories. What do you have planned to launch during this period of recovery?

Jan 2010 Issue of the Ontario Construction Report

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