2021 Could Be the Year of the Contractor

If you have ever built the same type of building more than once, the second was probably easier and more profitable than the first. You likely reviewed and examined the first project to find ways to be more efficient, such as identifying building methods to save labor and material costs and considering when to hire subcontractors rather than self-performing work. Scheduling becomes more accurate and efficient from this learning experience.

As we enter a new year, many of us look back and reflect on the previous year. Though uncertainty still exists, there is value in looking for opportunities for improvement. It is important to take the time to write down last year’s challenges, any adjustments you plan to make moving forward, and your short and long-term goals.  

There are several areas a construction company should review. Here are four ideas to get you started.

1. Marketing and sales. There are many different marketing approaches, so setting a budget is a great place to start. A website that displays your niche with pictures and testimonials is a place you can direct people. Making it personal draws in potential customers. Social media is popular with construction companies. Getting involved in a contractor’s association or partnering with a charity organization can provide great exposure. Your company may be able to dedicate a person to handle marketing and sales.
2. Office and job-site management. Technology is essential in today's construction management world. Even a one-person construction company usually has a smartphone and uses the internet for many purposes. Construction management software can save time managing and communicating with both the office and field. Budgeting, controlling costs, and tracking expenses early in the project are critical in planning and adjusting. Documenting daily job-site activities using photos and videos is easier than ever with apps.  
3. Supply chain. Your supply chain is a key component in keeping your business running without disruption. Reviewing material suppliers and vendor pricing every few years can help your competitive edge. Knowing what to buy in bulk and keep in inventory can provide cost savings and easy access. Working with the same subcontractors has its benefits, but pricing can get out of hand at times. Competitive bidding can help keep pricing in line.
4. Employees and personnel. Employees are a company’s most valued asset. Competitive salaries and benefits can help retain great employees that can be hard to find. Incentives can be a nice touch to show appreciation. Listening to concerns or suggestions can show employees they have a voice in the company. Recruitment can be an ongoing struggle. I always developed a few young people that had a desire to be in the trades. Pairing them up with a skilled tradesperson can help them develop. Adjusting roles and responsibilities among personnel may also have some benefits.

Put metrics in place to track progress and help you determine if you need to make further adjustments or changes. And keep in mind that it may take time to see the bigger picture.