As I sit at my desk during the final week of the year, I am
always amazed at how business comes to a screeching halt during the holidays. One
good thing about the receding pace of work is that it gives me time to reflect
on the business. The past year has been an exciting one for many in the
construction industry. The leading economic indicators for commercial and
residential construction are all showing steady increases. Architects are
hiring again, contractors are more optimistic, developers are taking risks, and
manufacturers are investing for the future. But just as is always the case,
there are many challenges for us in the upcoming year. Here are a few of the
things I have learned in 2014.
Make Hay While the Sun Shines
Although the construction industry is far from achieving a
high growth phase, we have been steadily moving forward for the past couple of
years. Housing starts are slowly recovering and employment in the sector has
made steady gains. The value of construction by segment reflects past growth
and points to a more predictable future. Although these statistics do not
indicate a boom year for the industry, there will be more opportunities for all
in the year ahead. What is key about this steady growth scenario is that the
players who have survived the recession are in great shape to capitalize on
stable growth. Manufacturers are much leaner, architects have pruned deadwood,
and contractors are staffed to meet current market demands. Weak competitors
have also been culled from the marketplace, making for a more promising climate
to conduct business. Now is the time to start your engines and leverage the
changes that were dealt by the great recession. Don’t miss out on the
opportunities that 2015 will bring by staying in that familiar hunkered-down
posture of the last seven years.
Don’t
Count on the Government
Maybe I have become jaded over the decades, but I have come
to the conclusion that you cannot run a business based upon what may happen in
the State or Federal government. We do a
great deal of preservation work on governmental buildings and my first-hand
view of the waste of governmental funds is nauseating. Although I have often
been the recipient of this largess, it is a shame our leaders are not better
stewards with our tax dollars. I have also had the pleasure of battling
agencies like OSHA and have seen chalk boards in their offices with targeted
penalty dollars to be assessed to local businesses. Add to that the 27 percent
increase in health care costs for our business and one can quickly lose faith.
I don’t have a solution for the fiasco; politics is just politics.
On the other side of ineptitude of governmental decision
making, our industry just received an early Christmas present from Congress. Two
weeks ago, they voted to allow businesses to depreciate up to $500,000 in
machinery/equipment purchases for 2014. This move is intended to provide
manufacturers the incentive to make investments in plant and equipment. It’s is
a good program to motivate investment to drive the economy. Unfortunately
Congress waited until the last week of the year to approve the move so it
became a windfall for companies like mine that have already made such
investments. These
days I just sit back and see what craziness comes from Washington. I’ve found
that a good strategy to employ is to take the lumps when lumps are served and take
the money and run when the wind blows your way.
Good
People are Harder to Find
One would think that given our high unemployment rate for
the past five years, it would be easy to find people who are qualified and want
to work. I haven’t found that to be the case. I believe there is a diminished
pool of talented people who want to perform the physical labor associated with
construction activity. I don’t know if
it has something to do with the millennial generation, an aging workforce, the
rise in obesity, or just a gradual degradation of our work ethic. It might have something to do with all of the
above. I like this
video from Mike Rowe of the show Dirty Jobs expressing his
concern for the diminished interest in occupations requiring hard work. Regardless
of the cause, the industry is going to have to work harder at finding people
willing and able to work. In addition to spending more effort to sift through
the rank and file, we are going to have to be willing to pay more for people
who want to work and learn the trade.
Invest
in Yourself
There has been a great deal of news recently about unrest in
the United States around race, authority, and governmental responsibility. It
is time that we stop looking outside of ourselves for change. Real change
happens from within. If you invest in
yourself, your faith, your family, your friends, and your company, you will
discover the quickest route to positive change. We are becoming a country of
spectators who are waiting for someone else to lead us to satisfaction. Wealth
is not to be found in the next lottery ticket. Break this trend by becoming a
personal change agent. Take the individual responsibility to engage yourself in
personal improvement and you will see the world change around you.
Believe
in Miracles
Last October, I watched with the rest of the country as a
baseball team surprised the world with its performance in pursuit of the World
Series. The Kansas City Royals came out
of nowhere as a remote Wild Card entry to come within one game of winning it
all. They were successful by believing
the impossible was possible and by not giving credence to the naysayers. All of
a sudden a group of kids who love the game of baseball were making history. It
is time to begin believing in miracles and believing in yourself. As my teenage
daughter said, miracles are like pimples; once you look for them you find them
everywhere.
So I tip my hat to 2014 and head into 2015 with hope,
excitement, and confidence. Although our path will still be littered with challenges, there
are exciting opportunities ahead for those who are brave enough to embrace them.
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