Reflections on 2014

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.