Are you fit for 2012?

BY KEITH BIENVENU
PHCC national association president

We always enter a new year full of promise and resolutions. This year is no different. There are many positive trends occurring, and indications are that 2012 will be a better year for the construction industry overall.

Based on conversations I am having with other p-h-c contractors, along with reports in the news, I’m feeling cautiously optimistic about 2012. The U.S. economy is gaining momentum, with some indicators anticipating a six percent rise in construction in 2012. New housing permits began to creep up this past fall, with multi-family housing showing particular gains. Initial claims for unemployment recently fell to the lowest number since last April. And, while service and repair contractors are faring better than new construction contractors overall, our PHCC members are reporting signs that conditions are improving slightly.

Sure, there is still a lot of competition for work, especially on the new construction side. But many of the less-qualified bidders are going away, and many of our members are learning that saying no when asked to go lower on bid prices can help them steer clear of non-profitable jobs. Adoption of new technologies and software is also helping them improve efficiencies and profits.

Positive signs

There are several positive signs for the residential service market. Homeowners are spending more money on home improvements. “Aging-in-place” improvements and energy/water efficiency features are two particular areas that offer business opportunities for service contractors.

Still, there is a lot of economic uncertainty out there. Businesses continue to cut staff, reduce benefits and look at all options to cut costs. The confidence is just not there to launch new initiatives and take some risks.

To build a stronger level of confidence, PHCC encourages our members to approach 2012 with goals to keep refining operations, training staff and preparing for a gradual turnaround. With the positive trends occurring, now is the time to build on that momentum and make sure that their business is physically fit. You can’t just grasp at short-term gains. With more contractors vying for fewer jobs these days, a business needs to be solid and steady to surface on top. Here are some ideas for your “game plan” moving forward:

• Keep training. Stay ahead of the competition with a highly skilled, well-educated workforce and keep profitable with proven business management training. Check out PHCC’s list of Education and Events, including free monthly member webinars on business management and technical topics, at www.phccweb.org.

• Tackle the technology. There’s no doubt that technology is driving our businesses. Plans are posted online. Builders want bids faster. Homeowners want more technology, and manufacturers are answering the call by producing more of it. Frankly, the contractors surviving and succeeding in this economy are the ones finding ways to work more efficiently through the use of technology.

To stay up to date on technology, research educational opportunities in your area, keep up on the news and talk with vendors and contractors about what new technologies are recommended. At PHCC’s Oct. 4 Product & Technology Showcase in Philadelphia, you can see a lot of the new technologies in person and talk with experts who can explain how they work and who can help your business.

• Make legislative and regulatory issues part of your diet. Legislative and regulatory decisions made at national, state and even local levels have a direct impact on our industry. Just this past year, PHCC’s grassroots efforts led to two significant victories: the November repeal of the three percent withholding tax affecting government contractors and the April repeal of the controversial Form 1099 provision of the healthcare law. Several state-focused efforts also are making progress.

Looking ahead, make your voice heard on important issues impacting your own business. Members and non-members alike can attend PHCC’s Legislative Conference, May 2 – 3, 2012, on Capitol Hill. PHCC also conducts regular letter-writing campaigns on important industry issues. To get an idea of the latest efforts underway to protect your business, visit www.phccweb.org.

• Stay flexible. It’s so easy to get caught up in a comfortable routine. But it really pays off to make the time to listen to new ideas on how to change your business (and yourself) for the better. Be sure to make time for “face time” with others in the industry, so that you’ll hear about the latest strategies and processes. Whether you’re looking for ways to diversify your business, save costs or train employees, you can get a multitude of suggestions at PHCC events around the country.

PHCC’s Oct. 3 – 5 CONNECT 2012 in Philadelphia (www.phccweb.org/connect) is an excellent opportunity to talk one-on-one with contractors from all over the country and also to participate in valuable seminars and the popular Product & Technology Showcase. We also have a new online PHCC Community Network (http://community.phccweb.org) through which members can share information and learn the latest trends and practices in the industry.

So, as you tackle business challenges in 2012, be sure to remember to stay fit in the process. Don’t hesitate to contact PHCC for any assistance at 800/533-7694.

Keith Bienvenu is national association president of PHCC.