Solid As A Girder: Is The Construction Industry Viable Now? | Get Financial Freedom Tips

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Friday, July 27, 2018

Solid As A Girder: Is The Construction Industry Viable Now?

One of the biggest perils of owning a business is understanding how the industry you are in will develop and change over the ensuing years. The construction industry is one of those industries that can be taken for granted, especially from an outsider's perspective. As it is an industry that is, seemingly, in constant demand, this is only in relation to the bigger companies. For any entrepreneur starting out, is the construction industry actually viable now? What are the factors that affect, not just smaller construction businesses, but the bigger ones too?

Construction business

The Productivity Factor

Productivity is the bane of any business, but the construction industry is suffering productivity stagnation. One of the big issues is in the waiting for equipment and materials. This directly impacts the bottom line, and for your own business, your relationship with contractors and suppliers directly impact your productivity. Working with expensive and bulky equipment equates to a longer waiting time, especially if there are any other delays you can't control. Safety is another issue that can equate to a lack of productivity. And, again, this is why it's important to utilize preferred clients, especially when it comes to the reliance on equipment. You can visit the website of Service Trucks & Tiger Cranes to see the various options when it comes to crane bodies, one small aspect that makes a big difference to the larger items of equipment that you will have a reliance on. This can be solved, not just by having preferred contractors and equipment suppliers, but embody a more methodical approach to your productivity, where you can holistically solve problems and prepare for contingencies, rather than firefighting these issues as and when they arise.

Labor Shortages

It's not just a case of fulfilling a specific quota, but the construction industry, in general, is suffering a reduction in skilled labor. One of the reasons for this is that the baby boomer generation is getting older, and as this generation makes up for the majority of the workforce in the construction industry, while the disparity between the baby boomers and the millennials highlight different attitudes, especially in relation to technology and career progression, the so-called traditional approach to working is slowly going downhill. And by the year 2020, it's expected that millennials will be half of the global workforce. So what is the solution? While working more at enticing younger people into the construction industry is one obvious approach, a solid investment into the industry is required, but this is incredibly difficult, as many construction industries faced hard times after the 2008 recession. While so many businesses have recovered completely, it has left many businesses with the “once bitten, twice shy” attitude. As a result, they are relying on the skilled workforce, which is getting older. Embracing technology is one of the best solutions, but with this, automation rears its head, as well as the debate as to whether raw materials are sustainable anymore.

While these are just two of the factors, they are both incredibly concerning to the viability of the construction industry right now.

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