With construction costs up by as much as 15% over the last half year or so, it’s becoming difficult for the construction industry to bounce back. With this in mind, managing your construction costs in a way that limits waste and excessive expenditures is extremely important for your profitability. Read on for 4 things to remember to compete with increasing construction costs.
Dollars and Cents Construction
When the cost of doing business increases, it tacks additional costs onto the price of services. This is a very simple summary of the economic dilemma the construction industry is facing right now, but it brings up the needed point: if the cost of construction increases, and thus increases the cost of services offered by a construction company, then it’s going to effect business in a negative way.
While this all sounds rather gloomy, there are steps that you can take to limit the effect rising costs will have on your construction business. Consider the following steps to ensure that you not only weather the storm, but also profit during it:
1. Manage Your Inventory Wisely
This is something that should be done regularly, during the prosperous times and the recessive times. Whatever the case, making sure you aren’t maintaining a surplus in your supplies is one very effective and simple way to nip over-spending in the bud.
2. Focus on What Makes the Most Profit
When business gets tight, it makes sense to focus your efforts at what you do best and where you are likely to make the highest profit margin.
3. Continue to Market Your Business
Sometimes we’re inclined to think that marketing is something we do when we can afford it. But a recession is no time to bring your marketing efforts to a halt. In fact, it’s a time to double your efforts.
4. Protect Your Assets and Capital
One surefire way to go out of business is to be clumsy and careless with the material and devices that enable you to make your living. If you’re in the business of concrete, for example, then you need to do everything you can to make certain your precious concrete isn’t wasted or ruined.
Powerblanket® Can Help
Thankfully, Powerblanket® has ways to help you manage your assets during the good times and the bad. Simply put, we help to protect your assets against the costly ravages of cold weather. So whether you’re laying concrete, running equipment off propane, using DEF for your diesel fleet, storing large amounts of paint or chemicals, managing spray-foam application, or storing materials onsite in frac tanks, Powerblanket® can ensure that your precious profit-enabling materials are safe from the effects of winter months.