Continued from page 1
No Consolidation – The construction industry is an owner – operator business. Efforts to consolidate have shown
power of
small business – you cannot beat an owner who is risking his wealth every day. Large firms are at a disadvantage. Again, small is big.
Local – Where can a construction company be started? Anywhere! Construction expertise is needed in all fifty states. It does not need a port facility or wide open spaces to operate. You can start one where you live and that is family friendly. An important consideration these days.
No college degree needed – Construction people who have worked in
field for several years have
equivalent of a college degree. A majority of construction knowledge is earned while working not studying. Technically, you learn how to install quality work with your own two hands. I strongly believe that someone who has owned and operated a construction business for 20 years has a master’s degree maybe even a Ph.D. No large capital investment needed – Some successful construction firms have been started with no money. Beginning capital is not a major obstacle. This is a cash flow and variable cost business. To start, a person does not have to float an IPO or have a rich uncle. What they need to do is understand
economics and have technical expertise.
Shortage of people wanting to be in it – Industry economists agree that we still have a shortage of people employed in Construction. Conservatively,
number needed is 150,000. As we have learned in our lifetimes,
Demand / Supply curve is very powerful. A shortage of anything drives
price up. Competent people earnings have outstripped general wage increases in other industries. That is job security as well as wealth building. Ask a computer programmer or airline pilot about over supply of people and
effect on wages and opportunity.
Non-Importable – The trend of outsourcing to other countries has grown in
last several years. Take your pick: Computer Programming, Manufacturing or Engineering. Construction is insulated from this problem. Put bluntly, you cannot dig a hole in
Orient and import it into
United States. The majority of labor must be “insitu” or at
project site.
What other industry has all these attributes. The answer is none. Although,
perception persists that our industry does not have much to offer young people. It is not true. Surveys have shown people in construction do not recommend our industry to their children. We must stop this habit. I challenge each of us to promote our industry. Let
truth be told.
matt stevens can be reached at mstevens@stevenci.com

Management Consultant to Construction Contractors since 1994. Has over 25 years experience, Held over 300 seminars across the country. Worked with dozens of contractors throughout the nation. Spoke before over 10,000 construction owners and industry professionals