Managing in Tough
Times
By Joe Nasvik
Senior Editor
For many decorative concrete contractors, 2008 was a difficult
year and there's relief that it's in the past. The next challenge
will be the 2009 construction year. Maybe it won't be as
tough as 2008 but who knows? It would be nice if there was
a foolproof plan that everyone could use. But there are no
magic bullets and what works for one doesn't necessarily
work for another. There are management decisions to make
concerning marketing and securing work, managing overhead
and job costs, and keeping up with accounts receivable. For
some regions in the country, the task of staying afloat is
more difficult than otherssome regions have a lot of work
and contractors aren't worried about where their next project
will come from. Here's how a few contractors from around
the country are viewing their business.
Tom Ralston
Tom Ralston Concrete, Santa Cruz, Calif.
Tom Ralston placed this ad in a local newspaper
to get new work and also to help change the
public perception that his prices are higher
than his competition.
PHOTO: TOM RALSTON CONCRETE |
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>>As the third generation to operate his business, Ralston says everyone
is looking for work in his area and the competition is very intense. "We
are bidding at the level my father did when he started the business," he
says. They are getting work and the goal is to squeeze out
a profit of 1 %.
Sometimes they give away parts of the job in hopes they
can make profit on other parts. Being a sharp manager is
critical. He constantly searches for ways to cut costs and
pays close attention to cost accounts for each project. Sometimes
they can sell upgrades to contracts and that helps. He is
perceived as being expensive so he runs newspaper ads to
counter the perception. They've also been featured in four
publications recently, including Architectural Digest. "We are working
to keep our name out there," he says.
Dave Pettigrew
Diamond D Concrete, Capitola, Calif.
>>Pettigrew's
2008 year was pretty good, with solid booking through the
end of the year. He even had to turn down work until the beginning of 2009.
He credits his success with the decision to diversify, getting some work with
several different products. Diamond D installs a full range of cast-in-place
decorative concrete, precast concrete items, slab-on-grade residential foundations,
city sidewalk work, and epoxy floors. Pettigrew says they do more home addition
work now and thinks that when people can't afford to buy new homes they upgrade
what they have. He advertises in a local residential publication, gets work
through a decorative computer network, and works to keep a strong customer
base, including architects and general contractors. His crews- are busy and
he's optimistic about 2009.
Todd Schneider
Schneider Contracting Co., Alexandria, Va.
>>His advice is to "hang on to whatever cash you
can and don't skimp on your marketing efforts." He says
they were very fortunate in shifting from primarily residential
work into larger commercial work in 2008; he hopes to continue
in that direction for 2009. His bread-and-butter work has been
colored, textured, and stamped concrete, but he is pushing
more into microfinishes, acid washes, and exposed aggregates.
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