Newsletter
RECESSIONS CLEANSING EFFECT
Recessions Cleansing Effect On New & Younger Contractors
Overall, the Great Recession provided a cleansing effect on the local construction industry by forcing out marginally operated firms that were over extended, under managed or failed to quickly adapt and evolve or change in order to survive. Cleansing provides renewal, improvement in resource allocation, efficiency and overall results. The kind of results that transcend the organization and touches customers and their experiences.
Surviving mature contractors were able to improve on time tested methods and evolve in ways that will meet the demands of a more educated public. Conversely, start-ups, new and young companies did not have the same opportunity as more mature organization. Young firms were and still are required to focus limited resources on driving revenue to pay the bills and keep the doors open from month to month; continually chasing the next project without the time to reflect on what it takes to work on the business instead of in the business.
“Cleansing provides renewal, improvement in resource allocation, efficiency and overall results.”
Today, we see new untried, untested, “green” and young contractors that are very good at their respective trades but are learning what it takes to produce quality projects, on time and withing budget with routine. The new batch of post-recession construction businesses are learning as they go via OJT (On the Job Training).
The statistical reality tells the story.
Less than 1 in 100 will make it 25 years and 90% will be gone in the next 5 years.
The cleansing effect takes place again and again with surviving contractors exhibiting good business acumen and skill sets that go far beyond having good trade skills.
The take away.
Be careful of becoming the latest experiment and being cleansed by a new and young contractor.
THE EVOLUTION OF A CONTRACTOR
I have been in the construction industry for almost 40 years and have enjoyed founding, partnering, merging and acquiring various construction related businesses over that time. In addition, I have consulted for many businesses, mostly in the construction industry, to help others achieve and improve success. Lastly, during the recession, I was fortunate enough to serve as the President and CEO of the North Las Vegas Chamber of Commerce with all the challenges faced by Las Vegas businesses during that very difficult economic period. The take away – a keen understanding of pre and post-recession impacts, challenges, opportunities and evolutionary processes required of small businesses in one of the hardest hit areas in the Nation.
Roughly 70% of Contractors did not survive and, of the remaining 30%, many are re-tooling, adapting and evolving to meet the realities of a new economy and the realization that old business models do not work in today’s digital and technology driven world. Today, you must embrace technology and gain technology savvy to find competitive efficiency or prepare to hear the sound of taps playing in the near future.
Gone are the days of Polaroid cameras, beepers, 2-way radios, thermal fax machines and pay phones. Embracing the web, digital plans, sophisticated estimating programs, email, blogs, social media and the iPad or Android platforms are required to provide the internal efficiency gains demanded by smarter and more technology minded customers. Like Charles Darwin said “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
The same can be said about the Evolutionary process of Contractors and the Construction Industry in Las Vegas.
AJB 25 YEARS
January marked the 25th year for AJB. That is saying something after surviving the hardest hit construction market in the U.S.A.
It wasn’t easy during the Great Recession.
- Trust & confidence of Past Customers
- Hard earned Company and Personal Reputations
- Sound Business Practices over the Long Haul
- Hard work, Fair & Honest Treatment & Positive Customer Experience Prevailed
There is no magic in our success – Doing it Right for 25 Years
Twenty-Five Years! Twenty Five Years! Twenty-Five Years!
Thousands of Successful Projects! Thousands of Successful Projects Thousands of Successful Projects!
We made a change – Nobody noticed
It’s Official
We are now
AJB General Contractor
The AJB logo has made the change a great success.
The only thing that has changed is the name and an awesome new website.
Now no one gets to mangle the name: Jet Ski, Jersky, Jetsky, Jeskey
Reduce Cost and Increase Quality
We always estimate projects based on plans and specifications; however, we go one step further and review them for the things that may be omitted. This allows us to provide a more comprehensive initial cost number reducing the likelihood for future change orders. We look for alternatives (value engineering) that will reduce construction costs and/or time without diminishing the desired level of quality. AJB General Contractor lives by the cliché that we expect what we inspect; therefore, we thoroughly manage our jobs at production, project management and administrative levels to insure that budgets are met, projects are completed within schedule and the level of professionalism and project expectations are delivered.