Whether you’ve been in the construction industry for decades or you’re just getting started, the thought of owning a construction company may have crossed your mind. For many, owning a construction company comes with many benefits, but also many downfalls. Continue reading to gain the insider scoop on the best and worst things about being an owner of a construction company.
One of the best things about owning a construction company, according to multiple business owners, is the ability to literally build for the future. Construction companies are not only shaping lives but building up communities throughout the country.
John Hogan, the owner of Blue Nail, LLC in New Jersey, also believes this is the biggest benefit of owning a construction company. John reflected on his business venture, stating,
“The best thing about being a construction company owner is having a tangible effect on people's lives. The best part of every project is seeing it all come together at the end and the smile on our customer's faces knowing that their family is now safe from the leak or whatever issue they were dealing with and we were able to improve their home to make it look beautiful. They are proud of the curb appeal and it has a trickle-down effect from the homeowner to the neighbors to our team and gives a sense of pride to all of us as a community. We feel that we’re not only building a roofing or siding project, but we are also building ourselves and our communities with every project that we install.”
As a construction company owner, you have the ability to build a better future, better buildings, and better lives, for those that you serve — which makes being a construction company owner one of the most rewarding jobs in the field.
Construction services are one of the most in-demand services in the United States, and that demand is expected to expand by at least 6 percent in the next 10 years. Many regions across the United States are experiencing extensive growth, despite the post-pandemic challenges that these companies may be facing.
If you’re considering building a construction company, know that although times may feel tough, you can rest assured that the industry is going to continue to grow.
As a construction company owner, one of the biggest struggles you may find yourself facing is employee retention — especially post COVID-19 pandemic.
In fact, labor shortages have 70 percent of contractors missing deadlines with no end in sight. The construction industry has been bogged down with constraints since the COVID-19 pandemic set in.
Ralph Severson, the owner of Flooring Masters, agrees,
“Since COVID hit the hardest part about the construction business has been finding, and keeping employees. We are willing to train motivated people to be lead carpenters, but can’t find anyone who wants to put the effort in. The past two years we have had several entry-level employees who have come and gone.”
One survey from the Commercial Construction Index found that the recent labor shortages have left 81 percent of contractors needing their current employees to put in overtime hours to try to meet these above-mentioned deadlines.
The pitfalls don’t stop at retaining contractors — material shortages, skilled-labor shortages, safety issues, and the lack of technological advancement, are all taking a major toll on construction company owners and their employees.
Daniyal Mushtaq Awan, managing director at 1to1 Plans in Dallas, Texas, is all too familiar with the effects of these shortages, stating:
“Running a construction business in this current economic climate is the most challenging time we have seen. From staffing issues to material supply chain disruption, nothing is like it used to be before the pandemic.
We are working seven days a week clocking in 100 hours easily and still not being able to complete the timelines required by our projects. It has come to the point where I am encouraging tradesmen with a hard-cash payment at the end of each day just to retain them and prevent them from going to other higher-paying jobs.”
As you consider whether owning a construction business is the right move, it’s vital that you consider how you can handle these pitfalls, what funding you have to maintain a business during these economic times, and what your construction company can handle.
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