With the money crunch for public projects, I have advocated that a great solution is more private-public-partnerships. The reason is there are huge amounts of a private capital seeking places to invest. Private-public-partnerships are a way to tap that resource while at the same time decrease the strain on federal, state, and local government coffers. It is important that we find methods to finance our infrastructure. Not investing in infrastructure increases costs to both business and individuals. Further, a healthy program of infrastructure projects would help provide high quality jobs.

More: You Need to Fund the Projects

I often tease contractors that they should get out of the building business. I’m not suggesting they should stop building buildings, because that’s what they do.  However, their real business  is how they provide value to clients. That’s achieved by helping their clients and prospects solve problems. For contractors this means solving problems that require construction, but the value is added in helping to determine what is built.

More: Think Like a Consultant

Studies find that contractors who are considered top performers by clients are more profitable. What makes you a high performer in the eyes of the client? Below are three things you can do to improve not only your true performance, but your performance from the client’s perspective:

Put out fires before they start

Clients have enough problems dealing with their own business; they don’t need problems on their capital construction projects. Most clients just want the project built – no problems, no headaches. The best way to achieve this goal is through efficient pre-planning and risk management controls – in essence, eliminate the problem before it occurs. Do this and clients will think you are a hero. If they don’t think you are a hero they will at least appreciate the fact that you didn’t bring them additional headaches.

More: Three Strategies to Improve Profitability

Talking to people in the construction industry these days is a rather somber experience, but cheer up! Look at the bright side of things. “Man what an opportunity, what a time in U.S. history. Problems always open themselves up to opportunity. We got to be looking at those,” declares Dr. Barry Asmus, the Senior Economist at the National Center for Policy Analysis, on a recent NCS Radio interview. (www.jackstreet.com/jackstreet/WCON.Asmus.cfm)

Since the current industry wide recession is the worst recession anyone currently working in the construction industry has ever experienced, it has created many opportunities for contractors and designers.

More: The Construction Industry Faces Great Opportunities

Note: the title says lower costs, not lower price. Unfortunately, too often people in the construction industry think that lower cost means lowering their price and respond, “No way!”  What I’m talking about is eliminating all the waste in the system which would reduce project costs. The reality is waste benefits no one and actually hurts everyone even if you think you can pass the cost on to the customer.

Henry Ford wrote back in 1926 that the best way to grow an industry is to reduce costs for the customer because this will increase demand. That strategy is just as valid today as it in Ford’s time. It’s been estimated that there is at least 30 to 40 percent waste in the design and construction of the typical construction project. What would happen to demand for construction services if its costs were reduced by 30 percent?

More: Construction Must Lower Costs

Destruction is easier than construction. An airplane is a complex piece of engineering, but it is pretty simply to bring one down. It’s easy to be negative and argue about what isn’t working. It’s much harder to focus on what will work. For one thing it doesn’t take any work to complain, but it actually takes work to make things happen. To get the construction industry back on track we need to start focusing on what will work. This turnaround starts with a supreme effort to reduce costs – not by cutting profits but by eliminating the waste within the system.

More: Turning Things Around

I just read an article that described how manufacturing jobs are going unfilled because of a lack of skilled workers despite the high unemployment. This was a problem for the construction industry before the current slowdown and a problem that will return when the industry picks up. Unfortunately, too many employers are reluctant to invest in training their workers.  Worse, some actually believe hiring poorly trained workers at lower wages is a good idea. This is a mistake; in the end it costs way more to use unqualified workers.

More: Train the Workers!

In the middle of what could be called a depression in the construction industry, the idea of acquiring your competitor may seem a little crazy. However, consider that huge fortunes have been made during recessions by doing just that. Andrew Carnegie bought up all the steel mills during the 1890’s and when that recession ended his fortune was immense. The reasons for buying out a competitor are the same during a recession or a boom period.  In fact, the opportunities may actually be greater in a recession as illustrated by Carnegie, but the risks are also higher. Let’s examine a few things you should consider before buying out a competitor.

More: Should You Acquire Your Competitor?

More: Sell Solutions Not Services