Should You Bring More Variety to Your Construction Projects?

//Should You Bring More Variety to Your Construction Projects?

Should You Bring More Variety to Your Construction Projects?

While some construction companies manage to endure by specializing in a niche, others benefit from having more diversity. Adding more variety to your construction projects can help you keep up with changing demands and reach a larger construction customer base.

There’s a Nationwide Labor Shortage

The construction industry is experiencing a continued labor shortage of skilled workers. Finding talent is going to be harder if your construction company focuses too tightly on a specific niche. More people have generalized skills than niche-specific skills. The bright side is that construction work is needed in all areas, so there are plenty of different ways you can diversify your projects.

Do You Need More Flexibility

The riskiest part about focusing only on two or three sectors is that it does not give you much flexibility. If one area of your business starts to struggle, you have nowhere to turn to try to offset changes in demand. If your construct projects are more varied, you will have more streams of revenue, and, thus, more flexibility. If the demand for new restaurants declines in your area, it won’t make or break your business if you have ten other building categories you are capable of constructing. The Administration’s Infrastructure Package

The infrastructure plan proposed by Trump has struggled in Congress, but with the midterm elections over, we might finally start to see some progress on this front. The focus of the infrastructure package is to improve streets, bridges, airports, and other transportation-related infrastructure across the United States. If this plan is put into action there will be a significant increase in the demand for skilled labor, which of course is a problem if there is a labor shortage. Even if your expertise isn’t in infrastructure-related construction, you are going to have a harder time finding talent for your own projects because a lot of the talent out there will be busy working on government contracts.

Come Up with a Specific Goal

The most obvious goal of diversification is to create more avenues for revenue. However, this is too broad a goal to be useful. Set a goal that includes what areas of construction you want to branch out into, as well as strategies to train and recruit talent. You will also need to tweak marketing strategies to accommodate the diversification.

Even if your business is flourishing right now, it might still be the perfect time to start diversifying your construction projects. You might not see the impact of the labor shortage yet. But five years from now, you will. Diversification will give you a better chance of adopting to the changing employment market and weathering the ongoing storm.

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By | 2018-12-10T16:31:10-04:00 December 13th, 2018|Construction Blog|

About the Author:

The Birmingham Group has been serving the construction industry since 1967. Brian Binke took over the firm in 1995 and since that time, he has personally placed over 1200 construction managers and senior leaders, with company revenues ranging from $10 million dollars to the largest ENR 400 companies in the industry. Brian is an industry innovator, with a specialized skillset in construction. His keen understanding of business, the construction industry, and ability to effectively match and recruit top leaders has led to many accolades. He was ranked the #1 International Billing Owner in the construction industry for his own personal production and has been consistently recognized as one of the Top 10 International Billing Owners out of 800 owners worldwide. This includes owners across every industry. In 2013, Brian was awarded the #1 International Billing Owner within the entire network. For over two decades, Brian has been considered one of the most influential thought leaders in the construction industry. His business and construction knowledge are used as a resource for some of the nation’s most prominent publications. In the past year alone, Brian has been quoted in or authored articles for The Wall Street Journal, CBS News, MoneyWatch, Construction Today, ConstructionDive, United Rentals, Fast Company, Entrepreneur Magazine, American Express, Builder Magazine, and Human Resource Executive, among others. "I believe companies are a lot like sports teams. The team with the best players usually wins. It is my passion to deliver the absolute best talent to my client companies – the market’s top performers, the talent that every company wants to hire but which seldom seems available. To put it simply, I thrive on helping my clients build their Dream Team." - Brian Binke, The Birmingham Group

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