There have been construction industry rumblings for some time now that the boom that many contractors have been enjoying for years might be coming to an end or at least slowing down.
Yet contractors are still reporting that they’re busier than ever and, according to the Associated Builders and Contractors, are enjoying near-record backlogs.
One theory is that the lack of skilled trade workers is creating a project logjam that is camouflaging a less-than-sunny outlook. Nevertheless, preparation for the worst never hurts, and there are ways that contractors can protect themselves from potentially rockier economic conditions ahead.
“I don’t think you can ever recession-proof anybody in this business, but there are certainly ways to be smart — ways to plan and not to be taken by surprise,” said Jack Callahan, construction industry leader at financial consultancy firm CohnReznick LLP. “You just can’t let it sneak up on you again.” Recalling the Great Recession, he said, plenty of contractors were forced out of business by not taking the proper precautions.
Many of these measures represent strategies that contractors should consider implementing no matter the economic landscape.