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Large or small, economic waves can offer satisfying ride

By: John Killin//February 8, 2013//

Large or small, economic waves can offer satisfying ride

John Killin//February 8, 2013//

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John Killin

Years ago, I decided to give surfing a try. Without any lessons or formal instruction, I grabbed a board and braved the cold Oregon surf to see if I could catch a wave. While I had fun, the waves were choppy and I just didn’t have much luck standing up let alone really riding waves.

I didn’t know how to position myself. I didn’t know the right time to stand up. And I was pretty darn cold. I am willing to bet that many of you have felt the same way in recent years.

The construction economy nationally, as well as here in the Pacific Northwest, continued to show signs of recovery in 2012. While there clearly is not a huge wave that the industry will be able to ride to prosperity in the coming year, we are seeing small swells that should help make 2013 far better than what most businesses (at least those who didn’t wipe out) have seen in four or five years.

According to the U.S. Census Bureau, nonresidential construction spending rose 0.3 percent in December, and private nonresidential construction rose 1.8 percent and was 7.6 percent higher than a year previous. And while construction unemployment rose to 16.1 percent, the industry added 28,000 jobs in January.

So what does all of this have to do with surfing? Well, I think contractors can learn from what I didn’t do before my little venture out into the ocean.

First, get properly positioned.

The incremental steps toward stability in the construction industry mean it is important that business owners and professionals look ahead and position themselves for success. While these economic indicators make clear that there won’t be a huge wave to surf, ensure that existing assets are being leveraged. Are contacts being used to the maximum extent possible? Are the right networking opportunities being sought? Are lists of capabilities and success stories updated?

Second, know the right time to stand up and ride.

Knowing the right time to make a calculated decision to take a chance and stand up is tough. But knowing when to invest in a workforce by hiring new workers, sponsoring new apprentices and getting skilled training can also provide a lot of stability. It may cost a few bucks initially, but it is also an investment that will pay off via more jobs. The investment will help the growing business complete jobs on time without costly mistakes that often come with an undertrained staff.

Finally, protect against cold water.

Actually, maybe I should say protect against hot water. How? Read contracts. In good times and in bad, contractors find themselves signing contracts because they had the low bid. But often those contracts are full of issues that are going to cost more than planned or are one-sided with all of the liability placed on the contractor. Seek the warmth and security of professional advice. Have contracts reviewed by an attorney so that the company knows what it’s getting into.

Contracting can be a lot like surfing. Sometimes you wipe out. Sometimes you ride a huge wave. But no matter how choppy or cold the water is, it can be a lot of fun. Try to have some fun out there.

John Killin is president of the Associated Builders and Contractors’ Pacific Northwest chapter and executive director of the Independent Electrical Contractors of Oregon.



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