Maximizing Profitability In A “Bull” Market For Construction

The Bulls And The Bears

Bulls are always bucking their heads “upward”, while bears slash “downward” with their razor-sharp, heavy claws. A “bear” market is bad, but a “bull” market is good—even though getting stuck in the pathway of either animal rampaging through a city in reality would likely be disastrous. Thankfully, these animals are only analogous descriptions of the American stock market.

Today, a “bull” market has characterized forward egress for many months. The economy has become positive. Positive economies can pose difficult questions for business owners. Sometimes the run of a political administration can suck the energy out of an economy, and by the time it’s “good” again, business owners are looking to sell their old business and be rid of it. But sometimes persevering is a better choice. Many in the U.S. are at just such a crossroad.

It’s a good time for the construction industry in the America of today. The economy is at record highs, and new buildings are going to be put up across the country, and as a collateral result, the world. How long this boom will last is anybody’s guess, but signs are indicating continued positive development.

Whether your business has suffered in recent years, or it’s doing very well, it makes sense to exploit this situation as best you can. First things first: you want to establish operational practices which will perpetually yield positive results. Source employees who are skilled and have a history of employment that is solid, and isn’t filled with short stints where they were either fired or quit.

Equipment Considerations

Next, you want to look at your equipment. The idea with purchasing equipment is to get the most for your money. Again, basic economics come into the picture: you want to buy low and sell high. The key is to get the best equipment at the best price and keep it running as long as you possibly can. At the bare minimum, you want to get your investment back.

This means if you spent $10k on a grader, dozer, or other piece of equipment, you need to get at least $10k worth of use out of it before you sell it or retire it. Calculating such use requires factoring out the cost of paying whichever employee runs the equipment, gasoline, or collateral repair expenses that may result from accident or misuse.

Sometimes buying cheaper will cost you more money because productive time will be lost in repairs. Also, sometimes getting a deal on an after-market “premiere” piece of equipment can underhandedly slap your finances when you discover said equipment isn’t conventionally served in your area. Americans come up against this problem with Volkswagens all the time.

Purchasing From The Right Sellers

Finally, you want to get the right kind of equipment—the operative word here is “versatile”. Consider the skid steer loader, as an example. Skid steer loaders can be put to a variety of use; according to www.mylittlesalesman.com/find/skid-steer-loaders-i1c29f0m0, “Skid steer loaders are speedy, versatile machines with a rigid frame and dual lifting arms that can be outfitted to perform a wide variety of landscaping, agriculture, and construction tasks.”

The right sellers will offer such equipment at affordable rates. Additionally, you should expect variety in purchasing choice, and read all the fine print surrounding machines being sold. While generally buying too cheaply represents a cumulative loss, there is an event horizon where that changes.

If you only get one day out of a $500 piece of equipment, and do $1,000 worth of work, then you’ve doubled your investment. Today’s market is conducive to growth, so consider your options and buy well. If you’re careful enough, you’re likely to see the kind of positive forward growth you may have missed in previous years of un-bear-able markets.