Pending Economy

[jmac]

Willis, yup the bank thing is very scarry, they are talking about another one today. The thing about these banks is that they gambled on alot of bad notes. If the housing was still strong they would of kept all the big profit they made but now that it is bad the good old USA has to bail them out. I think and hope that this only last a short time, but with oil so high, housing so bad, and imports so high, dollor so low, it does look pretty bad. Around here state, city, and county work is still very strong and the rich are still building homes.

 

[dayexco]

that's why you need to deal with small, local banks...you know them, they know you.......they know what you're capable of, you know they'll be there for you when you really need em. you deal with the boys in the skyscrapers....eventually, you'll take a ride, or they will

 

[CM1995]

Just my $.02.

Wattson - you stated that you wanted to start a slipform and flatwork company. My suggestion about slipform - no, too capital intensive at this particular time unless you have signed contracts in hand for a lot of work with a paying customer. On the other hand being a flatwork contractor - you need hand tools, power tools and sometimes light equipment. You can rent the power tools (trowels, etc) and the light equip.( skid steer, mini-hoe). You can hire finishers as permenant employees or by the job - just get some help that knows how to make a slick finish.

Go for the flatwork, keep your long term liabilities down like no big monthly payments and go for it. Also. like has been mentioned before, ask for materials up front so you don't get stuck with a big mud bill.

Here in my neck of the woods I have turned the flatwork, footings and slab down on 2 fast food places and 1 hotel - I could have gotten them but didn't have the labor available to do it. We did get the site work package on those. The small commercial stuff here is going pretty well.

Only you know if you have the cash, ability and work available to make the jump.

 

[wattson]

Well, we have been taking all you guys opinions into consideration. When I go to work everyday- I have the intention to go to WORK to WORK. I have no problem looking the person in the eye when they are handing me my pay check . Hopefully with my work ethic I can make a go this..I take work too serious some people say.This is still in the planning/homework stage.We are trying to get the main equipment bought and paid for. So the only things that would be left are the various tools and small equipment, would hopefully end up on a line credit account. I am very aware of how some contractors operate as far as paying . The biggest thing is getting the initial jobs and making the jump. Just a little nervous about jumping over to this and hopefully it will work out. I have seen how some people run/operate their business and sometimes I am astonished how they still are in business. I am planning to start out meagerly and not get crazy with overhead (payroll, equipment bills)And take jobs that are too large for our money at hand and small crew ability.It is getting down to the grindstone and a final decision is going to be made.

 

[ASPHALT04]

Some opinion on starting out

I just went out on my own a year ago.....yes, a lot of what if's. I went into the asphalt and concrete flatwork business, There were 3 major asphalt companies (Now 2) and anyone who has a trial around here does flatwork for practically nothing. What I knew was that no one did what I saw a huge market for, both and all the small work. I used to work for one of the major companies and I couldn't find anyone to do the type of work when I was in charge. They just weren't interested, and had too much overhead.
I had a lot of contacts and that is key. I started out paving railroad crossings with a pick-up; a borrowed trailer and a rental roller. I ran some ads in the paper too. I did everything for pacthing asphalt to 1 sidewalk square.
Not glamorous but no one around does it. (Not to mention scared as hell)
With-in a month I had more work than I could get done. Granted there are headaches, and they are same type as where I used to work but my headaches to me are way better than anyone elses.
Everything I now have is all paid for and unless I had the cash I just didn't buy it. I now have 2 dump trucks, 2005 skidloader, 120 bomag roller, skid loader trailer, 10 ton trailer and a 20' enclosed trailer + tons of other items making work easier. Not to mention I learned alot of dos and don'ts this past year.
In short I would just make sure that you know your market; have some good contacts; and don't bite off more than you can chew. If you have the drive and the nuts anything is possible!

 

[wattson]

Thanks for the reply. Having the drive or the nuts is no problem to me. It is 110% or nothing. As far as contacts go, I have been around in the industry and talked to a lot people and have a solid reputation as far as being capable and quality is concerned.I do my work as if the finished product was to be in front of my house. It takes just as much effort and money to do something right as it does to just half-a$$ it. I feel the market is pretty strong for a good /capable company to do the work.Where the end product will not be of question. I feel and see that some companies are stuck in the situation of not having the option of having a choice of getting away from the undesirable companies where they know what they are getting in the end is of question. Plus past dealings with certain companies is not willing to be relived. Hopefully I can bring some kind of option to some companies willing to have another choice and build from there. Just a lot to think about and can not see the future of whats to come. Just trying to do my homework.

 

[ASPHALT04]

Where are you from in Pa if you dont mind me asking wattson?

 

[wattson]

Edinboro, PA