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The industry here is going backwards !

Discussion in 'General Industry Questions' started by DPete, Jul 3, 2008.

  1. DPete

    DPete Senior Member

    Joined:
    Feb 22, 2007
    Messages:
    1,677
    Location:
    Central Ca.
    Operating costs are higher than ever but we are having a contest to see who can work the cheapest:mad: On a recent joint venture bid on a mile of road the engineers etimate was 2.3M the job went to the company with lime green trucks for half that amount. I lost a job this spring of 63000 cu yds of compacted fill to a guy with scraper trains who took it @ $0.92 per yd. I had $2.47 on it. We were getting $1.30 back in the 80's. What a stupid game to play :Banghead When work slows down people almost pay to work :beatsme
     
  2. D3B Dave

    D3B Dave Active Member

    Joined:
    Feb 21, 2005
    Messages:
    29
    Location:
    Missouri
    We are seeing the same thing here. The volume of work has slowed way down, while operating costs are up. Of course fuel is the leader but it is amazing how much everything from parts, to insurance has risen. Still when I bid a job I am beaten by some one who is working for costs or less. I use to think the low-ballers would starve out, the problem is when one leaves another crops up.

    When I look at bid results I can only say dirt has never been so cheap!
     
  3. DPete

    DPete Senior Member

    Joined:
    Feb 22, 2007
    Messages:
    1,677
    Location:
    Central Ca.
    Yeah, it's ridiculous I'm not going to do it. Anybody interested in a couple clean, late D8K's? PM me
     
  4. Turbo21835

    Turbo21835 Senior Member

    Joined:
    Oct 20, 2007
    Messages:
    1,135
    Location:
    Road Dog
    Theres guys out there trying to keep crews together. Problem is, they are cutting everyone elses throat. Not to mention their own. Its tough times like these that gets the bad guys out of the trade. Makes things better for everyone else
     
  5. JJK

    JJK Well-Known Member

    Joined:
    Jun 10, 2008
    Messages:
    50
    Location:
    NJ
    Since I'm only 17 I mostly do lawn maintenance and even with fuel & higher living/equipment expenses some guys are LESS then they did years ago so I can relate. (somewhat)

    From what I've noticed here they'll start dropping out once the money in the bank somehow "disappears". Hopefully the same will be for you.......
     
  6. PSDF350

    PSDF350 Senior Member

    Joined:
    Oct 19, 2004
    Messages:
    724
    Location:
    Richmond NH
    It's not just earth moving and construction. The log mills are paying less per thousand now than they were paying in the 80's. Yet expeneses have gone through the roof. A little guy like me also can't compete for stumpage with those same mills or the larger contractors. Thats why my skidder is for sale. Well it's for sale but not really out at road right now. Doing some work with it out back, not just skidding.
     
  7. Steve Frazier

    Steve Frazier Founder Staff Member

    Joined:
    Oct 31, 2003
    Messages:
    5,868
    Location:
    LaGrangeville, N.Y.
    They're in all industries. I operate a landscaping company and I lost 7 or 8 accounts this season to guys who offered to do them for less than what I was charging last season with fuel at half the price it is now. I lost a couple to clients who wanted me to lock in a price for the season (weekly accounts mind you) and with fuel being so unstable I just can't do it. There are others taking the risk.

    I do snowplowing in the winter and while I no longer sub-contract, I know the rates for a pickup here are just slightly higher than they were nearly 30 years ago. When I rented out my pickup in 1980, I was paid $45/hr on a truck that cost about $8000 new, and gas at 64 cents a gallon. Today with a $40,000 truck and $5/gallon fuel, you can make $55/hr. It's just nuts!
     
  8. mikef87

    mikef87 Senior Member

    Joined:
    Aug 22, 2007
    Messages:
    433
    Occupation:
    owner/operator/mechanic/laborer/truck driver
    Location:
    waltham
    There is nothing going on around here. I have a few water and sewer jobs, and 1 site job for the fall. The site job is about 3-4 months worth of work and that's it. I bid a job for $800,000, another guy was $810,000 the low bidder was $500,000. He's already 3 weeks behind and it's now costing him $70,000 a week to do the job. I'd rather park all my machines in my yard than go to work and lose money. Trucking companies are going under left and right with the price of fuel and lack of wages. The government better do something quick or we won't have a country.
     
  9. joedirt

    joedirt Well-Known Member

    Joined:
    Aug 30, 2007
    Messages:
    124
    Location:
    Nothern Arizona
    Same story out this way fellas. We just recently bid a job at the Grand Canyon and lost by a huge margin. We came in 6th out of nine bidders. Low bid was out of Texas mind you and was about 300k less than we were. Go figure?? We hammered our share of rock there (the Grand Canyon) and it's got to be the hardest stuff I've ever seen. Oh yeah, you can't blast at the canyon either.

    Do people in Texas know about some super duper duper duper hydro hammer? If you do, please share. There could be a brand new slightly used Joe Dirt Excavating T-shirt in your future. Thanks :usa