One of the benefits of my job is the ability to view construction projects in progress throughout the country. During a recent trip to Indianapolis, I took a few minutes to take in Marriott Place, a stunning downtown development slated for completion in February 2011.

Beyond its appearance, the project was a bees’ nest of activity. It was downright invigorating to see cranes operating, materials moving, and construction pros working.

According to the company’s Web site, Marriott Place is a collection of five hotels, restaurants and meeting rooms all connected to the Indiana Convention Center, which is also undergoing renovations scheduled to be completed by December 2010.

Normally, a big hotel project might cause me to do a double take and ask a question or two. But this complex is so vast I had to learn more.

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The Convention Center is another impressive downtown development. Its Web site states exhibit space will increase from 403,000 to 745,000 square feet, including 179,000 square feet in the soon-to-be connected Lucas Oil Stadium, home of the Indianapolis Colts. The expansion is situated within the footprint of the now demolished RCA Dome.

While I like Indy, it often requires a connecting flight to get there from some major U.S. cities. And its location in central Indiana means it is a four- or five-hour drive from Chicago, Detroit and Nashville. Indianapolis normally is a second-tier convention city.

Currently, Indy is ranked No. 32 among convention venues in terms of size. But with the massive investments, it will leap to No. 16, making it a major contender for trade shows and conventions.

What do you think? Will Marriott’s $3 billion gamble pay off?

Did the city guess right on its $275 million expansion of the Indiana Convention Center?

Check out the projects for yourself at www.jwindy.com and www.icclos.com. There’s also a live Web cam of the Marriott construction at www.oxblue.com/pro.

The annual Remodeling Show took place in Indianapolis last week. I used the opportunity to poll contractors at the show, who were mostly from the Midwest.

My poll was a single question: How is your business performing in your current market conditions?

A few common themes emerged. See if you can spot them among the contractor quotes that follow.

“We’re staying steady doing need-to projects instead of luxury projects, mostly for people who couldn’t sell their homes and decided to stay.” – Bill Cowdin, Cowdin Remodeling & Design, Canton, OH

“We used to call ourselves a design/build contractor. Now we do everything. We’ll clean garages if that’s what it takes to get a job.” –Indianapolis, IN, remodeling contractor

“Our kitchen and bath business is way up this year for occupied homes. We’ve had seven jobs where people tried to sell their homes and couldn’t. So they decided to stay, remodel their kitchens and bathrooms, and hired us to do them.” – Robert Helms, Edmond Kitchen & Bath, Edmond, OK

“We specialize in disaster repair, but we are taking all kinds of work. We’ll do just about anything to stay busy.” – Dayton, OH, contractor

“We’re selling a lot of windows and roofs, but our siding business is dead. Homeowners are weathering the storm and staying in their homes, but adding few luxuries.” – Pat Carey, Midwest Builders Supply, Grosse Isle, MI

“I’m swamped. I shouldn’t be here [the Remodeling Show] today. Fortunately, the Ohio State University economy has stayed strong. Our only problem is homebuilders who are out of work now saying they are remodelers and lowering the price on jobs.” – Tom Walter, Thomas Walter Remodeling, Columbus, OH

OK, I admit this poll isn’t the least bit scientific. Yet I find speaking with contractors face-to-face far more insightful than clicking through the flood of statistics on the Internet.

So here are the most common tactics shared by Remodeling Show attendees who indicated they were surviving and, in a couple cases, flourishing.

1. Be nimble. Pros willing to broaden their range of work are getting jobs.

2. Be opportunistic. Pros who identify trends are able to extract work. Example: tap into homeowners who want to move, but can’t.

3. Be competitive. Many pros said they had downsized and reduced overhead to compete against other construction pros and handymen.

4. Be lucky. It helps to be in a good market. Two contractors from Oklahoma and one from Columbus, OH, described their markets as healthy. In fact, they were hoping I wouldn’t mention their markets in this blog because they don’t want more competition.

My guess is that most construction pros have considered these four options. But maybe it’s time to take one or more to the next level.

Perhaps it’s time to go after work beyond your specialty (and possibly below your best skills), focus more deeply on any pockets of business that are generating revenue right now, or target a nearby market that is healthier than yours.

At next year’s Remodeling Show (Sept. 15-17, 2010, Baltimore), I’m planning to ask construction pros a different question: “How are you keeping up with the boom in business in your market?”

Let’s plan for 2010 to be a comeback year.

I fear we’ve lost our way.

As businesspeople, we often react with such shocking shortsightedness that we fail to see into next year, maybe even into next week.

Remember when running a business didn’t include worrying about selecting the right mobile device, our Web site’s Google ranking, or generating more Twitter followers?

Successful businesses strived to look beyond numbers, ratios and rankings.

There was period in the 1980s and 1990s when a company’s performance was measured largely by how well it served its customers. Executives stumbled over each other in order to offer customers a truly incredible experience.

Best-selling books generated much of the customer-centric focus. In 1985, Tom Peters co-authored A Passion for Excellence. In 1989, Stephen Covey released The Seven Habits of Highly Effective People. In 1991, Carl Sewell released a little jewel called Customers For Life.

These books popularized the belief that good products, good character and truly great customer service could generate deep, loyal relationships between service providers and receivers. Leaders devoured these principles and created wildly successful businesses.

I don’t know about you, but I’ve experienced little great customer service lately. I’ve been underwhelmed by retail and commercial services, and also by three home-repair companies this summer.

And honestly, I don’t always provide superior service to my customers. I know I should.

Perhaps that’s why I was so inspired by a visit to Chick-fil-A in Atlanta (Windy Hill Road for those of you nearby). In Michigan, we don’t have Chick-fil-A restaurants.

With an hour before my next business meeting, I lugged in my computer bag, expecting some “oh brother” stares from workers and diners.

But the treatment I received blew me away. The woman taking my order saw I was carrying a bag and insisted on personally carrying my tray. I sat at a long wooden counter designed with electrical outlets for laptop-lugging patrons like me.

Several staff members came by and cheerfully asked to remove my tray or get me something. I noticed every employee seemed to take a personal interest in serving customers, including walking them to their cars with umbrellas during a downpour.

But the key moment for me was when I asked a guy cleaning the spot next to me to explain the policy on refilling beverages. Here’s how he responded:

“Sir, this is Chick-fil-A. You are welcome to as many refills as you want and to stay here as long as you wish. Allow me to refill your cup. What are you drinking?”

Moments later the cleanup guy, who turned out to be the store manager, returned with a full cup of the sports drink I was enjoying. He encouraged me to linger all day, and return every day to do the same.

I was tempted to move to Atlanta just so I could eat lunch there daily. The food was quite good, but it was the great service that made me want to return, which I will do the next time I visit Atlanta.

Since that meal, I’ve been asking myself what can I do to provide incredible service to my customers. What can BNP Media do that would make readers linger longer in our publications, Web sites, Webinars and e-Newsletters? Not just today, but every day?

I invite you to let me know your thoughts by posting to this blog or e-mail me at fauscht@bnpmedia.

What about your business? When’s the last time you blew away your customer, not just with good work, but truly great service?

Now that would be worth tweeting about.

Back in March, I blogged about a fascinating YouTube video called “Did You Know?” and received a lot of feedback from visitors. They said that the video helped them think about change and put it into perspective.

Now, a new 2 ½-minute YouTube video by the same producers offers more stunning information. This time, the topic is Socialnomics: Social Media Revolution.



Even if you are not a fan of social media, it’s hard to argue with the world’s adoption of/addiction to Facebook, MySpace, YouTube, Twitter, LinkedIn and countless blogs and networking sites.

You can read my thoughts about the stunning pace of change in technology Here and my thoughts on the growth of social media Here. Bon appetit.

Today, I am encouraged and inspired. I am turning a deaf ear to the naysayers and a blind eye to the imagery of negativity. I see unlimited business opportunities. I am planning to succeed.

No, I am not smoking anything.

I just spent time with 220 positive and confident leaders at the Best of Success Conference in Nashville. This annual event, managed by Roofing Contractor and Architectural Roofing & Waterproofing, brings together some of the brightest minds and best ideas in the construction field.

Presenters ranged from expert marketers to consultants to business owners to facility managers. Some were highly polished veterans. Others were down-to-earth entrepreneurs sharing for the very first time.

All were great at transparently sharing the ideas and techniques that had transformed their businesses. They spoke freely because they know that only a tiny fraction of their competitors have the discipline, smarts, savvy and guts to copy them.

Frankly, we should all copy them because these strategies have produced powerful results.

With 20 excellent speakers spread over two days, I cannot do full justice to their ideas in this blog. Instead, I’ll briefly summarize just eight of the ideas I liked. See if you can find the business opportunity in each concept.

In 2004, soon after delivering my daughter at Cedarville University in central Ohio, she told me about this interesting computer application called Facebook. It was a new way of interacting with other students on campus and other universities.

Other than the occasional stalker concern, Facebook seemed to be a cool way to communicate – for college kids.

Just five years later, Facebook is taking over the world, impacting nearly every segment of society. According to the Facebook stats page, the one-time student social tool now connects 250 million users worldwide, from grandmas to grandkids and everyone in between. Users spend 5 billion minutes every day on Facebook. Two-thirds of them are outside of college.

Before long, I suspect newborns will be issued a Facebook page along with their birth certificates.

For nearly everyone who consumes media, your diet has likely already shifted from print-only to print plus electronic sources. Print media retain advantages e-media cannot match. These include not needing a power source, offering a tactile three-dimensional reading experience, easy portability, not requiring an Internet connection, and sometimes, superior graphic reproduction.

E-media has its advantages. It can be more timely, even stream information live. E-media can be stored and revisited in ridiculously large volumes. E-media can be shared and become “viral” in hours. E-media also can provide a great environment for developing community, whether it connects you and your friends or you and your customers.

If you are a business owner or manager, you need to care about e-media. You may never be among the millions who use Twitter, Facebook, Linked In, Plaxo, MySpace, etc. to communicate with your customers, but your competitors probably will.

Staying on the e-media sidelines could be very bad for your business.

I used to think construction pros, on the whole, would be among the last to adopt e-media. After all, they work in the field, not an office, and tend to be more old school. Right?

Wrong.

A recent survey showed 28% of Walls & Ceilings magazine’s contractor readers were using social media sites like Facebook. I knew construction pros were searching the Web for products, news and trends, but now I know they are rapidly engaging in social media.

My guess is many of these readers use social media sites primarily for personal reasons. But it’s just a matter of time before they use these sites for business purposes. By the millions, they already visit B-to-B Web sites like the one on which you are reading this blog.

You may be thinking, “OK, I should be more e-media savvy with my marketing. But where would I start?”

If you are a business owner, manager, or marketer, I invite you to attend BNP Media’s Webinar titled, “Strategies for Integrating Digital and Print Marketing to Increase ROI” at 2 p.m. E.T. on Sept. 15. Registration is free and painless. Click Here to sign up.

This Webinar was created to inform national marketers about trends and strategies in multimedia. And yet, the information applies to those marketing their services on a local or regional level.

I’ll be among the presenters, but don’t let that discourage you from attending. We’ll be sharing a ton of helpful, business-building information in just 30 minutes. Hope to see you there.

Last month, three single-family homes I pass while driving to work disappeared.

Poof.

They were there on my drive into work. But on the way home, only a “demolished by” sign remained.

It was impressive. All three homes were old, battered and probably unsalable in the current market. It was good so see them go.

The disappearance of these abandoned abodes got me to thinking. Removing crappy homes offers several benefits beyond the obvious.

Obvious benefits include increasing neighborhood beautification, safety and the value of remaining homes.

Not-so-obvious benefits include reducing low-grade local housing stock, saving wasted energy and creating space for newly built homes.

With so many foreclosures stagnating on the market--and some in horrible shape with little upkeep--mortgage holders could stop the bleeding and simultaneously reduce housing competition by demolishing their worst properties.

By demolishing vacant houses, mortgage holders would save on the cost of utilities, maintenance, taxes, marketing and other carrying costs.

While these are great reasons, I’m even more buoyed by the idea of reducing our nation’s housing stock. According to the U.S. Census Bureau, there were 127,901,934 housing units as of 2007. If we demo just 4% of them, we would reduce our current housing stock by 5 million units.

And let’s face it. There is a legion of poorly built or horribly maintained houses littering our landscape. Tearing them down would be prudent in both the short and long term.

In addition, as we eliminate a few million dwellings, we limit the number of substandard options for people to buy and rent. That would increase demand for remaining properties.

Before long, our massive backlog of empty homes would shrink, leading to demand for new homes and remodeled properties. That would generate construction jobs and kick-start our economy at a time when we really need to see improvement.

But here’s one more opportunity that would benefit the construction field. Instead of simply demolishing these “blower-uppers,” let’s deconstruct them. We can create even more jobs for construction pros by systematically dismantling the homes, salvaging the good wood, electrical systems, piping and other products that still have value.

So here is a challenge for mortgage holders and local municipalities (not our federal government, please): catch the vision and build support for deconstruction of the worst houses in your portfolios or communities.

What’s not to like about eliminating eyesores, creating open spaces for new homes/gardens, improving neighborhood safety, recycling building materials, and creating jobs?

Deconstructing 5 million crappy houses will take vision, willpower and execution. But the payoff would be well worth it.

I was aghast the first time I visited the annual trade show known as the South Atlantic Well Water Drillers Jubilee in Myrtle Beach, S.C. When the doors to the expo hall opened, in poured hundreds of families.

Moms pushed strollers, kids collected trinkets from booths and grandparents kicked the tires of massive drilling rigs.

“These people are not buyers,” I reasoned, “so what are they doing at this trade show?”

Upon inquiry, I learned that bringing families to the Jubilee was a time-honored tradition. The family-friendly strategy encouraged drilling pros to wrap a vacation around the show and helped justify their participation.

Regardless of the rationale, I had to bite my lip every time little Susie and Johnny swiped the pens from our booth. I may have even growled at them.

Fast-forward to 2009 and two disturbing trends.

First, construction-themed event attendance has plummeted faster than shares of GM stock. Some shows are seeing attendance decreases of 30% to 40%.

Second, employers in the trades have struggled mightily to recruit quality workers for years. And the current wave of unemployed or barely working pros surely won’t stimulate talented young people to pursue a career in the trades.

This year, I viewed the families pouring into the Myrtle Beach Convention Center with fresh eyes. I saw a different picture. I now believe inviting families to engage in industry events is the right thing to do.

Here’s why.

More than ever, construction pros need justification during these hard times to attend a business-enhancing trade show, as well as take a vacation. These combo trips are good for their businesses, their industries and their families.

Also, Susie and Johnny are the trades’ best bets for becoming the next generation of quality pros. Those expo-invading kids are being exposed to new products, technology and impressive machinery.

Seeing their parents’ broader industry, not just their worn-out work boots, might encourage them pursue a career in the trades. Let’s face it. We have a surplus of paper-pushing office jockeys (like me) in this country. We need to build the trades.

Meet The L’Espoir/Atwood Family

One booth at the show featured three generations from the same family. Enid Drill Systems from Enid, Okla., has made the Jubilee a family affair for the last seven years.

Enid Drill Systems president John L’Espoir is a long-time industry pro and a regular at the show. He and wife Sally celebrated their 40th wedding anniversary during this year’s Jubilee trip.

John’s daughter Melissa L’Espoir Atwood is the company’s vice president and computer/government specialist. She and husband Steve count on their annual Myrtle Beach trip for some much-needed vacation time.

Their sons Ethan and Elliott have been coming to the show since 2002. At first, they just hung out. But now they are greeters and promoters of Enid products. This year they even dressed like Grandpa John.

The boys are excellent candidates to join the drilling industry. If they do, they’ll bring a wealth of experience from years of having seen, handled and promoted Enid’s products. I suspect they’ll get some great job offers.

Education, Credentials Needed to Retain Top Talent

Long-time show manager Jane Kane organizes the Jubilee, now in its 54th year. She said the open-door policy for families brings generations of well drillers together, allowing knowledge to be shared.

“The young people bring a special energy to the show, “ Kane said. “They are exposed to the industry’s diversity and new technology, which they may one day bring into the field.”

“This year we hosted a youth forum attended by up-and-coming drillers,” Kane added. “These young professionals expressed a desire for educational opportunities beyond CEUs. They want college-level courses that can lead to a degree, with the opportunity to earn credentials in the drilling field.”

Many trades offer apprenticeship programs, leadership development courses or CEUs. Some even offer credentials that recognize the scholastic achievements of those willing to invest their time, energy and funds.

But how many industry shows invite entire families to participate in expositions and conferences? How many trades support college-level degrees for their members?

Not enough.

I would like to see more shows open up their doors to entire families for one day, or at least several hours. Sure, we’ll have to pack extra pens and candy. But that’s a small price to pay to help attract the next generation of talented pros.

I rarely look out my seventh-floor window, but a few weeks ago a dangling window washer grabbed my attention. This guy--let’s call him Wally--was cleaning windows on a building adjacent to the one that houses BNP Media’s offices.

Wally was busy doing his job and seemed to cranking along efficiently. I don’t know if he was experiencing any fear, but I couldn’t help but feel a bit nervous for him.

Even though Wally’s safety rope and harness looked secure, 10+ stories is a long way to fall if his support system were to fail. Thank goodness it didn’t.

Then it hit me. Wally’s precarious position presented the perfect metaphor for the construction market.

Wally was hanging by a thread.

OK, it was actually a reinforced climbing rope designed for Wally-sized loads. But Wally had no safety net. No open window to climb through. Not even a flat ledge to clutch in case of an emergency. Just rope--his lifeline--supported Wally.

Unfortunately, that’s the same position in which many construction pros now find themselves. Their pipeline of work is gone. Their network of friendly business contacts has shrunk. Pros that once turned down jobs are scrambling for work, week after week.

For some construction pros, the lifeline is unraveling.

Maybe this week you’ll be on the receiving end of a lifeline. You’ll win a bid, get a loan, or finally receive a client’s late payment.

Or possibly you’ll be the one to toss out a lifeline. You’ll inform a construction pro that he or she got the job. You’ll mail a check. Or maybe call someone back to work.

I’ve got a couple bids on some home repair work I need done. I’ll look at them as more than jobs. They could be lifelines. I hope they are.

Know anyone you can throw a lifeline to today?

I miss “junk mail.”

It’s true. Even though I sometimes complained when digging out from a pile of mail, I actually enjoyed opening it.

For me, it was never “junk.” Where else can you receive, at no cost and no hassle, countless offers to experience new products and services, often at discounted rates? (Yes, I know and love the Internet, radio and TV infomercials, but those experiences are far less fulfilling tactilely.)

True, some of my mail was irritating, but much of it was fascinating. My favorites included catalogs with tools or gear splashed on the covers, letters with teaser comments daring me to peek inside, self-mailers die-cut and folded in ways that demanded my attention, and any kind of bulky or bumpy mystery package.

And of course, there were magazines that I always scanned to see if another publishing company had come up with a clever technique for improving the reader experience.

All of that engaging mail has slowed to a trickle and could become extremely scarce. The USPS is projecting a 2009 net loss of $2.67 billion and is likely to close thousands of local post offices, cut Saturday delivery and charge a lot more for its services for years to come.

While the global recession is heavily to blame for the severe reduction in mail volume, the Internet is the real game-changer. Marketers feel promoting their goods and services via the Internet is faster, cheaper, and easier to manage.

Sometimes it is. You are reading this blog online after all.

Because I work for a media company providing print, e-media and direct mail solutions, I love the variety of mediums we offer to marketers and readers. I am especially geeked about our innovative digital tools that improve engagement and instantly connect readers with the products they need.

But I also sense opportunity for businesses that incorporate snail mail into their plans. Here’s why.

• It’s hard to beat the tactile feeling of a direct mail piece, especially if a little creative design has been applied.
• Magazines, catalogs and brochures offer a 3-dimensional visual experience not available via other mediums.
• Many people still prefer to curl up or sit down with a printed product vs. a laptop.
• I find spam in my e-mail inbox far worse than unwanted mail.
• I save printed material longer than digital materials.
• It’s easy to target a message to specific zip codes or demographics.
• But the No. 1 reason businesses should incorporate mail into their marketing plans is that it can truly stand out from the clutter – because there is no clutter.

Right now, we get so little mail we can spend more time looking at the magazines, flyers and brochures that we do receive. The opportunity to connect with buyers hasn’t been this good since the Pony Express.

So as you consider all the cool ways to connect with your prospects via the Internet, consider adding postcards, brochures, or (shameless plug alert) magazine ads to your plan. Savvy marketers know that combining print and e-media produces the best results.

I’ve been saving fortunes from my Chinese dinners and I’m elated.

Apparently, I’m in line for an incredible string of good luck. And my good fortune is your good fortune because we’re all in this downturn together.

Here are my last five fortunes and the irrefutable interpretations of what they mean for the construction field.

Fortune #1: Excitement and intrigue follow you closely wherever you go.

While this fortune conjures up thoughts of becoming a Navy SEAL, clearly, it really means an enormous construction turnaround is in the works. What else could cause excitement other than a substantial upturn in housing starts and commercial building? And I’m already intrigued thinking about just how huge this turnaround will be.

Fortune #2: Sometimes traveling to a new place leads to great transformation.

Obviously, this indicates how my recent trip to Zion National Park and Bryce Canyon is helping transform our economy. Originally, I thought I was on vacation, but now I know this trip was strictly to invest in America. Based on my credit card bills, I did a great job.

Fortune #3: You will receive a surprising gift very soon.

If it were not medically impossible, I’d be worried this fortune is predicting I will add offspring to the Fausch family. Whew. No, this fortune guarantees that massive stimulus funding will finally impact the construction trades. It’s time to prep your bids, restock your trucks and gear up.

Fortune #4: You will have full contentment by summer’s end.

Wow, this fortune could have so many interpretations. But let’s stick with our theme. Without question, this fortune is telling me that lending will return, foreclosures will end and people will be back to work all “by summer’s end.” This is truly fantastic news. I plan to tell my laid-off friends to expect job offers in the next 30 days.

Fortune #5: You will spend old age in comfort and material wealth.

This fortune sounds like I’ll be doing infomercials from my yacht. But I don’t like sailing that much, so let’s consider another interpretation. Undoubtedly, this fortune is promising a boom in the stock market. Our retirement accounts will bulge to the point of embarrassment. Soon, we’ll be stuffing $100 bills in those tip jars at Starbucks.

So there you have it – five sure-fire signs that the recession is ending, the housing market is back on track, and we’ll all be rolling in revenue.

Feel free to take this news to your banker so he can substantially increase your line of credit. I’m happy to send him my five fortunes, minus the cookies, if he needs hard evidence.

In September 2005, the world was mesmerized by the greatest natural disaster in the history of the U.S. Most of us were glued to our favorite cable channel or Web site, watching hurricane Katrina pound the Gulf Coast without mercy.

Our federal and state emergency services were in the spotlight. How would they respond to this overwhelming storm? Some of us watching from the comfort of our living rooms gave these agencies a failing grade because lives were lost and thousands of people endured great hardship.

Fast forward to June 2009. If a Katrina-size hurricane were to hit the U.S. today, would we fare any better? At least one leader says our government agencies are much better prepared and are committed to never letting such an event happen again.

Paul Rainwater, Director of the Louisiana Recovery Authority, addressed attendees of the National Disaster Reconstruction Conference & Expo in New Orleans on Thursday, June 18. Rainwater said the government emergency response agencies have improved their strategy and preparedness to overcome the communication, evacuation and housing issues that plagued efforts during Katrina.

Rainwater also shared what’s happened in the nearly four years since Katrina.

*Of $9 billion appropriated to Louisiana, $4.1 billion remains to be spent.
*Debris removal is mostly complete.
*There are still nearly 4,000 buildings to be demolished.
*A program that elevates homes has been very successful.
*A program that makes generators available has spent just $2 million of $60 million appropriated.

“We’re building structures that are higher and stronger and it does work,” Rainwater said. “There is still plenty of work for contractors,” he added.

If you or your company is interested in participating in the reconstruction efforts in Louisiana, visit www.LRA.louisiana.gov for more information.

The word disaster conjures up many images.

The sports nut cries disaster when his cable goes out near the conclusion of the big game.

The businessperson experiences disaster when his top customer files for bankruptcy.

The homeowner endures disaster when his house is impacted by flood, fire, smoke, wind, mold, sewage, etc.

In all of these scenarios, disaster is a bad thing. But it can also be a good thing. Allow me to explain.

An exciting growth niche in the construction and service economy has been the evolution of specialists who deal with the urgent, unpleasant and unplanned events caused by disasters of all shapes and sizes.

These pros have titles like: rebuilder, remodeler, restorer, responder, remediator, recoverer, mitigator, adjuster, applicator, cleaner, insurer, preventer and contractor.

They work for construction companies, insurance companies, cleaning companies, government agencies and companies that specialize in tackling tasks deemed too dangerous, skilled or nasty for the average person to embrace.

Many of these companies are prospering--despite the recession. They often are paid well by insurers, government funds and homeowners and business owners who desperately need their services.

So how does one enter, or expand within, this lucrative field? Glad you asked.

Your first step is to attend the National Disaster Reconstruction Expo & Conference, June 17-18, in the Morial Convention Center in New Orleans. This new event brings together a dynamic cross-section of experts/presenters from all sides of the disaster dilemma.

With the NDR Expo’s 30 conference sessions, you’ll find topics that provide a 30,000-foot view, or a 3-foot view, of the business opportunities within the disaster field. Click here for a list of session topics.

The NDR Expo also features more than 75 exhibitors that will demonstrate solution-providing products and services. Click here for a list of exhibitors.

The NDR Expo is co-produced by BNP Media and Imago Productions, and is sponsored by more than a dozen construction and maintenance trade magazines and numerous associations and government agencies. Click here for a list of sponsors.

Once you discover the business opportunities presented at the NDR Expo & Conference, you’ll never look at the word disaster the same way again.

We look forward to seeing you at the first NDR Expo & Conference, June 17-18. Register online today at www.ndrexpo.com or call 770-645-0046.

Despite the construction downturn, now might be the best time to join a professional association or organization. Doing so might provide you with marketing advantages that your competitors won’t have.

Clear Seas Research* has been polling our Building Materials Panel, a cross-section of construction pros who frequent BNP Media publications, e-Newsletters and Web sites. We wanted to know what percentage of construction pros are participating in association/organizations. We also wanted to know how such memberships were contributing to the pros’ success.

First, we learned that a whopping 78% of respondent have not joined any business groups in the last 12 months, nor do they intend to in the near term. This was a bit disturbing because associations, marketing groups, buying groups and other organizations can do so much to advance a market and help members.

On the other hand, 22% of our responding panelists have joined Associations (15%), Marketing Groups (4%), Buying Groups (3%) and Other Organizations (6%). (Multiple responses were allowed, which is why those breakout percentages exceed 22%.)

So business group “joiners” are clearly in the minority. Why would just 22% of construction pros join one of these groups?

Our next question provides answers. We asked the panelists to tell us how important these memberships are to the success of their businesses. As you can see by the bar chart, they feel they are getting good to great value.

First, 93% of those who have joined Associations feel their memberships are Somewhat Important to Very Important to their company’s success. An impressive 40% selected Very Important, the strongest response option.

Next, 66% of respondents said their memberships in Other Organizations (typically smaller/local groups) are Somewhat Important to Very Important.

Next, 54% indicated their membership in Marketing Groups contributed to their business success.

Lastly, 41% said their membership in Buying Groups contributed to their success. However, a surprising 40% also said Buying Groups were Not Important At All (weakest response category) to their business success.

It’s no secret that most business associations and organizations have struggled to grow their memberships, especially those that have been battered by the construction downturn. Even so, I would have thought more than 22% of construction pros belong to at least one business group.

Ironically, those who do belong give strong props to these groups, especially professional associations. Let’s look at some reasons the respondents gave for joining groups.

• Networking/gaining contacts
• Better exposure/recognition; serves as a temporary Web site until I get mine up
• Better grass-roots feel to networking and local connection to people
• Business organization & image presentation (training employees)
• Exposure to our customers and learning information about the industry
• Finding techs, buying vehicles at a better price, getting discounts on gasoline
• Given us more exposure to realtors and the foreclosure business
• Giving us some free advertising and marketing
• Higher search engine ranking, more targeted and efficient advertising
• I can make a more informed presentation to the customer and speak with more confidence
• Increased our market share
• Increased employee specialization and certification in green building practices
• Increased exposure to our services through word of mouth and networking events
• Now we are growing faster
• Promoting the business, supporting the community and local events, not just a rookie, hoping to look professional and well educated in the field we specialize
• Provided industry requirements, training, interaction

To summarize, the four marketing techniques respondents said most contribute to their companies’ success are:

• Associations (93%)
• Other Organizations (66%)
• Marketing Groups (54%)
• Buying Groups (41%)

With 78% of your competitors NOT joining business groups, you’ll have a distinct--possibly exclusive--advantage if you do. But joining a business group works only if you engage, so make sure you participate in the group’s activities and opportunities.

Next blog - Part 4: Four Incentives That Improve Employee Productivity and Sales

*To obtain a copy of the survey results, contact Kelly Clinton at clintonk@clearseasresearch. Results from this study are copyright @ 2009 by Clear Seas Research. All rights reserved.

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Many of your competitors will survive this recession, but only a handful will grow stronger. How in the world are they doing it?

Using the expertise of Clear Seas Research*, we surveyed members of the Buildings Materials Panel, a cross-section of construction pros who read BNP Media trade publications, to learn their 2009 marketing strategies.

A healthy 184 construction pros responded to our just-completed survey, which focuses on marketing, advertising, organization membership and employee motivation. In this week’s blog, we’ll focus on successful marketing and advertising techniques.

We asked the following question: In 2009, what new marketing/advertising techniques has your company implemented or planned to implement to improve sales?

If you assumed your competitors were not investing in new marketing and advertising strategies, think again. Only 27% fall into that category. The other 73% are aggressively marketing--maybe to your customers!

Print Advertising was the top new marketing technique listed by survey respondents, which might surprise you. It surprised me and I’m in the publishing business.

It’s true. Print Advertising tied with Launched/Enhanced Company Web site as the number one selection with 34% of survey respondents selecting both answers (see first bar chart).

Next came Enhanced Customer Retention Programs (28%), Internet Advertising (27%), Direct Mail Advertising (25%), E-mail Advertising (24%), Yellow Page Advertising (23%), Radio Advertising (10%), Cable/Local TV Advertising (9%), and Telemarketing (9%). Multiple answers were allowed, which is why these totals exceed 100%.

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I recently received a link to a YouTube video called “Did You Know?” It is fascinating look at the pace of change, including business and employment trends.



The video presents a stunning summary of how technology has dramatically transformed our world in a relative flyspeck of time. Let’s give major kudos to the research team of Karl Fisch, Scott McLeod and Jeff Bronman for compiling the data.

Many of the video’s statements are mind-boggling. But a shocker for me was this comment: “The top 10 in-demand jobs in 2010 did not exist in 2004.”

Our world is changing so amazingly fast that we rarely see the tail end of a trend before a new trend makes the first trend obsolete.

Take the publishing world. Any publisher not seriously engaged in the Internet is headed for obscurity. But the future is bright for media companies that embrace the Web, with all of its trends and quirks. My employer, BNP Media, is dedicated to providing the very best integrated (print + electronic media + live events) options for readers and advertisers.

This includes training and education, which represent the only path to remaining successful in today’s change-a-second environment. Without ongoing training, you and I will cease to be relevant.

Our publications and Web sites have made education a priority. Our Events Group has assembled a remarkable collection of conferences and webinars that will provide the latest trends, business opportunities and CEUs. These are career-boosting events.

If at all possible, attend a live event this year to maximize your learning and networking opportunities. Here are two events you can register for now:

National Disaster Reconstruction Conference & Expo, R&R magazine, June 17-18, New Orleans, LA. Click here for details and registration.

I live and work in the rather sickly Detroit metropolitan market. Every time I drive by a flooring store, granite shop, plumbing showroom or contractor’s truck, I wonder how they are doing. What steps have they taken to cut costs? How long can they keep going if conditions don’t improve?

Most markets are not as tough as Detroit’s, but all are suffering. I heard an interesting term that describes our extended economic downturn: the “new normal.”

How do construction pros navigate in these “new normal” conditions that have lingered way past temporary? Clearly, this downturn is not a “dip,” “correction” or “slowdown.” Like an unwelcome, messy houseguest, these conditions are here to stay for a while.

Rather than continue hoping for an economic rebound to save the day, many pros are changing their businesses to reflect the reality of our “new normal” conditions. But how they are changing? I asked Clear Seas Research to conduct a survey* among our Building Materials Panel, a cross section of pros who read BNP Media’s construction trade magazines, Web sites and blogs.

This survey garnered 364 respondents, so it definitely touched a nerve. After analyzing the results, I identified five tactics construction pros are employing to survive the “new normal.”

1. Cut Overhead. 38% of respondents say they reduced staff, 28% say they reduced hours, 16% cut benefits and 16% cut compensation. Interestingly, 38% also said they are “not focusing on reducing overhead.”

2. Reduce Benefits. The 16 % who are cutting benefits are hacking 17 different areas: 401k plan, 43%; medical insurance, 39%; holiday pay, 32%; dental, 29%; personal/sick pay, 29%; supplemental benefits, 23%; vacation pay, 23%; family medical leave, 21%; flexible spending accounts, 21%; employee assistance programs, 20%; life insurance and AD&D, 20%; bereavement time, 14%; and five forms of COBRA or disability coverage, 12% each.

3. Minimize Work Vehicle Expenses. These motorized workhorses won’t be receiving the same pounding they endured when times were good. 40% of respondents are improving route mapping; 39% are driving less; 30% are seeking fuel discounts; 21% are using GPS to improve driving efficiency; 17% are investing in vehicle maintenance; 13% will stock less inventory; and 13% will switch to smaller vehicles.

4. Increase Marketing. We asked this open-ended question: “What changes will your company make in light of the current market conditions?” 38 respondents wrote that their company is increasing its marketing and advertising. Another 14 indicated they would tap into new markets with new services/products, seven said they would “get more aggressive,” and four wrote that would increases sales efforts. While some respondents are focused on cuts, it was energizing to see that many are being proactive in attacking their “new normal” market.

5. Employ New Services. Another open-ended question provided more inspiring results. We asked, “What new products or services will your company offer to become more competitive?” Respondents’ answers demonstrated a high level of creativity, flexibility and resourcefulness. Here are some of their comments.

“Switched to more green products.”
“Bid smaller projects.”
“Add cleaning services after installations.”
“Bid more services in our quotes.”
“Selling service contracts.”
“Switched to IP phone services.”
“Offering incentives to customers for purchases.”
“Adding a handyman division.”
“Bought our own delivery truck.”
“Offering radon testing.”
“Added apartment remodeling and insurance work.”
“Bring in a new line of siding”
“Added solar installations.”
“Added midnight electricians.”
“Added engineering services.”
“Added IAQ, UVC lights.”
“Add certifications for geothermal, solar.”
“Added hardwood repairs and services.”
“Developing Web site.”
“Adding drain, jetting, video inspection services.”
“Adding cork, bamboo and laminates.”
“Expanding to regional clients instead of local.”
“Adding fireplace units.”
“Installing outdoor wood furnaces.”
“Adding granite installations.”

The list of services being introduced by construction pros this year was quite amazing. For those of you proactively developing new skills and business opportunities, the future (albeit scary) looks very exciting.

Carpe diem!

*To obtain a copy of the survey results, contact Kelly Clinton at clintok@clearseasresearch. Results from this study are copyright © 2009 by Clear Seas Research. All rights reserved.

Regardless of where you fall in the political spectrum, you are likely looking forward to a change in Washington. If you are a business owner or manager, you are especially excited by the prospects of a new cadre of leaders generating optimism among consumers.

I am right there with you. Consumer confidence is the lynchpin to fixing our broken economy.

Here’s an example of how this works. Today I got a call from XM Radio, touting its new offerings from its merger with Sirius Satellite Radio. This is at least the third call from XM since I let my free trial expire a couple months ago.

They offered me a sweet deal. They were discounting their service even further than the “half off the first year” deal they originally offered. Now, they wanted to restore my old service, plus give me 40 additional channels, for just $3.99/month.

I actually thought their service was pretty cool. Catching a few laughs on the Blue Collar Comedy channel is a nice perk when so much negative news is at hand. But I turned them down.

Hence, I am part of the problem. People representing companies with good products are hearing the word “no” to even the very best offers. Like dominos falling, each “no” leads to more pessimism.

My colleague Dan Murfey, publisher of Site Prep magazine, just returned from the Association of Equipment Distributors-Condex show in San Diego. Although attendance was down, cautious optimism was up. Why?

Dan explained that President Obama’s stimulus program promising a massive public works program has given construction equipment manufacturers hope. Many are projecting that the second half of 2009 will produce an increase in orders for backhoes, skid steers, excavators and more. This kind of optimism will go a long way to regaining economic momentum. The more people say yes to buying products and services, the more our economy will rebound.

Unfortunately, there are footnotes to this theory, as noted by the pundits who populate our airwaves. One observer commented that public works projects for infrastructure like roads, bridges and water systems are notoriously slow to develop. These projects often take years—not months—to complete. We might not see any measureable stimuli to our economy until 2010 or 2011.

Another pundit took shots at the “green jobs” President Obama hopes to create. The pundit claimed that goals for green job creation dwarf the ability of industries like solar and alternative energy to absorb new workers at a viable pace.

Skeptics might have a point. Can well-intentioned federal job-creation programs really meet the lofty expectations? I’ll bet my new Obama commemorative plate that many of these programs will be busts. But some may work beyond our dreams.

What about you? With our new leadership in Washington promising change and hope, are you ready to buy products and services that you’ve postponed purchasing in recent months?

For the last few years, anything green has received incredible attention. The high price of oil, the threat of global warming, and a strong economy have caused us to view the world through green-tinted glasses. I don’t know about you, but I sometimes feel like I am drowning in a sea of green.

Fast forward to today. Oil is cheap, icy weather engulfs the U.S. (global cooling?), and our economy stinks. Could the vast green sea become a puddle?

Let’s use the 2009 Detroit auto show to gain some perspective. Early hype has focused on all-electric cars, buoyed by their green factor. Is the Chevy Volt the next big hit? Can it help turn GM around? Will the automakers soon sell electric cars by the thousands?

Unfortunately, we’ve been down this road before. GM previously produced electric vehicles, but found the consuming public wasn’t very interested. GM could not sell enough of the cars to make a profit, so it pulled the plug.

As any good marketer will tell you, only innovative, high-quality, service-rendering products will become hits. To enjoy a long life span, hit products also need to keep outperforming all challengers. So the Chevy Volt will succeed only if delivers on its promises, and keeps delivering.

Need an example? The last mass-producer of VHS tapes just announced it is shutting down, a casualty of the more popular DVD format…which is expected to die shortly with the increasing adoption of Blu-ray technology.

So if you’re tired of all the green hype coming your way, relax. Only those products that offer truly exceptional value will last. All the green wannabes will disappear.

How do I know this? You told me. Actually, 414 of you told Clear Seas Research, which conducted a green construction survey on my behalf.

Specifically, 52% of you (readers of BNP Media’s architecture, engineering and construction magazines) said your top reason for shifting to green products and services was to spec/buy/install a “Better Product.” The next closest reason was to be “Socially Responsible” (44%), followed by “Owner’s Request” (42%), “Building Certification” (25%), and “Government Incentive” (25%).

You even told us some of the green products that are helping you meet customer needs in 2009. These include:

• Solar heating products
• Low/dual flush toilets
• Low flow faucets/showerheads
• Geothermal products
• High efficiency equipment
• Recycled carpet
• Bamboo
• Recycled flooring materials
• Energy efficient insulation
• Recycled roofing products

This survey was conducted in late fall 2008. But with our economy downshifting daily, I strongly suspect that construction pros are no longer selecting green products in order to be socially responsible. They are buying the best products.

So the next time a project manager, facility owner or homeowner asks you to green up their project, pick the products that will perform the best, not the ones with the most hype. Your customer will thank you now and for many years to come.

The recent spate of mergers caused me to wonder why we--the valued customers of these companies--were not consulted about their unions. I know we could pick better partners. So at the top of my Christmas list, I’m asking for mergers that will bring a smile to the face of every employee, customer and even those not-so-lovable boardroom Scrooges.

Take for example the merger of Northwest Airlines and Delta Airlines. This merger is destined for failure. Combining airlines intent on rationing peanuts and pillows won’t work.

Instead, I’m calling for a merger of Northwest with Sonic. Sonic Northwest would deliver great burgers and shakes to every passenger. And the Sonic name would force Northwest to speed up flight times. We’d finally get to our destinations on time and without hunger pangs.

Sprint/Nextel’s merger has been a disaster, while Cold Stone Creamery is reported to be struggling.

The solution is obvious. Merge Cold Stone’s singing employees into a new company called “Sprint Stone.”

Sprint Stone customer service reps would provide cheerful assistance, phones that actually work and complimentary “Love It” helpings of delicious ice cream with fruit toppings. We’d never switch phone carriers again.

Now that the merger between GM and Chrysler is dead, GM desperately needs an infusion of “cool.” I’ve got the perfect partner--Apple. Instead of those boring OnStar systems, GM Apple would install high-tech iPod systems. So when you needed help, you’d select your favorite music artist to sing your instructions.

Think about it. How cool would it be to have Elvis sing, “Turn left at the next intersection, thank you very much.” Pavarotti could belt out, “We’ve sent a tow truck to assist you.” And Whitney Houston could sing, “I will always love the Burger King at exit 16.”

Chrysler should merge with The Sharper Image. The Sharper Chrysler would produce Jeeps with massaging chairs, lava lamps for interior lighting, and built-in shoe polishers. They might need to throw in fancy alarm clocks so we don’t fall asleep while driving.

With the economy sputtering, we definitely need Starbucks to merge with the Dollar Store. At Dollar Starbucks, we would shop for those incredible bargains and still get a cup of java for just one buck. I know my coffee would taste better if I only paid $1 for it.

Circuit City is closing stores, but its fortunes would reverse if it merged with Mayo Clinic. At Circuit Clinic, imagine how much better your surgery would be if you could watch your favorite film in high-def with noise-canceling, sound-enhancing headphones during the operation. You might not even need anesthesia.

And for you--our treasured readers--I am wishing that grace, peace and prosperity be extended to your families and businesses throughout 2009.

Now that Thanksgiving is over, we have a few weeks before the Christmas spirit peaks and we have to be nice to people. Now is the perfect time to take advantage of people and make some easy money for your company.

Here’s how to do it:

“The secret to closing sales is to identify a person’s pain and offer a solution,” the sales guru said during the only sales course I ever took.

According to this guru, once you get people to admit their area of pain, their defenses crumble. Your goal is to keep them talking, opening up and sharing their pain. Before long, you’ve got a new sucker—er, I mean, client.

OK, I am being facetious.

In defense of the sales guru, the pain he referenced was supposedly along the lines of lousy phone service, slow computers or overpriced office supplies. But it could just as easily be roofing, plumbing, HVAC, flooring, granite, water delivery, cleaning, excavation, or any architectural, engineering or maintenance services.

When the sales guru said we should identify a person’s pain in order to sell them a product, I felt conflicted. It felt wrong. But upon reflection, this is nothing more than helping a person get to the point of telling you specifically what he or she needs and offering your services to meet those needs.

The A/E/C and maintenance industries do this every day. You provide services that reduce the work pain that a person or company is enduring. And you do it extremely well.

But what about closing a sale based on someone’s personal pain, such as the destruction of his or her home via fire, flood or storm? These are perilous times. Many people are unemployed, uninsured or out of savings.

Is it OK to profit from their pain? If not, why not?

Shouldn’t construction pros seek this disaster-related work, maybe even specialize in it? With construction suffering, such disaster work might just save your company.

This topic came to mind as the California wildfires raged, displacing thousands, destroying nearly 1,000 residences, and severely damaging hundreds more homes. These fires are both personal disaster and business opportunity rolled into one.

Add to fires the litany of similar disasters like hurricanes, floods, tornados, sewage backups and water intrusion/mold and you have the makings of a full-time business.

I don’t know anyone who specializes in disaster reconstruction. But clearly this type of work provides the opportunity to help people in their time of need. Rather than the greedy charlatans I described in the opener of this blog, I suspect these specialists often become heroes to those they serve.

I work for BNP Media, which recently launched a magazine called Restoration & Remediation for construction pros specializing in such work. Did we discover an under-served market, or are we blood-sucking opportunists? I’m trusting it’s not the latter.

If you’d like more information on the disaster services field, go to www.randrmagonline.com. You should also visit www.ndrexpo.com, a conference and trade show designed for the disaster repair, reconstruction, remediation and restoration fields, scheduled for June 16-17 in New Orleans.

Earlier this week the U.S. Commerce Department released October stats indicating that new home and apartment construction have dropped to an annual rate of 791,000 units, a 4.5% decrease from September.

Certain to receive unwanted focus is the fact that this total is the lowest national annualized rate since 1959, or nearly a half-century. Further, applications for housing permits dropped to an average annualized rate of 708,000, the worst on record.

I admit these numbers are startling compared with what we were used to seeing. With the raging mortgage crisis, skyrocketing foreclosures, and continuing job losses, there’s no hope in sight for construction pros. Right?

Wrong. There is hope--lots of it. Take a quick spin on the Internet and do a search for “U.S. Population” at www.Wikipedia.org. You’ll see some drastically different numbers that I hope will bring you comfort.

In the year 2000, the U.S. population was estimated at 281 million. In 2008, our population is estimated to exceed 305 million. That’s a whopping increase of 24 million people in eight years.

What’s more, Wikipedia reports that the U.S. Census Bureau has predicted that the U.S. population will grow to 439 million by 2050. That means there will be 134 million more people over the next 41 years. They all have to live somewhere. And, except for a handful of retirees who managed to keep their pensions intact, nobody will be leaving the U.S.

There’s even better news buried in our population numbers. One quarter of our population (24.6%) are children under the age of 18. Sooner or later we’re going to push these kids--once they become adults--out of our homes. The exception, of course, is if you drop your kids off at a Nebraska hospital immediately.

Here’s what that means for the construction market. About 75 million kids will leave home over the next 18 years. They can only crash on their friends’ couches for so long, and then they will buy a house, which will become a home, which will need maintenance, upgrades and remodeling.

And these 75 million potential homeowners don’t include the millions of new immigrants who still see the U.S. as the land of opportunity. They, too, need somewhere to live.

So even though it doesn’t feel like it, demand is building for your services. At some point, this pent-up demand will provide an explosion of new business for architects, surveyors, builders, distributors and every kind of specialty contractor. It can’t come soon enough.

I love nature shows, especially those that demonstrate ferocity in the animal kingdom. Last night I caught a segment where an imposing monitor lizard went looking for lunch in a badger’s den, only to end up becoming lunch for the badger.

In business, I subscribe to the theory that you provide the best products and services and let the market dictate who wins or loses. But it’s also wise to know your competition in order to articulate your advantages to the market.

Sometimes it even makes sense to buy, merge with or sell to a competitor. Perhaps it’s now time for your company to consider one of these options.

To gain insight into this topic, Clear Seas Research* surveyed hundreds of participants in our Building Materials Panel. The panel, comprised of subscribers to BNP Media’s construction-themed magazines, provided intriguing insight into the competitive mindset of contractors, wholesalers, designers and engineers during this challenging period.

When panel members were asked if any of their competitors had gone out of business in 2008, 40% said no. The other 60% indicated a mean average of three competitors had bit the dust. That’s a lot of roadkill.

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Looking into 2009, only 27% of respondents believe that none of their competitors will fold. Conversely, 73% said they expect a mean average of four competitors to go out of business next year. If accurate, there’s even more carnage facing the construction trades.

When respondents listed reasons why they felt their competitors failed this year or will fail in 2009, five words were repeated frequently:

• Bad (bidding, branding, debt, clients, installations, reputation, service)
• Lack of (advertising, business skills, capital, cash flow, customer base)
• Low (demand, prices, sales, margins)
• No (work, credit, management training, new construction market)
• Poor (economy, marketing, planning, workmanship)

 
Some respondents were blunt about their dead competitors:

Did not do customer follow up.
Didn’t brand themselves well.
Exorbitant spending when things were good.
Pricing too low, not sustainable.
Unable to collect from accounts.
Owed the bank too much money.

What, if anything, should your company do in response to these market conditions?

When asked how likely it is that their company would consider selling to or merging with another company, only 3% of respondents said it was “likely” their company would pursue these options. Both survival and expansion were cited by respondents as reasons for selling/merging:

Keep my employees and myself employed.
Merge skills and assets to survive economic crises.
Open up new geographic areas of business.
To consolidate resources.
Opportunity for owner to cash out.

However, when asked how likely it is that their company would consider buying a competitor in 2009, 12% of respondent said it was “likely/very likely” they would do so. Here are a few reasons respondents gave for buying a competitor:

Gain customers at fire-sale prices.
Obtain equipment and real estate at a decent price.
Increase market share.
Better regional representation.
Diversify.

Only an owner (or, in some cases, the owner’s bank!) can determine if now is a good time to sell, merge or buy a competitor. It’s a simple but daunting question. Is it time to eat, or be eaten?

*Clear Seas Research provides custom research, reports, and analysis for the construction field. For more information, contact Kelly Clinton at clintonk@clearseasresearch .

When I took my first trip to California in 1982, the state’s sunny skies, palm trees and ocean views entranced me. With the Mamas and the Papas’ “California Dreaming” playing in my head, I understood why people were moving there in droves.

For many in the construction trades, California has indeed been a dream location. My employer, BNP Media, agrees. Out of 60 titles, we publish just one regional magazine, Reeves Journal: Plumbing-Heating-Cooling. Based in Laguna Hills, Calif., Reeves Journal covers California and 13 other Western states. It’s a great market.

Here are a few reasons why those construction pros love California:

• $1.7 trillion in gross domestic product
• 13% of the total U.S. gross national product
• 37 million residents – 12.5% of the U.S. total
• If California were a country, its economy would rank between the 7th and 11th largest*

California often leads the nation in building trends. Whether you work with high-tech equipment, luxury goods, green building products or common construction materials, California offers perhaps the most enticing opportunity of any state in the land.

Unfortunately, recent reports from California are causing some heartburn. Several cities are experiencing incredibly high foreclosure rates. Median home prices have dropped 34% from September 2007.** The “Governator,” Arnold Schwarzenegger, has indicated the state could run out of money by year’s end.

Has the California dream turned into a nightmare for construction pros?

No. Well, maybe yes for the short-term, but not for long.

The current market conditions are pretty bad, especially if your work is focused in one of the high-foreclosure rate areas. Banks are selling off empty properties at ridiculously low prices, discouraging new construction. And they probably won’t approve many home equity loans for remodeling or additions.

Yet there are many reasons to be optimistic if you can hold on during this downturn:

• Your weaker competitors may disappear, possibly for good.
• People continue to get married, have kids and move to new living quarters. Demand for your services is quietly growing.
• Home and business owners cannot ignore basic needs like leaky roofs, blocked drains, no heat, no AC, no water, unsafe floors, etc.
• The green building boom demands that inefficient or unhealthy building equipment/materials be replaced.
• California is fraught with natural disasters and wear and tear. Wildfires, mudslides and weather damage will continue to provide niche opportunities.
• Banks must lend money eventually or they will cease to exist.
• Californians are too ambitious and creative to remain in a slump for long.

Regarding the last point, Reeves Journal just completed its annual Western Construction and Economic Trends Study.*** While respondents indicated 2008 trends are indeed painful, many were optimistic about 2009 and beyond. 

These contractors and wholesalers are focusing on government work, schools, hospitals and shopping malls. They are targeting older buildings that need remodeling, while promoting energy/water savings, green construction, gray water systems and solar energy.

Don’t work in California? No matter, the story is similar wherever you are. Nearly every market is experiencing a temporary downturn. But savvy pros are finding work.

Just remember the long-term trends spell great opportunity. Our nation’s population will continue to increase. Our housing stock, commercial buildings and infrastructure will continue to deteriorate. And aging boomers will continue to turn more DIY projects over to pros like you who will do the work better and faster.

* Wikipedia, en.Wikipedia.org/wiki/Economy_of_California
**Data Quick Info Systems, www.dqnews.com/california
***Reeves Journal has been the definitive source for industry news and happenings in the dynamic Western plumbing market since 1920. In January, Reeves Journal will release key results of its annual Western Trends survey at www.reevesjournal.com. Contact publisher Ellyn Fishman at ellyn@reevesjournal.