Contractor Update

Sorry the long hiatus away from the Contractor Update. We've been incredibly busy here at ConstructionDeal.com. We've increased our marketing staff to help bring our contractors more construction jobs, remodeling jobs, drywall jobs... you name it, we're working on it.

And we've got a brand new look coming to our website starting in April. You might say our website has been... Under Construction.

Also, I wanted to address something. I've been noticing a problem with a few contractors and construction industry companies out there. You've all been joining Twitter, MySpace, FaceBook and some of you are even writing blogs hosted by Blogger, Wordpress and others.

I think that's great. You're marketing your companies and getting your names and faces out there for the world to see (and find you.) But writing a blog provides a lot of valuable "content" that search engines love to see on websites. Content, especially content that is regularly updated, is what attracts Google, Yahoo!, MSN, and all those other search engines to find your website and push you up in the rankings on their pages.

If you're high on those "organic" rankings for your site, it means people could find your company and your services... at no cost. Yes, free! No yellow pages ad, no paying for flyers, no... construction lead fees. Bad for me. Good for you.

So, instead of giving all your content to Google and Yahoo!, give all that credibility to your website. You can still use Blogger and Wordpress to host the blog, but put it on the FTP server (ask your hosting company) that you're using to host your company's website.

The same people who helped you set up your site can help you make sure your blog is also on your site, giving you lots of fresh and helpful content to boost your website up naturally. This blog, for example, is written using Google's Blogger. But you wouldn't know it because the blog URL (or, website address) is www.ConstructionDeal.com/ContractorBlog. But to the search engines, even Google, it looks like it's part of our website because it's hosted on our FTP server instead of on Google's servers.

Which means I get the credit for what I write and not Google. And you should to. Talk to your hosting company if you write a blog and it's not part of your website. You can transfer everything you've ever written over to it. And it's not hard at all.

Labels: Blogging, construction jobs, ConstructionDeal.com

Are you a quality contractor? Are you looking for construction leads? Home improvement leads? Or other service professional job leads?

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Simply tell us about the services you offer and we'll match you to homeowners who have remodeling, repair, installation, and renovation projects.

We have construction job leads, general contractor leads, and job leads for all other service professionals in the home improvement industry. We also have quality commercial, light commercial and industrial job leads for commercial contractors.

At ConstructionDeal.com, you can get online leads and find more work.

• Expand your business! Get quality jobs leads for subcontractors, contractors, designers, architects, land surveyors, engineers, and handymen. We have available jobs in construction, renovation, home repair, commercial remodeling, and many more.

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If you're looking for more construction work and renovation job leads, submit your details online. It's free to register. It's an easy process. Tell us about yourself and the services you provide and we'll help you work more!

Many contractors are looking for free construction leads. At ConstructionDeal.com, we offer a free contractor directory listing and free registration. And our residential and commercial job leads are very inexpensive.

Labels: construction jobs, Contractor Jobs, Contractor Leads, Subcontractors Jobs

The LA Times reports from California. "John Rockey has been hanging drywall for 35 years, and he's seen it all in the boom-again, bust-again Antelope Valley housing market. By the time a new building spree peaked in 2005, Rockey's payroll had again grown to 200. Now, his Lancaster-based Progression Drywall Corp. is down to 50 employees, and he's got a serious case of deja vu."

"'This is looking like 1990 all over again,' he said."

"'A lot of people are panicking,' said Jaimes Gumaro, a North Hollywood real estate agent who has a listing in a Palmdale neighborhood dotted with homes for sale. 'They were expecting to have all this equity, and then it suddenly stopped. Now, they just want to get their money out of it. They're saying, 'I'm outta here.'"

"Foreclosure sales in Lancaster and Palmdale rose to nearly 200 between Dec. 1 and Feb. 28, an eightfold increase in a year. Notices of default more than doubled over the same period a year earlier, totaling more than 1,000 from December through February."

"'Now, we have all these folks who can't afford their homes and their loans are adjusting, literally by the thousands,' said Peter Terracciano, who founded his Palmdale brokerage in 1990, as the housing boom began to go bust."

"Rockey gets most of his work from large builders. 'Every customer has a different story every day,' he said, 'and they're not good stories.'"

"He recently learned that the builder of 300 new houses he'd been lined up to drywall in Rancho Cucamonga abruptly halted the project, costing Rockey $4 million in work. 'We're getting killed,' he said."

Labels: construction jobs, Construction News

Industry News from ContractorMag.com: "Nonresidential building continues to outperform the residential segment, and construction industry job and wage figures reflect that trend, said Ken Simonson, chief economist for the Associated General Contractors."

"He said he was looking on the bright side when commenting on a Jan. 3 report from the U.S. Census Bureau that shows the value of construction put in place in November 2006 totaled $1.184 trillion at a seasonally adjusted annual rate, down 0.2% from the upwardly revised October total. "

"'I must point out there was lots of good news hidden in today's seemingly gloomy construction spending report,' Simonson said. 'Nonresidential spending showed a strong 1.2% gain in November, even after the October figure was revised from a small loss to a 1.1% gain. '"

"Meanwhile, residential construction spending shrank again in October by 1.6%, bringing the cumulative decline to 11% since peaking last March.'"

"Simonson said he has observed-'no letup in the torrid pace of private nonresidential spending growth.'"

"'For instance, lodging construction — mainly hotels and resorts — jumped 4% in November and was up 71% from the November 2005 level,' he said. 'Electric power construction charged ahead 4% in November and was 18% higher than a year ago. Manufacturing construction had a 1% gain for the month and was 11% ahead of the year-ago level. Health-care construction, mainly hospitals, gained 0.4% for the month and 20% compared to November 2005."

"'The diverse commercial sector, with strong gains in multi-retail and warehouse components, tacked on 1% in November and 11% compared to the year-ago month.'"

"'A closer look at the private residential totals shows new multifamily construction gained 1% in November and 16% compared to November 2005, while improvements rose 0.6% and 6.7%,' Simonson said. 'But those numbers were swamped by declines of 3.1% and 20% for new single-family construction."

"'Energy-and power-related construction, hotels, hospitals and rental housing will all perform well, while single-family and condo construction will sink the totals.'"

"Commenting on the January employment report from the U.S. Bureau of Labor Statistics, released later, Simonson noted that nonresidential construction jobs jumped during the month, while employment related to home building fell off. "

"'In January, construction accounted for one out of five net new jobs in the entire non-farm economy — 22,000 out of 111,000,' Simonson said. 'Not bad for an industry that constitutes less than 6% of total non-farm employment. Nonresidential construction employment growth has been sizzling."

"'Over the past 12 months, nonresidential building contractors and nonresidential specialty trades have boosted employment by 160,000, or 5%.'"

"Simonson said that the job growth should translate into additional nonresidential construction work in the next several months. In contrast, residential building and specialty trades employment slipped in January, bringing the year-over-year decline to 84,000 jobs, or 2.5% of the January 2006 total."

"'I expect home builders will continue to shrink for most of 2007, until they see a marked upturn in home sales,' Simonson said."

"'Part of this reflects a changing mix of construction jobs, away from lower-skilled home building and remodeling to skilled nonresidential crafts,' Simonson said. 'But it may also indicate that contractors are ratcheting up pay to find the workers they need.'"

Labels: Construction Industry, construction jobs, Construction News

Construction Job News from the Daily Press: "It's no secret that construction has slowed on new homes in the Victor Valley and workers are feeling the pinch. 'Since the beginning of the year, our lobby’s been full,' said Robert Lovingood, president of (a) local staffing firm. 'We have a steady stream of people looking for work…especially those in the construction trades.'"

"Few semi-skilled workers, especially those who have been working on mass-produced tract homes, are equipped to transfer over to commercial work. 'They're programmed to do one thing in every house,' said Chris Cox of Cox Plumbing. 'They're set up to do one particular phase of plumbing, and that's all they know. It's electricians, it's framers, it's everything. They only get the opportunity to do just ceiling fans, just switches and plugs.'"

"For workers who know houses, life is bound to be tough at least until summer, possibly another year, said economist John Husing. 'You have to work off the inventory of new homes that was just completed,' he said. 'A lot of builders kept right on building up until December because they didn't want vacant lots on their books.'"

"Some construction workers are transferring over to warehousing work, said Gloria Stanton, manager of the Victorville office of Select Personnel Services. 'I'm hearing, I'll do anything,' she said, not only from construction workers but from educated professionals such as paralegals and accountants."

"Cox said out of 10 housing contractors he used to work for, he is only working for two at the moment. 'It's a cycle. It's like anything else,' he said. 'You ride the wave until it dies and wait for it to pick back up.'"

Labels: construction jobs, Construction News

Construction job news from the LA Times: "Some of the decline in retail hiring reflected the housing slump. Hiring among dealers of building materials and supplies was down 2.5% in December compared with a year earlier. Construction remained the biggest drag on the economy, shedding 15,700 jobs in 2006, more than any other sector."

"The question now is when the housing market will hit bottom. Many economists are projecting that the slump in home sales will be over by the end of the year."

"'That may be wishful thinking, said Chris Thornberg, a former UCLA economist. 'I keep hearing that the real estate markets are going to turn around, and it never ceases to amaze me,' he said. 'These cycles take two years, top to bottom, when they pop. We're only a year into it. If anything, this is different because the bubble was so much larger.'"

And news from the Orange County Register. "In the 12 months through December, Orange County's construction industry added jobs at a 0.7 percent annual rate, much slower than the industry's 7.2 percent growth in 2005."

From San Diego's Union Tribune: "In San Diego County, construction firms shed 1,800 workers during December and real estate firms cut 500 positions, according to data released yesterday by the California Employment Development Department."

"During 2006, construction firms in the county lost a total of 5,000 jobs, more than 5 percent of their work force. Statewide, construction firms have axed 15,300 workers, a 1.7 percent loss. And economists say the losses will probably continue."

"'I expect further contraction on single-family home construction,' said Kenneth Simonson, chief economist for the Associated General Contractors of America. 'It's hard to say when that will end. It's really a question regarding how long potential home buyers think they can hold on. Right now, home prices are still dropping and buyers are waiting to see when there will be a bottom of the market.'"

Labels: Construction Industry, construction jobs, Construction News

From the Miami Herald on the Construction Job outlook in Florida: "Construction jobs have taken the most direct hit. Job growth in the industry throughout the state has slowed from a peak of 12.8 percent in mid-2004 to 5 percent in November, according to the most recent state figures. Palm Beach County home builder DiVosta Building plans to lay off half of its 552 workers next month."

"Cement maker Titan America has seen a 20 percent drop in its concrete block business alone, which is almost solely for residential building. At full tilt last year its Pennsuco plant in Medley was running three shifts to keep up with demand. In the fourth quarter, it cut back to just one shift at the block plant."

"'Obviously, construction is in a pretty significant slowdown,' said Florida division president Hardy Johnson. The company has shifted its focus from providing for residential sector clients to commercial builders and for Department of Transportation work."

"'I think that '07 is going to be a flat year for us,' he said."

Labels: Construction Industry, construction jobs, Construction News

From the Colorado Gazette - "What a difference a year makes. In 2005, home construction in Colorado Springs and El Paso County soared to a second straight record-setting year. In 2006, the pace of home building fell to its lowest level in more than a decade."

"The 2006 slowdown delivered a blow to the construction industry, which employs thousands of carpenters, framers, painters and other workers. Several builders, from local firms Vantage and Classic Cos. to national companies such as Pulte, said they laid off workers when production sagged. The slowdown also was felt among plumbers, electricians and other subcontractors."

"Heidi and Greg Smith, who own Affordable Plumbing and Heat Inc. in Colorado Springs, said they were hit by a one-two punch in 2006. First, prices for copper and other materials skyrocketed. When the company hoped to offset those higher costs by doing more work, home builders cut back on construction. The result: Affordable Plumbing laid off 26 of 47 employees."

"'Instead of the subs being able to recoup the losses, building is down by 25 percent,' Heidi Smith said. 'So now it's a fight to get the work, and you have to bid as low as you possibly can to undercut everybody else to get the work.'"

Labels: Construction Hiring, construction jobs, Construction News, Small Business Advice

Labels: Construction Hiring, construction jobs, Construction News

Construction job news from the Contra Costa Times: "It was bound to happen. The job market for home building in the East Bay has begun to stumble, halting a strong run. The pace of employment expansion in the housing sector is a fraction of what it was earlier this year."

"Only last spring, residential construction was booming in the East Bay. Jobs in home construction were being added at a 10 percent annual rate in April and May. But by October, jobs were being added at a 3.5 percent annual rate."

And from Florida's TC Palm: "Layoffs at another leading Treasure Coast homebuilder again raises questions as to when the new-home market will rebound. DiVosta Building Corp. executives said Tuesday they will lay off 218 employees in the Treasure Coast and Palm Beach County."

"'I think this is a continuing indication of larger national builders downsizing to accommodate the changes in the residential housing market,' said Don Santos, past president of the Treasure Coast Builders Association. 'I think there's a lot more of this going on in the field, but we don't hear about it.'"

Finally, from the Associated Press: "Alex Barron, who follows homebuilders for JMP Securities, said the industry will get worse before it gets better. He said with so much inventory, builders like Hovnanian must cut their prices to compete."

"'Until those inventory levels come more in line with historical levels, it's going to be very difficult for builders to show an improvement,' he said. While Hovnanian posted a large write-off, he said the company is being more realistic than other large homebuilders 'about how deep this current downturn is.'"

Bookmark the Contractor Update and check back with us on a regular basis for more news on the construction and remodeling business outlook. We are a great resource for news, trends, and information on the industry.

Labels: construction jobs, Construction News

The Worcester Telegram in Massachusetts: "In times of tough housing markets, the remodeling industry has historically seen a boost as homeowners tap into their equity to fix up their properties to sell or meet their changing needs. But after years of double-digit home price appreciation, the market is in the midst of a correction."

"Area home prices have dropped more than 4 percent since the first of the year, and Central Massachusetts remodelers say their jobs have slowed down or been scaled back from what they were even a year ago."

"'I've seen everything since the early 1980s,' said William J. Morin, owner of Bill Morin Construction in Northbridge. 'I've been through three recessions. I haven't seen it this bad. I would average almost a call a day, but now I’m not getting a call a week.'"

"Guy A. Webb, executive director of the Central Massachusetts Builders Association, said some homeowners who would pay for remodeling projects with their home equity have probably already used it for other things."

"In his own contracting work, Mr. Webb said, more than half of his customers used the equity in their homes to pay for their projects. 'Tapping into equity is very common,' he said."

"'I think my membership is pretty well-prepared for this,' Mr. Webb said. 'They scaled down their operations already. I assume some let go of some employees. A lot of builders and remodelers… just use subcontractors now. They're just calling them less.'"

"Kenneth R. Gaumond, owner of New Surroundings in Auburn, said the housing market correction has not resulted in more home improvement spending, as it had in the past. 'Spending is down everywhere,' he said. 'People are still more likely to adapt their home to their needs. It's not scaring people away from projects, but they're scaling down their wish list.'"

"During the housing boom, homeowners took advantage of their growing equity, using home equity lines of credit for college expenses and purchases that could be paid off more cheaply than with a credit card's higher interest rate."

"'They're continuing to borrow, but at a slower pace,' said Gus Faucher, director of macroeconomics at Moody's Economy.com. 'Price growth (in homes) has come to a halt. People have been borrowing against their equity. And there is less equity. People are strapped. There's less ability to borrow.'"

"George Yacik, a VP a New Jersey firm that studies the home mortgage market and home equity lending, said the dollar volume of home equity borrowing in the Worcester area is about half of what it was last year. Dropping house prices have an effect, too, he said. 'That certainly plays a role. Their equity is not growing like three to five years ago. People have been tapping their equity all along.'"

"Walter Plew, owner of Gemini Home Improvement in Worcester, said that with the slow market and oversupply of houses, there is evidence they may be doing less. 'Last year and before, with the market up, there was more money available to spend,' he said. 'They've dropped doing the big kitchen and bathroom. For now, they're doing painting.'"

"'The lumberyards, Home Depot, the subcontractors, they all say it's dead. Builders are going into the remodeling business. That was always the golden egg when home sales dropped off. There's a lot more people in the business now,' Mr. Morin said. 'Mr. Morin, who has been in business 21 years, said the volume and scale of his jobs now are less than in previous recessions."

"'In the past, when new construction slowed, home improvement increased,' Mr. Morin said. 'Now, new construction and sales of existing homes are in the gutter. Values are dropping as well. Home improvement is off. People have less disposable income than they had five years ago. I make less money now than I did five years ago.'"

Labels: construction jobs, Construction News, Remodeling Jobs

From USA Today:"Dozens of sawmills around the country are laying off workers, shutting down temporarily or trimming hours, as a steep drop in home building hits demand and prices. 'In lumber, basic economic rules apply: supply and demand. The demand dropped off quickly, and so did the price,' says Joe Kusar, VP of Tolleson Lumber, the largest lumber maker in Georgia."

"In Northern California, Pacific Lumber said Dec. 1 that it was laying off 90 people, or 19% of workers. 'A (price) decline of this magnitude is virtually unprecedented in the last 20 years,' says Pacific Lumber spokeswoman Andrea Arnot."

"Tim Cochran of an independent newsletter specializing in softwood lumber, calls the current downturn the longest bear market since 1990. '(Prices) went up so high with the housing boom … and so when they go up hard they just go down that much harder,' Cochran says."

The Chicago Sun Times: "Executives of several of the largest home builders predicted that inventories would decline, and prices and home starts would rise, in the latter half of 2007, as they spoke at the 10th annual Homebuilding Conference."

"Toll Brothers Inc. CFO Joel Rassman declined to predict when the market would hit bottom. 'Nobody can know when the bottom is,' Rassman said. 'I think there's a reason to believe that when the big builders control 50 percent to 60 percent of a market, they'll probably have to eat each other,' he said."

The Pasadena Star: "A housing slowdown affects construction, loan agents, landscapers and many other related businesses, said Michael Carney, executive director of the Real Estate Research Council of Southern California. 'Concern for the housing market as a whole may spill over into consumer spending,' Carney said."

"Builders are reacting to sales declines by not getting permits to build new homes. California's total units in permits is expected to decline 16 percent in 2006, and that number could be closer to 26 percent, Carney said. 'Developers are clearly adjusting as fast as they can,' Carney said."

Labels: Construction Hiring, construction jobs

From Bloomberg: "The housing slump is also resulting in job cuts at construction companies and related industries. Builders shed 26,000 jobs in October, the most since February 2003, the Labor Department said. 'The weakness in orders and obvious further declines in housing-related activity suggests more weakness in coming months,' said Steven Wieting, managing director at Citigroup Global Markets."

"'Construction and manufacturing are certainly the anchors weighing down growth at the moment,' said economist Joshua Shapiro. 'Consumer spending is hanging in there, but there are certainly a lot of crosscurrents that will lead to pretty anemic growth in the fourth quarter and probably the first quarter as well.'"

Top 10 Tips to Surviving an Economic Downturn

Labels: construction jobs

Service companies in the construction industry are constantly changing, expanding, and evolving. Bringing in new workers to handle those adjustments is a key component to any successful business. Here are some tips on how to make sure you avoid mistakes when you're hiring new full-time, part-time or contract employees:

1. Screen your Applicants - Make sure you investigate potential employees by doing background checks to look for past problems. Check for accuracy on their resumes or applications. Look for any criminal records. You might even consider drug testing and, if they're going to be handling money, credit checks. Spending a little time and money at the beginning could save you a lot of time and money down the road.

2. Interview your Applicants - Even if the potential employee is a strong referral, you want to make sure you ask questions and evaluate the person. You need to know how well that person communicates, how they handle situations, and if they can do what they say they can do on their resume. Interviewing is more than just asking where they see themselves in 5 years. Make sure you ask questions that put them in difficult situations to find out how they would react. Look for answers that offer multiple alternatives or options to see how creative they can be. Ask questions that give you an idea of how well their personality will match with yours.

3. Hire the Right Person - Sounds simple, but it's not. You may have two top candidates for a position. One has superior qualifications but you know your two styles will clash. You may need to go with the less qualified person, knowing that you'll be able to work together and bring that person up to speed. There will be a greater chance that this employee will stay become part of your team. The more qualified applicant could end up being a cancer to your other employees, your clients, and you.

4. Be Prepared - Know everything you can about the job you're hiring this person for. He or she is going to ask a lot of questions and you'll need to know the short and long range plan for the position, the salary range, potential for growth within the company, and skill requirements for the job. You should know what is needed from the position more than the potential employee. If you are not prepared, you may find out too late that you don't have the right person for the job.

5. Be Realistic - Don't promise the world to a potential employee if you cannot deliver it. And do not expect a potential employee to be able to deliver the world to you. No applicant is perfect. It's not a good idea to set up or expect unrealistic performances - you will both be disappointed and the relationship will not last.

6. Get it in Writing - Whatever promises you make to each other, put down all the details in a written contract or offer. It can avoid problems that might come up later. By listing how long the employee or subcontractor will be engaged, how much will be paid, what benefits are included, and what the job requirements are, you can prevent arguments and even lawsuits. Be as detailed as possible with any offer or contract you make and you'll be starting out your new relationship on the right foot.

Labels: Construction Hiring, construction jobs

From the Orlando Sentinel: "The phone has been ringing lately at Terry's Electric in Kissimmee, and many of the calls have been from electricians looking for work now that home building in the area has started to slacken.

Terry's, with about 550 employees, is happy to snap them up because the company is still busy with commercial-construction jobs, wiring schools and mixed-use developments across Central Florida.

Residential construction is slowing here and across the country, and layoffs have been thinning the ranks of home builders everywhere, raising fears of a job bust that could ripple through the rest of the economy. But the commercial side of the construction business is helping to buffer the downturn.

"The housing souffle has finished baking and is out of the oven and cooling quickly," said Sean Snaith, the UCF economist who heads the institute.

"There is some softening on the condo side, but the commercial side is strong -- for hospitals, large-box retailers, schools, infrastructure," said Gary Redwine, senior vice president of Resource, Acquisition and Management Services, a Tampa-based construction employment-and-training company known as RAMS.

"Most nonresidential-construction people say the labor market is tight," even with the home-building slowdown, said Ken Simonson, chief economist for Associated General Contractors of America. "They still have a hard time finding qualified workers and subcontractors."

Nationally, the outlook for commercial construction is strong for hotels and resorts, hospitals and health-care facilities, schools, and water and sewer projects, said Simonson, the industry economist.

"Retail construction will suffer, along with home building," he said, but overall, "unemployment remains low, and construction workers in general should be able to find jobs."

Some skills, such as concrete finishing, plumbing, wiring, and heating and ventilation, are transferable from residential to commercial jobs to some degree, Simonson said. Specialty carpentry jobs are not as easily transferred, and not all subcontractors have the size, or "scale," to work commercial projects when residential contracts dry up, he added."

Labels: construction jobs