I want to use this week’s blog post to analyze the economic habitat that we as contractors exist in today: the construction industry. It, along with finance, has been the most tumultuous, jarred and altered industry in the US over the last decade.
The resultant landscape is cluttered and confusing. One of the most confusing parts of it to me is the construction technology niche. Many contractors are turning away from technology solutions in favor of legal pads and spreadsheets because of the difficulty in researching and discovering a solution that works for them.
Meteoric Rise
As the housing bubble peaked in 2006, contractors, software vendors and marketers alike feverishly hopped aboard to try and win a share of the profits. Venture capital and investment money flooded into the market, providing start-ups with millions of dollars in funding which they used to grow huge.
Just as in the dot-com bubble, making a profit was as easy as having a business in the construction industry. If your company was around during those days then you probably experienced the massive amount of business and jobs to be had.The rising tide of residential construction lifted all boats. If only it could have lasted, right?
Titanic Fall and Evacuation
The bubble burst in early 2007, leaving businesses scrambling to make money where it once was easy. Those who could evacuate the market did: many construction technology businesses had their funding pulled and were stripped down to skeleton crews while residential contractors became fiercely competitive.
A Cluttered Landscape
The result of it all? A scarred and cluttered landscape; difficult to navigate and full of pitfalls. The self-organizing ability of the industry was badly damaged during the housing crisis, something you’ve probably realized if you’ve searched for product reviews or other contractors to communicate with online.
If you’ve done any research into construction technology solutions like estimating software or project management, you’ve likely seen the many husks of companies that were founded during the bubble and subsequently abandoned. Their blogs sit inactive or deleted; they’re all but silent except for an occasional press release.
Time as a Solution
As time goes on the industry’s wounds will mend themselves and the construction product space will be clearer and easier to navigate.
In the short term, tech savvy contractors are doing their part by communicating via blogs, Twitter and Facebook, increasing communication and revealing which solutions work and which don’t. Part of the reason I started this blog was to reach out to my colleagues in the industry and improve the flow of communication.
What are your thoughts on the state of the industry? What communication hubs do you use, and why are they valuable?
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