7 Reasons for Starting a Construction Company in 2019
As an example, the rise of Uber, Lyft, and other ride-sharing apps created a demand for a third-party app that will tell you the cheapest fares at that exact moment.
The disruption of the hotel and taxi industry has economists and entrepreneurs wondering: “Which established industry is going to get disrupted next?” Look no further than the Construction industry. Transblue, a West coast Construction Management Company, has assembled a list of “7 reasons to Starting a construction company in 2019”
1. Economic Favorability
There’s never been a better time to start a construction company. The construction industry as a whole is on track to grow by 4% in 2019; this demand needs to be fulfilled by adequate and innovative supply.
Not only is the economic need in favor of the construction industry but starting a construction company or any company right now is as good a time as any with interest rates still relatively low and banks still very willing to issue out business loans to new companies.
2. A Technological Shift in an "Old" Industry
The construction industry has been around for many many years unlike some of the tech sub-industries that have only existed in the last decade. While the large scale industrial and real-estate construction industry will remain the same. The private home and general contractor construction industry is now more accessible than ever to customers. However, the established “Legacy” Construction Companies have done little to increase innovation in their industry, the combination of established demand and unmet technological need in the residential construction industry makes it a relatively Blue Ocean.
Customers want to use their smartphones to look up the best contractor for the job and even plan out their home renovations through digital imaging technology. Tech companies are taking note of this demand and are developing products for construction companies to use. Products like “BUILDERTREND” and “Angieslist” are just a few of the software products being used by construction companies to build their customer portfolio.
3. Existing Companies Offering Franchise Opportunities
There’s a lot that goes into learning how to start a construction company, and not just on the financial side. You’ll have to come up with a great business plan, wade through local and state registration, find great staff, and come up with a killer marketing strategy that sets your business apart.
You can avoid the growing pains of figuring everything out for yourself by buying into an existing successful franchise. Many Construction companies are aware that their product is Ripe for Franchising and they are looking for entrepreneurs to help them expand throughout the nation.
4. Competition? What Competition??
You don’t always need to develop something brand-new. If you can offer an existing product at a lower price point, better quality, or ideally, both, you’ll have plenty of customers. Better yet, if there’s an existing demand.
When it comes to the construction industry, there is an abundance of contractors who are trying to underbid one another. While this strategy might get you a customer, it is terrible news for the bottom line…profits.
Due to reputation being ever-present on sites like Google and Yelp, Customers today will choose the most reliable company who is going to deliver on customer service and quality of work. They also understand that the cheaper option will more often than not turn out to be the most expensive one factoring in low quality of work and headaches.
5.Loss of Expertise
With an old industry like the construction industry, many of the experts on the field have retired or are on the verge of retiring, while the American workforce as a whole shifts to the tech world. Even though Construction experts are on the decline, the need in this field is still on the rise.
Consumers today are less likely to do home repairs and projects on their own and prefer to hire an outside contractor. For this reason, professions like plumbers and electricians have been able to charge a premium for their services: lack of competition and abundance of need.
Luckily, we have the internet and other experts to learn from. Where a curious entrepreneur can learn all of the crafts of the trade to stand out from the competition. At TransBlue we have stacked our management staff with all areas of construction management expertise.
6. An underserved demand.
You don’t need to reinvent the wheel if there aren’t enough wheels. Many people start successful businesses after noticing a gap in the market. If your city is experiencing a population growth and chances are that their homes will need construction needs.
Regardless of population growth home’s and properties depreciate with time, use and weather. Trends and innovation also motivate people to be continually renovating and giving their homes makeovers. So, there will always be a demand for interior and exterior construction.
7. Links to the Economy.
The construction industry in the contribution it makes to the economy.
The impact on the economy is not only affected by the number of jobs offered by the construction industry but also the number of jobs it assists in creating. For example, working on a new office building is making a physical change to the economy as well as helping to expand and grow the environment economically.
Knowing that you are making an active difference and impacting the economy positively, is rewarding in itself. But also knowing that even if the economy is down, you will still have opportunities in the construction servicing industry is having your cake and eating it too.
To finish, when starting a construction company, you might be concerned with the tools of the trade. For instance, if you’re thinking massive reels of blueprints, hammers, and nails, aren’t items you’d like to deal with on a day to day basis, you’d be mistaken in your mindset. The manual construction tools and processes of yesterday are very different from the highly-technical applications and devices emerging on job sites today. As construction projects get more advanced and more stakeholders are involved, technology has become a necessity on job sites and allows workers to learn and apply new skills.
For construction jobs, this means that workers will have new opportunities to work with advanced technology firsthand. Some of the standard “tools” of construction now include mobile construction software and document management systems and disruptive technology like BIM and drones. Furthermore, skilled field workers are now operating some of the most sophisticated machines in the market making construction sites look more like a futuristic scene than a job site. The good news is that the future will continue to get bright with technology use on job sites. The industry is just finally making the digital transition and construction professionals are wising up on the improvements to their bottom lines that they can only achieve with the help of technology.
Due to the influx of technology and career opportunities that construction offers, the workforce is evolving. As a result, more women and minorities are choosing to take jobs in construction. The industry currently has a sizable Hispanic representation and companies are already rethinking their strategies to recruit and retain more women talent. Although the industry still has ways to go to make significant improvements in training and recruiting to create a more balanced workplace, they are surely making changes for the better.
In addition to the industry getting more diverse, it’s also getting younger. With more Boomers on the verge of retirement, companies are actively recruiting more Millennials for construction jobs to fill their roles. For a Millennial looking to start a career right after high school, construction is one of the few industries where it’s possible to begin without four years of college. Even for those finishing up a degree, there are plenty of apprenticeships and internships available to give younger generations a taste for what construction jobs are like.
Let’s face it, the 9 to 5 work cubicle environment simply isn’t for everyone—but the idea of it might be so ingrained in your mind (or your parents’), that it’s hard to think about a career where a desk isn’t your central station. Although some construction professionals still have a steady desk job, many construction jobs are done outside the office and trailer. Whether you’re in the field or meeting with other project stakeholders, careers in construction are more often than not very active and involve engaging in many face-to-face conversations to solve problems.
Starting a construction company in the new construction industry offers exciting new opportunities to entrepreneurs looking for their next step in their career.