Building Industry Magazine - July 2012 - (Page 103)

projects” that actually have long been completed. This could be a major turn-off to a potential client who sees it not only as annoying but unprofessional. to come up with suggestions and innovations. And reward them for ideas you end up using. Make Employee Training and Communication a Priority • First of all, it probably will cost you less in slower economic times to step up training or refresher classes, both in-house and at industry training facilities. Is there a new area for which you can provide training? An extension of the services and expertise you offer that also may bring in new business — more knowledge about green building, for example? • In addition to using down time in a positive way and perhaps arming your employees and company for busier times ahead, continued or stepped-up training in current and new areas is a testimony to a company’s commitment to the welfare of its employees, a powerful morale booster when you need it most. • And, of course, it all helps maintain or improve safety conditions, an area vital to your bottom line, from winning the bid to obtaining bonding and insurance. In researching a recent report on health and safety for Building Industry magazine, several of the industry leaders we spoke with expressed concern that it may be a temptation for some companies to cut corners on safety and training during a down period. • Keep your employees informed on what’s going on in the company. Schedule regular meetings. Allow them to be involved in decisions on saving money. Encourage them • If reduced revenue and lower profit margins are still major concerns, it is vital to maintain as much in highly liquid assets as possible. Remember, it is true that “cash is king,” especially in uncertain market conditions. Profitability is important, of course, but financial consulting experts agree that making sure there is enough cash is more important. They even advise converting excess or built-up inventory into cash. Follow the Money Trail communicating with owners and developers, utilizing its knowledgeable risk management, financial, accounting and consulting services to help you not only get through the rough times but even grow! • Retain close relationships whenever possible, with former and current customers, checking to see how they are doing. This might even help win back “lost” or abandoned clients. • Check and recheck all bids. Those awarding public projects report that bids are rejected at times because they do not to respond to everything in the bid solicitation. They advise that subcontractors in particular should make sure scope of work and pricing is accurate, double-checking all inclusions and exclusions. “Keep communication lines open with all team and financial partners.” • Tighten up on receivable collections. We know, Hawaii is not a “hard-nosed” market and handshakes still seal some business deals, but in tough times, it is essential to improve the turnaround time on receivables. To make this a more comfortable and positive move, keep communication lines open with suppliers and venders and other business team members to work with them on cash flow problems they may be experiencing. • Keep communication lines open with your financial partners. Meet with your banker to cement a good relationship. Ask for advice and ideas. Have open and honest discussions with your surety company. A surety firm can be invaluable in a difficult economic market, www.buildingindustryhawaii.com | 103 That’s about all we have room for in this report. But one other point stressed by many experts is to stay involved in industry organizations. You especially need the support and advocacy of these groups during difficult times. Take advantage of their help and the help available to you from your financial partners — and your employees. You’re all in this together. BI http://www.buildingindustryhawaii.com

Table of Contents for the Digital Edition of Building Industry Magazine - July 2012

Contents July 2012
Hawaii’s Top 25 Contractors
Educating for the Industry
Surviving a Tough Economy
Top Eats
News Beat
Forest City Completes $312M Neighborhood
2012 CAK Home Show Streams Live
Keokea Beach Park Renovation Completed
La Tour Bakehouse Partners with RevoluSun
Pier 29 Construction Complete
NAIOP Awards Honor Commercial Development
NAVFAC Awards $46.6M Contract
Departments
Datebook
Best Practices
Contracts Awarded
Concept to Completion: Marriott’s Ko Olina Beach Club, Phase 5
Low Bids
Spotlight on Success: BEQ, MCBH
News Makers
New Products
July's Features

Building Industry Magazine - July 2012