Construction Executive - September 2016 - 14

CONSTRUCTION EXECUTIVE | SEPTEMBER 2016 CONSTRUCTION MARKETS 14 Sample Market Size Trends of Detailed Commercial Categories $300 Market Size (Millions) city centers (e.g., Portland, Seattle and San Francisco). As such, the first approach is to compete at the fringes of the cities, learn the market, figure out how to compete and gain a foothold with key customers. This can be accomplished with one or two projects. Then, West Coast Contracting can work on moving into the saturated city centers, which will have more work available. Now that the strategy is in place, the tactical planning begins. The margins available are slim in low-end commercial and office work, even at the outskirts of the cities. West Coast Contracting will have to focus on reducing its cost structure to be able to compete and win projects. One advantage it has is flexibility in crew structure. To take advantage of this, West Coast Contracting will rely on its strong supervision and core workforce to travel into the outskirts, paying them per diem for their travel but without having the burden that other contractors have on their wage packages. Local labor can be hired as a mix of skilled and unskilled crew members to keep the composite rate low. The second tactic West Coast Contracting will use to enter these new markets is to get ahead of the technical elements of the work with in-house training. Although the company's carpenters and masons are well trained, West Coast Contracting will dedicate one full week (paid) for the workforce to tackle this unknown market, using a mix of technical learning and practicing for integrating risk on Office $250 General Commercial $200 Manufacturing $150 $100 Lodging $50 $0 Amusement & Recreation 2009 2010 2011 2012 2013 FIGURE 2 the jobsite with an unknown labor force, unknown customers, and unfamiliar means and methods. They will use agile construction principles, such as Work Breakdown Structure, productivity measurements and short interval scheduling, to gain information about the projects and learn as they go. Taking Ground Once the foothold is secure, the next step is to expand on its capabilities and flexibilities to be profitable and disrupt the market by providing lower costs and better outcomes to customers. The company then must gather additional market intelligence to understand the current local labor costs and composite rates in the city centers so it can structure its cost just below the going rate to be competitive. In any type of work, segregating work and externalizing it from the jobsite are the biggest opportunities to reduce risk. Reducing manipulations of final assemblies onsite through prefabrication helps diminish the cost and risk onsite, especially in an unknown market with an unknown labor force. One advantage West Coast Contracting can leverage is an established prefabrication operation, where it can service any projects locally, regionally or nationally, regardless of jurisdiction and whether the job is prevailing wage. In addition, as distribution methods evolve, West Coast Contracting can manage its inventory and vendors by using a fully integrated logistics solution. Every piece of material and equipment can carry information about its purpose, its path to final location and installation, its timing and availability, and more. By

Table of Contents for the Digital Edition of Construction Executive - September 2016

Industry Insider
In Brief
Washington Update
Construction Markets
Risk
Safety
Workforce
No Bounds to Success
Special Section: Construction Technology
Business Development
Community Outreach
Viewpoints
Construction Executive - September 2016 - Cover1
Construction Executive - September 2016 - Cover2
Construction Executive - September 2016 - 1
Construction Executive - September 2016 - 2
Construction Executive - September 2016 - 3
Construction Executive - September 2016 - 4
Construction Executive - September 2016 - 5
Construction Executive - September 2016 - Industry Insider
Construction Executive - September 2016 - 7
Construction Executive - September 2016 - In Brief
Construction Executive - September 2016 - 9
Construction Executive - September 2016 - Washington Update
Construction Executive - September 2016 - 11
Construction Executive - September 2016 - Construction Markets
Construction Executive - September 2016 - 13
Construction Executive - September 2016 - 14
Construction Executive - September 2016 - 15
Construction Executive - September 2016 - Risk
Construction Executive - September 2016 - 17
Construction Executive - September 2016 - 18
Construction Executive - September 2016 - 19
Construction Executive - September 2016 - Safety
Construction Executive - September 2016 - 21
Construction Executive - September 2016 - Workforce
Construction Executive - September 2016 - 23
Construction Executive - September 2016 - 24
Construction Executive - September 2016 - 25
Construction Executive - September 2016 - No Bounds to Success
Construction Executive - September 2016 - 27
Construction Executive - September 2016 - 28
Construction Executive - September 2016 - 29
Construction Executive - September 2016 - 30
Construction Executive - September 2016 - 31
Construction Executive - September 2016 - 32
Construction Executive - September 2016 - 33
Construction Executive - September 2016 - 34
Construction Executive - September 2016 - 35
Construction Executive - September 2016 - 36
Construction Executive - September 2016 - 37
Construction Executive - September 2016 - 38
Construction Executive - September 2016 - Special Section: Construction Technology
Construction Executive - September 2016 - 40
Construction Executive - September 2016 - 41
Construction Executive - September 2016 - 42
Construction Executive - September 2016 - 43
Construction Executive - September 2016 - 44
Construction Executive - September 2016 - 45
Construction Executive - September 2016 - 46
Construction Executive - September 2016 - 47
Construction Executive - September 2016 - 48
Construction Executive - September 2016 - 49
Construction Executive - September 2016 - 50
Construction Executive - September 2016 - 51
Construction Executive - September 2016 - 52
Construction Executive - September 2016 - 53
Construction Executive - September 2016 - 54
Construction Executive - September 2016 - 55
Construction Executive - September 2016 - 56
Construction Executive - September 2016 - 57
Construction Executive - September 2016 - 58
Construction Executive - September 2016 - 59
Construction Executive - September 2016 - 60
Construction Executive - September 2016 - 61
Construction Executive - September 2016 - 62
Construction Executive - September 2016 - 63
Construction Executive - September 2016 - 64
Construction Executive - September 2016 - 65
Construction Executive - September 2016 - 66
Construction Executive - September 2016 - 67
Construction Executive - September 2016 - Business Development
Construction Executive - September 2016 - 69
Construction Executive - September 2016 - 70
Construction Executive - September 2016 - 71
Construction Executive - September 2016 - Community Outreach
Construction Executive - September 2016 - 73
Construction Executive - September 2016 - Viewpoints
Construction Executive - September 2016 - 75
Construction Executive - September 2016 - 76
Construction Executive - September 2016 - Cover3
Construction Executive - September 2016 - Cover4
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