Fellow blogger Chris Cheatham posted an interesting article on his The Electronic Claim blog about ways a contractor may profit from the labor shortage. The blog is based on an article, 5 Ways to Profit from the 2014 Labor Shortage, published by McGraw Hill-Dodge. An important takeaway deals with how subcontractors are responding to the greater need for their services and whether they are profiting from this change in the marketplace.
As the article notes, the need for competent subcontractors is rising, but the number of competent subcontractors is not. This may present a situation where a subcontractor can get back to selling the experience and expertise that they bring to the table instead of striving for the lowest bid for the job.
The article further notes that subcontractors in high demand trades may also be able to increase margins on the job. Of course, bids will still have to be in line with competition, but if a subcontractor has a track record of successfully completing projects, a general contractor may be more inclined to use that subcontractor, even though the bid is higher than some of the lesser known competitors.
At the end of the day, the article reemphasizes the old adage, do good work and you will get more work. But, the marketplace and labor shortage may also present opportunities to increase margins on projects, making your work more profitable.
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