The Economy Stinks

[IVAZ]

Things are starting to not look so good where I?m at. I work for an industrial construction company. We build units or entire chemical plants or refineries. At my job I?m the person that bids new work. So far this year I have bid 9 projects and we have been awarded none. We even changed our pay rates to the point where if we go any lower we would actually lose money to go to work. We spend a few weeks working on a bid go turn it in only to find 15 other contractors bidding on the same job.
Some of these competitors have people and equipment already on site due to them being the ones that maintain the facility. It is way cheaper for them (the competitors) since they due not have to mobilize people or equipment. Their bids end up lower than ours every time.
Today everybody at my work that had a company truck and gas card had to give them up to save some cost for the company. I?m not to upset since I?m still lucky to have a job. There use to be so much work that plants had only a few choices of contractors to choose from. Not many are building due to loans being an issue. I don?t like to curse but man, EDIT is going on with this economy.

 

[chicknwing]

Re: The Economy Sucks

Re: The Economy Sucks

I feel your pain, We have had to resort to bidding work so cheap that the company might make a hundred a day profit. But, thats better than taking a loss, and at least we are working.

TC

 

[Landscaping Wiz 808]

Re: The Economy Sucks

Re: The Economy Sucks

I'm with you guys, I sell landscaping and I've had to lower my GM% on bids going out so low that we're just breaking even on any newly awarded jobs. I HAVE to do this though to keep the cash flowing so I can avoid any further layoffs.

Also, prior to this "recession" I never had to bid against more than three other companies on any particular RFP. I finished a bid package last week that was going against 7 others! I second that EDIT

BOB

 

[204 Escape]

Re: The Economy Sucks

Re: The Economy Sucks

I am a union commercial contruction carpenter. Yes, I make good money. I know what the wage scales that are charged for the union, non-union side are. There really isn't any differences in the bids. (There IS in the pay to the workers).

2 years ago, I was working steady regular hours, than I had in years. I was getting so many overtime hours, that I couldn't hardly find time to take the boat out !!!!!!

Last year, and so far this year, it has been a real chore just to find a job. The downturn in the economy, is just killing us !!!!!!!!

I feel your pain !!!!!!!!!

EDIT JB

 

[eaglejim]

Re: The Economy Sucks

Re: The Economy Sucks

Well we had are worst December - January ever but we been running wide open since,bid one yesterday whole inside paint 2 coats on walls 3400.00 and she says whey out of her budget and I asked what was her budget she says 1000.00 I wished her well,to find out later in the day she is newly divorced I wondering why I couldn't make a connection we think she is mad at all males

 

[roscoe]

Re: The Economy Sucks

Re: The Economy Sucks

Things are starting to not look so good where I?m at. I work for an industrial construction company. We build units or entire chemical plants or refineries. At my job I?m the person that bids new work. So far this year I have bid 9 projects and we have been awarded none. We even changed our pay rates to the point where if we go any lower we would actually lose money to go to work. We spend a few weeks working on a bid go turn it in only to find 15 other contractors bidding on the same job.
Some of these competitors have people and equipment already on site due to them being the ones that maintain the facility. It is way cheaper for them (the competitors) since they due not have to mobilize people or equipment. Their bids end up lower than ours every time.
Today everybody at my work that had a company truck and gas card had to give them up to save some cost for the company. I?m not to upset since I?m still lucky to have a job. There use to be so much work that plants had only a few choices of contractors to choose from. Not many are building due to loans being an issue. I don?t like to curse but man, WTF is going on with this economy.

IVAZ, not to belittle your point on the economy, but just an observation.
Sounds like your company (like others) is under capitalized and poorly situated in the market, and is unable to handle any downturns in the economy.

I'm betting your owner either pulled all the cash out of the company on an ongoing basis, or there wasn't enough cash in the company even before the recession.

The competition has positioned themselves to get the jobs, already on location and with lower overhead.

You can only get jobs if most of the other companies are already busy and don't put in a bid on the job you want.

At times like this, every contractor ends up losing money on some jobs, just to stay in the game. If there is no cash to cover the losses..........

Maybe its time to start applying at the competitors.

 

[kamby]

Re: The Economy Sucks

Re: The Economy Sucks

Did PC repair for a while. Got bad enough we had to charge a $25 fee to go look and tell whats wrong with a customers computer, and write up a quote. A lot of this was done becuase it was more economical to replace the computer than to repair, unless it was some kind of high end server or the customer was really attached to their computer.

 

[CheapboatKev]

Re: The Economy Sucks

Re: The Economy Sucks

I'm with you guys, I sell landscaping and I've had to lower my GM% on bids going out so low that we're just breaking even on any newly awarded jobs. I HAVE to do this though to keep the cash flowing so I can avoid any further layoffs.

Also, prior to this "recession" I never had to bid against more than three other companies on any particular RFP. I finished a bid package last week that was going against 7 others! I second that WTF!

BOB

Bob...
Yeah, the Landscape market (most residential biz) is way down...My company sells to the biggest landscape fixture makers out there..biz is off, people are holding on to their $$, they can live without landscape lighting for awhile...but not food/electricity and all the necessities....

But..there are some outfits doing OK, upselling to long life lamps or to LED units...There is a very small clientile out there that has not been hit too hard yet and are still keeping up appearances and mainting their 2.5 million dollar homes..maybe some higher end prospecting?

BTW..please no intended disrespect, I am not trying to tell you how to run your biz, but it has worked for a few of my customers..thanks!

 

[JB]

Re: The Economy Sucks

Re: The Economy Sucks

Okay, guys. I can't get rid of all the bad language, but knock off the political remarks and bad language or this thread is history.

 

[IVAZ]

Re: The Economy Sucks

Re: The Economy Sucks

IVAZ, not to belittle your point on the economy, but just an observation.
Sounds like your company (like others) is under capitalized and poorly situated in the market, and is unable to handle any downturns in the economy.

I'm betting your owner either pulled all the cash out of the company on an ongoing basis, or there wasn't enough cash in the company even before the recession.

The competition has positioned themselves to get the jobs, already on location and with lower overhead.

You can only get jobs if most of the other companies are already busy and don't put in a bid on the job you want.

At times like this, every contractor ends up losing money on some jobs, just to stay in the game. If there is no cash to cover the losses..........

Maybe its time to start applying at the competitors.

I?m not going to state who I work for but the company that I work for is based out of Louisiana. It?s the same company that had the helicopter crash that killed 8 a few months ago. The owner is not dealing with this very well. This incident has set it us back dramatically.
Right now I?m still working and the division manager is my good friend. I will apply elsewhere if I have to later.
Right now we are working in Dumas TX and Selma NC on those "just to stay afloat jobs".
If you don?t see my point about the economy you must be in a really great situation. I?m happy for you.

 

[Landscaping Wiz 808]

Re: The Economy Sucks

Re: The Economy Sucks

Bob...
Yeah, the Landscape market (most residential biz) is way down...My company sells to the biggest landscape fixture makers out there..biz is off, people are holding on to their $$, they can live without landscape lighting for awhile...but not food/electricity and all the necessities....

But..there are some outfits doing OK, upselling to long life lamps or to LED units...There is a very small clientile out there that has not been hit too hard yet and are still keeping up appearances and mainting their 2.5 million dollar homes..maybe some higher end prospecting?

BTW..please no intended disrespect, I am not trying to tell you how to run your biz, but it has worked for a few of my customers..thanks!

Hi CheapboatKev,

I've had some mixed results with our residential customers. Some are battening down the hatches and even cutting back some services, but the others are just trudging right along and spending as though nothing's happening at all. Residential accounts only account for roughly 20% of my customer base though.

I'm lucky that I work in the D.C. Metropolitan area and we haven't been hit as hard as other areas of the country. Plus there are a ton of commercial & government contracts to be had around here...assuming the initial bid is priced right.

Once the economy recovers I'm hoping these properties that now have dirt cheap maintenance contracts will direct some of that extra capital in my company's direction in the form of new installations & landscape upgrades!

Hope springs eternal!

BOB

 

[CheapboatKev]

Re: The Economy Sucks

Re: The Economy Sucks

Hi CheapboatKev,

I've had some mixed results with our residential customers. Some are battening down the hatches and even cutting back some services, but the others are just trudging right along and spending as though nothing's happening at all. Residential accounts only account for roughly 20% of my customer base though.

I'm lucky that I work in the D.C. Metropolitan area and we haven't been hit as hard as other areas of the country. Plus there are a ton of commercial & government contracts to be had around here...assuming the initial bid is priced right.

Once the economy recovers I'm hoping these properties that now have dirt cheap maintenance contracts will direct some of that extra capital in my company's direction in the form of new installations & landscape upgrades!

Hope springs eternal!

BOB

Thats good news Bob..
Glad you are on th commercial side of the industry, you are def in the right town for commercial accounts. I also deal with all of the major maintenence companies in Las Vegas (the bulbs on top of the Luxor Hotel and the Bellagio is lit with my companies bulbs)

What I have learned over the years, is that most major properties will give a contract out to the lowest bidder, but that doesnt last too long as the company actually winning the bid can't service them due to their low margin bid..Usually calls start coming in and the properties are complaining about the lack of service from company "X" and all I can say is you got what you have paid for...
I have seen companies win and lose multi million dollar jobs within a few short months of unprofitable and low dollar unrealistic contracts, some have gone out of business because the properties believe it or not usually pay you on their schedule, like it or not and you need $$ in the bank to cover those big invoices from vendors like me!


I think I have hi-jacked this a bit off subject guys..sorry