I’m asked several times a year what changes that I see happening in the construction industry. This usually involves a discussion about the nature of construction. You know, there are only a couple of things that are certain: death, taxes and change. And that’s our business. But the changes that I see in the future, certainly, when you look at the 5- and 10-year horizon, I agree that building is going to be a larger part of our business, not going away, more important as we revolve around the sun in this spaceship we call earth.

Another thing that we would see more of in my firm especially is design, build, work--not going away, more controlled by one entity driving the construction process to completion. But for a smaller contractor who might not be involved in that as much, they would be wise to look at getting into a niche or niches more. And a niche typically is defined as a place where you could charge more for what you do and it’s harder for others to enter. There’s qualifications, there’s some sort of equipment purchases, there’s license and permits, maybe there’s a group of clients that you really have to qualify for but, again, a niche is someplace where you can make a few more dollars than, you know, just being a generalist.

In the construction industry, some contracting firms will lean back toward managing their own labor. Why? Because certainly, on the subcontracting side, that is, if you subcontract all your work, you’ll be able to make money quicker but there will be a ceiling to those profits. If you manage your own labor, you might be slower to make your first profit dollar but you’ll certainly make a lot more, double the profits if you manage your own labor over the long term.

In these changes, what I would recommend to people is really look at that planning process, that planning practice every year. And it’s not a shame to go ahead and plan for five years. You know, five years is going to be quick, to be upon us and certainly be happy that you have a five-year plan.