Best Industry in the United States

My 17-year-old child is going off to college. She is starting ask questions about industries and careers. She has made me think further about what construction contracting has to offer her. I have concluded it is the best career a young person could choose. You may not believe it, however the facts will show our business is unmatched. It offers participants long term tangible benefits. Many people will argue however, let me show you the many virtues our industry has. You be the judge.

?Merit Based  the construction industry rewards hard work. There is no substitute. We are all dissatisfied with the work ethic today. When we find it, we reward it. Let me give you an example  a person comes to you (male / female) doesnt speak of English well but has promised to work hard and keep their nose clean. You give them a chance and 1 year later, you are glad you did. They kept their promise. Now, what will you do? Ignore them? Cut their pay? Of course not. You will increase their wages and give them more responsibility. Construction contractors reward merit.

Additionally, the industry is also. Let me show you. What is the best advertising in the construction business? A completed project on time and on budget. This speaks volumes of a contractors savvy and diligence. Word of mouth travels fast. Excellent contractors have more opportunities for work than their lesser competitors.

?Small is Big  Construction rewards the small construction firm. That is they make a higher percentage of profit. This is a variable cost business. In other words, you do not have to have critical mass to be profitable. Net profit statistics consistently show that smaller contractors make a higher percentage of profit before tax than their larger brethren do.

?Tangible  Our industry erects monuments. Our work is visible to everyone. We can see it for decades after we complete it. Construction people show friends and relatives point out these projects. Unlike other industries, we see what we accomplish every day.

?Best Earning Years Later in Life  Statistically, this is difficult to prove. However anecdotally, a case can be made. In my travels working with clients in the United States, A contractor's profitabilty grows over the years. I have seen increases as either percentage or gross dollars or both. Construction becomes more profitable with experience.

In contrast, the best earning years of most other industries is between 35 and 50. (Professional Sports excepted). The reason for this youthful compensation is energy, the willingness to travel, to take risks and to make extraordinary things happen. Profitable construction is based on consistent and correct processes, somewhat like the manufacturing business. The more consistently a person does the correct things, the better the outcome.

In our opinion, construction contracting consists of two components  people and processes. What does an older executive have over a younger one? The knowledge and experience handling people and building projects. (They have the scare tissue to prove it!) My conclusion is a contractors best earning years tend to be in their 50s and 60s.

?No Consolidation  The construction industry is an owner  operator business. Efforts to consolidate have shown the power of the small business  you cannot beat an owner who is risking his wealth every day. Large firms are at a disadvantage. Again, small is big.

?Local  Where can a construction company be started? Anywhere! Construction expertise is needed in all fifty states. It does not need a port facility or wide open spaces to operate. You can start one where you live and that is family friendly. An important consideration these days.

?No college degree needed  Construction people who have worked in the field for several years ha of anything drives the price up. Competent people earnings have outstripped general wage increases in other industries. That is job security as well as wealth building. Ask a computer programmer or airline pilot about over supply of people and the effect on wages and opportunity.

?Non-Importable – The trend of outsourcing to other countries has grown in the last several years. Take your pick: Computer Programming, Manufacturing or Engineering. Construction is insulated from this problem. Put bluntly, you cannot dig a hole in the Orient and import it into the United States. The majority of labor must be “insitu” or at the project site.

What other industry has all these attributes. The answer is none. Although, the perception persists that our industry does not have much to offer young people. It is not true. Surveys have shown people in construction do not recommend our industry to their children. We must stop this habit. I challenge each of us to promote our industry. Let the truth be told.

matt stevens can be reached at mstevens@stevenci.com

About the Author

Management Consultant to Construction Contractors since 1994. Has over 25 years experience, Held over 300 seminars across the country. Worked with dozens of contractors throughout the nation. Spoke before over 10,000 construction owners and industry professionals