As of the first quarter of 2016, the Bureau of Labor Statistics (BLS) reports that there are over 768,000 construction companies currently operating in the private industry in America. There are also countless more that have come and gone. According to Statistic Brain, only 47% of construction startup businesses are still operating after year 4. Personally, I've seen many people break off from a construction company and create their own business; some are still in operation, others have failed.
So what sets the successful businesses apart from the others? Our friends at GenieBelt have put together a list of 10 reasons why construction companies go out of business. As the infographic shows, it's extremely important to remember that running a profitable construction company isn't only about having the ability building quality projects, it also takes a strong understanding of finance and marketing.
The following infographic is provided by GenieBelt, an easy-to-use construction project management software that empowers communication on site. GenieBelt allows you to regain control of your project and connect fast and easy with all the different construction agents. For more information, you can visit their website at https://geniebelt.com/. Infographic Design by Jenny Yi Lou (email@example.com).
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New Mexico, our nation's 47th state, lands at #32 on our continued state-by-state countdown. After adjusting for the state's lower cost of living (5.9% lower than national average), New Mexico jumped roughly 8 spots on the list. There were 3 construction professions ranked in the top 10 versus all other states, including solar panel installers, reinforcing iron and rebar workers, and welders.
Last Monday, a 13-story building in Miami Beach was in the process of being manually demolished when the building suddenly came crashing down, some of it horizontally, and critically injured 1 of the demolition contractor’s project managers. There have been some developments in the story that we would like to update you on.
I promised myself that I wasn't going to mention potatoes, so I won't. That doesn't count. Coming in at #33 in our countdown is the state of Idaho, often referred to as the "Gem State." Boosted by their relatively low cost of living at 8.7% below the national average, Idaho jumped 11 spots after adjustment.
There are a ton of songs about the city of New York, but that unfortunately doesn't help the state in our countdown. Despite having the 4th highest cost of living, at 31.6% higher than the national average (according to MERIC), New York did still manage to land a few construction professions in the top 10, like crane operators, roofers, and concrete finishers, even after adjusting the numbers.
For the third year in a row, Seattle, Washington has the most construction cranes in their city’s skyline, a clear sign that the west coast city is still in a major growth period. Around Christmas 2016, the first year Seattle lead the most cranes race, the city put on an awesome lights show and shared an impressive video of the cranes lighting up the skyline, which you can watch here.
If not for having the lowest cost of living in the country, according to the MERIC data, MIssissippi would be in contention for the lowest ranking on our list. However, having a 14.5% lower than the national average boosted the state up 15 spots to #35 after adjustment.
OSHA's new crystalline silica dust exposure regulations officially went into effect on September 23, 2017. Over the past 10 months, there has been plenty of confusion about the lung disease causing material. In the first 6 months after the effective date, OSHA's inspectors yielded 116 violations across the country.
Vermont is one of the few states in the Northeast that doesn't have a ridiculously high cost of living, according to MERIC, at only 2.9% higher than the national average. That helped Vermont rank higher than many others in the Northeast in this list, but it's lower than average adjusted hourly rates for the construction industry still kept it on the bottom half of the list overall.
Since the dawn of green buildings, these projects have always been synonymous with LEED certification. The process of obtaining that LEED certification has not always been an easy one for contractors; there is a ton of paperwork and documentation that needs to take place in order to prove all LEED credits have been rightfully earned. A new construction standard, called BREEAM, is hoping to disrupt the United States’ green building certification world with its impending New Construction Standard Release in 2019.