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PCCA Journal|1

st

Quarter 2011

27

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cost structure and rigid operational style will find competing

in the new normal particularly challenging. Agile organiza-

tions with commitments to high levels of productivity and

support by senior management will create competitive cost

advantage.

Labor costs represent one of the largest components of

cost for contractors. Estimates of waste of labor dollars (i.e.,

recoverable lost time) are as high as 40 percent on some

projects. Dedicating resources to improving productivity in

the company will yield improved competitive pricing and

bottom-line results for these contractors. For example, Exhibit

3, taken from FMI’s 2010 Contractor Prefabrication Survey,

illustrates how prefabrication is helping contractors become

cheaper, better, faster.

Conclusion

Marketing, customer loyalty, value propositions, market

brand, and efficiency are all part of the new normal for

contractors. Competitive companies are best-value marketing

machines. Having an effective marketing strategy provides

you with the tools to proactively evaluate your market and

your customers and target the opportunities where you can

differentiate and bring value no matter what economic condi-

tions are present.

Proactive analysis of market conditions and the impact of

those conditions on the players in your market are essential

in understanding what your customers need and how you

can effectively fill those needs.

Numerous market studies have been conducted on post-

downturn economies. These studies have proven that over

the course of the downturn, companies that pursue aggres-

sive strategic marketing campaigns exploit and refine their

capabilities, successfully source and identify new opportuni-

ties, fill the unfulfilled needs of the market, and ultimately

succeed with a high degree of profitability on the other side

of the downturn. Your company can achieve this success as

well.

Cynthia Paul is a managing director at FMI Corporation. She

can be reached at (303) 398-7206 or

cpaul@fminet.com.

Ken

Roper is a principal with FMI. He can be reached at (303) 398-

7218 or

kroper@fminet.com.