Category Archives: Industry

The first few years decides your future in the construction industry

Worldwide, construction industry shows an enormous growth potential. It is a good career option for those looking for job satisfaction and lifelong learning opportunities. It involves variations in jobs such as constructing a residential apartment/house, institutional and commercial constructions, heavy industrial construction and civil engineering such as building of bridges, dams and highways. The construction process can be summarized as comprising of design, construction, operation, maintenance, renovation and demolition. It is important to understand that construction industry is very different and complex as compared to other industries since it has a number of variables. Each project is unique with different nature of work, placed on different locations, involves different types of skilled and unskilled labours, and produce different types of products. In the modern era, the large scale projects make use of increased automation and more complex processes. Due to its extremely challenging nature of work, there is existence of hazard during every project. Thus, construction industry is regarded as a high risk work environment as compared to others.

 

Although this being the case, in last few decades construction industry has shown a speedy growth. The initial years are very important for ‘a beginner/starter’ in order to have good future. Since it directly impacts life of people, hence building strong and reliable structures becomes necessary to gain life-long confidence and trust of people. This leads to increase in number of customers and thereby generation of a brand name. However, this journey may not be easy due to number of variables.

The following are some of the important variables which need to be considered for gaining initial success in the construction industry:

  1. Good and ample financial resources.
  2. Study of the location and the climate conditions. Be aware of the potential dangers.
  3. Employing professionals with construction management degrees: they have knowledge about building a structure. They are analytical and have good problem solving abilities.
  4. Employing educated and skilled laborers with an aim to retain them permanently rather than on contract.
  5. Due to rapid evolution of technologies training needs to be imparted to the workforce (labor, professionals and management).
  6. Encouraging good partnership, leadership, and teamwork
  7. Investing in R&D activities to enable high quality construction
  8. Good planning and effective execution so that work progresses in a smooth way.
  9. Health and safety of construction workforce is important to avoid fatal injuries/deaths. This will benefit in terms of time, cost and daily operation. Hence, it is essential to set up a safety culture for good working environment.
  10. Affordability, delivery on time and few occupant related illness and injuries.
  11. Constructions should be environmentally safe, healthy and fulfilling human needs.

Among these, the construction quality and occupational safety and health are fundamental issues to be given priority. When all these variables are considered and accordingly work is planned, it will lead to 90% success in the construction activities and lead to safe and healthy constructions. This enables to win customer’s trust and will guarantee success in future of construction industry.

Making of a mighty construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Construction is a lucrative business. Although many entrepreneurs start this business as, yet it is only 10% who make it very big in terms business to become brand names. These construction companies do not achieve success overnight but they have done diligent business planning to become ‘Mighty’ in this field. Experts have observed some common traits among these super achievers as:

  1. Clear aims and objectives: They know what they want to achieve and have noted it down and hold onto that vision. They are aware of their mission, vision and values. This allows them to maximize resources of time, energy to achieve big monetary returns in future.
  2. Planning: Construction involves a lot of work and it has to be done with a responsibility. They understand the importance of planning, systems, and processes need to be place in business. They plan their work to perform it systematically and they also work according to their plans to be successful.
  3. Updated: They are aware about the market trends in construction and try to adjust themselves as per the situation. They also spend time with people who will support their ideas and from whom they can get suggestions. They participate in healthy discussions to be successful in their ventures.
  4. Well-qualified professionals: They hire excellent staff and managers for smooth and effective functioning of organization. They pay them well, train them in latest technologies and give them good work-life balance. They also hire the right type of people who will perform their work very dedication. They know that hiring of cheap labour will lead to mediocrity and work will suffer and will lead to loss in the future.
  5. Designing Effective Business Strategy: In order to win over rivals in business, they have make appropriate preparations and checklists. They always provide excellent and superior quality service. Further, they know strengths and weakness of their employees. Employees are informed about their weakness and are suggested to be improved.
  6. Defensive business strategy: The costs cover the equipment, vehicle, labor, registration or business licensing, surety bond, and insurance requires a lot of finance. They do not depend on loans abut have saved enough which ensures that this excess money will help them in difficult times.
  7. Effective sales and marketing: Just providing good services is not enough, as its awareness has to be created. Hence, they hire good sales people. In addition, they also get onto social media such as Facebook, Twitter, and sending text messages to get into business leads.
  8. Business Transactions: While performing different transactions, they are diligent and vigilant. They do not sign on any papers to avoid getting them into trouble.
  9. Customer satisfaction: Since they value their customers, they listen to them, reply to their queries and concerns about product. They try to modify or improve their services to please the customers. This increases their customer base. They value professionalism and empathy which makes them customer loyal and successful in business.

Overall while making a mighty construction business they are aware that is a multidimensional business which requires a lot of planning and detailing to ensure success.

Buy Now on eBay [ebayfeedsforwordpress feed=”” items=”2″]

Role of heavy equipment on the construction sector

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

One who is a part of the construction domain clearly understands the importance of heavy equipment in this domain as well as to his business. This is perhaps the reason why many big construction companies are procuring state of the art machines for their big projects. Since they understand that the only way to get the work done faster is through the introduction of highly advanced heavy equipment that they want to have the best in their arsenal. Heavy equipment to a construction industry is what a heart or a brain is to a human being. He just can’t survive without these important organs. In the same way, it is almost unimaginable for the construction industry to move an inch of progress without the involvement and participation of heavy equipment.

We would be speaking in brief about the utilization of some heavy equipment which is most commonly seen in any jobsite.

Excavators:-

No big construction project can be completed without the participation of excavators. In order to begin the construction, one has to excavate the earth to build solid foundations. This is only possible with the help of this machine. It usually digs the earth with the help of the boom that is attached to its axle in the front. It has a cabin to the rear where the operator sits and manages his affair. This may seem to be a very common machine but has a lot of importance in the overall industry which is why heavy equipment companies are always in the process of designing hi-tech excavators that will sell as hot cakes.

Wheel Loader:-

A wheel loader is the machine that is extensively used to ferry debris from one place to another. When it comes to ferrying debris, other heavy equipment can also be utilized. However, they all have their limitations expect a wheel loader. They can carry huge pile of dirt, rocks and other debris which in many ways is not possible for other machines to perform. They are also extensively used for mining and road construction works.

Bulldozers:-

You have a permanent structure that you want to bring down you will not find anything better than a dozer. It has the capability to bring down a very solid structure into rubbles. They can also work as an alternative for excavators as the attachment can be changed and so does the work of the dozer.

Rollers:-

Rollers also form an important part of the construction industry. It is crucial to have good roads for better connectivity and also for the prosperity of the country’s economy. It is good roads that become part of better transportation of essential commodities. The pain of a bad road can’t be understood better than the driver of a truck whose spine aches while he drives every mile on it. The rollers play a significant role to smooth the road and make driving better.

There are many more machines that plays an instrumental role when it comes to making the future of the construction sector.

Buy Now on Ebay [ebayfeedsforwordpress feed=”http://rest.ebay.com/epn/v1/find/item.rss?keyword=%28caterpillar%2Cheavy+equipment%2Cconstruction+equipment%29&categoryId1=177641&categoryId2=41489&sortOrder=BestMatch&programid=1&campaignid=5337988552&toolid=10039&listingType1=All&lgeo=1&feedType=rss” items=”5″]

Related articles across the web

Water crisis can have serious impact on the construction industry

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

This summer has dried up many lakes and water bodies in many parts of the country. Not only US but many countries all around the world are facing severe water shortage and are finding it difficult to sustain. Agriculture sector that depends primarily on rain water is not doing well because of acute deficiency and most likely the prices of agricultural products will shoot up considerably in the coming days. So is it only affecting the agricultural sector in a major way or are there any other industry as well that is being hit hard by this issue. Water which is such an important component in our day to day lives, scarcity of it can affect many industries and some of the most profitable industries can take a backseat as far as their businesses are concerned. One such industry is the construction industry can is currently facing the brunt of water shortage.

Water is required in immense quantity in a construction site. Not just for keeping the employees hydrated but also for other purposes like mixing cement with sand, spraying water on the ground to restrict the flow of dust on the site etc. It is also required to clean heavy equipment and lot of water is required for that purpose. Fluctuation in the price of fuel has a big impact on this industry but shortage of water can have ever lasting impact on many big construction companies. You need fuel to run heavy equipment but you need water to meet every small need of yours which can’t be compensated by any other component. Countries in the gulf are paying a heavy price to port water from their sources to the construction site which is why the prices of the final product is relatively higher.

A big construction company has to spend a lot on aqua and if it is in crisis then they may even experience shutting down of projects. His workforce will need water to drink and if he can’t even provide that basic necessity he will soon find people leaving his company. But the fact is drinking water has never been such a big issue in this country. The construction labors are able to get drinking water while they are at the jobsite. The problem is with water that is needed for construction purpose. There they might feel the pinch and it will definitely pain a lot.

Many parts of Asia and South America, the construction sector has already taken a backseat due to scarcity of water. The government in some countries has curtailed the use of water for construction purposes which had a big impact on the overall sector. Though they understand that the crisis is not going to be forever and till the time it does not rain, the problem might remain. However, once it starts raining, things might come back to normal. But the important part is to sustain till the time it is not monsoon.

Buy Now on eBay [ebayfeedsforwordpress feed=”” items=”2″]

Looking out for funds – Hunt for big investors

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

If you venture out to do something big you also have to be ready with enough capital to fulfill the monetary needs of the project and in case you do not have enough money with you then the next thing will be to look out for investors who can help you get the money till you are done with the project. Any type of industry requires funding for the inception as well as the completion of the project and it has been generally observed that people who have the idea and the dedication to complete an unique task does not have sufficient money to fund the technological requirements and hence they have to depend upon people who are ready to fund them money and in return they share huge profits or have a bigger stake in the project. So there are investors for everything that you can think of and also for things that you are beyond your imagination but can be brought into existence by some intelligent brains.

Construction companies per say are always in hunt of investors. Be it constructing a hotel or building a bridge or a residential apartment they need investors who are ready to fund their project. In some countries, construction companies do not enter into a project without the consent of their investors. They do not bother to think about how beneficial it will be for the growth of the company but are more concerned about how much profit will the project be able to generate for the investors and accordingly they give their nod once they get a kind of acceptance from their investors. They may not be a normal practice but is increasingly followed by many construction companies.

The big question is how to hunt down a big investor and why will he invest his money into your project. Well the answer is simple. They only invest their money where they see scope of getting high returns in a comparatively shorter time span. So when you get hold of someone whom you know to be an investor and has been funding projects, you got to be pretty sure about your project and what return it will generate for him. Not all investor wants only money out of a project. There are few who are really interested in the type of project that they will be investing their money. So if it is something that goes in sync with conservation of nature and will generate money few years down the line, getting investors for such project is not like having a dream come true. However, finding such men is a bit difficult.

But if you are there to construct a hotel or a bar and you need investments, you will find men willing to fund you. The only clause is the project should be a big one and they should see substantial amount of profit in it. Giving an ad on a website that helps construction companies to find investors will be the right thing to do. You can also check with guys in your business circle and may come up with someone who will be ready to fund your work.

Buy Now On eBay [ebayfeedsforwordpress feed=”” items=”3″]

 

Starting a construction company in another country

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Starting a business in your home country may not be a bigger problem as compared to doing it in an alien country. You know the rules and regulations that is required to follow if you want to start a business in your country but the rules changes when you move out of your country to some foreign location and think about starting your business there. Though it may sound difficult but there are many companies who have managed to successfully set their base in a foreign land and are doing really well out there. Starting a construction company may sound to be a difficult job but as a matter of fact many countries want foreign enterprises to come to their nation and be a part of their success journey. In return you can get to use their resources and also make good money out of the deal.

Before you think of setting up your venture in some foreign land, there are few things that you should know and implement it in your strategy.

Importance given to the construction domain:-

It is important to know the government’s determination and thoughts about the construction industry as a whole. Governments in some countries may focus on agriculture more than anything else. So it will be futile to set up a construction business out there. So try to know the government’s agenda for the nation before you try to set up anything out there. Some countries are rich in minerals so setting up a mining company makes lot of sense. For that you need to have a bit of experience in the mining industry or you know someone on whom you can vouch and can make inroads in that country. Many African countries are rich in minerals and they can prove to be a great destination for mining companies. They can see a lot of potential out there. As far as construction is concerned, there are many Gulf nations where you can set your business and can expect you go a long way.

Employment opportunities to their people:-

Getting permission may not be difficult if you can manage to convince the government that by allowing you to establish the construction business on their land, it will create lot of job opportunities to its people. It will also lead to the usher of other sectors. For instance, you can construct a pharmaceutical company or a commercial complex which will further employ more people. It is a kind of win-win situation for both of you. The government will for sure take this point and you will get the sanction to start up your company out there. You should also consider the taxation laws of the country and check if you can get any sort of concessions on it.

Legal advice is important:-

Every country has its own legal hassles when it comes to setting up a business. So you need to hunt down a competent attorney who can guide you through the different laws and advice you on how to avoid hiccups that may come your way.

Buy Now on eBay [ebayfeedsforwordpress feed=”” items=”2″]

Administrative and finance are two crucial departments of a construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Every company has few very crucial departments without which the functioning of the company is unthinkable. Like ways, the two most important departments of a construction company can unarguably be the administrative and the finance department. It is perhaps after the consultation from the head of these 2 departments that the company can take any major decisions. If either of these departments does not give their nod, there are high chances of non-happening of an activity. If heavy equipment and construction laborers are two vital parts of a construction company on the field then the admin and the finance departments are another two vital departments off the field.

A person who wants to establish his own construction company needs to understand the workings of these two departments thoroughly and once he/she is confident that he/she can take vital decisions after understanding the functioning of both the departments, he/she should go ahead. Rest of the important parts like knowing about heavy equipment, what machine is needed for which purpose can be advised by other professionals but there is no expert per say when it comes to the finance and the admin departments. No one can guide you accurately when it comes to the finance section as they do not know your business plan and the capital you have for investment.

If only someone knows about your business plans, they will be in a position to guide you. This work is ideally done by the Head of Department of the finance section since he/she knows about most of the projects the company is working on. However, if you are the owner of small sized or medium sized construction company then you probably not be able to afford an expert and qualified person who would be heading the finance department. It is perhaps you who have to take the lead and take all the important decisions. You will definitely be having few men working under you but they can only help you with data, the rest will be your call. Therefore it is necessary to understand how both these departments work so that you have a fair idea as to where the company is heading.

The work of the admin team is primarily restricted to taking care of the employees by providing them with all the necessary means that will enable them to work in a safe environment. In case, if the employee has any problem, the first point of contact he will approach is the admin team who in turn will check how to get that resolved.

If there is any monetary involvement in sorting out the problem then they might then get in touch with the finance team and check what can be done. If it pertains to any other issue that doesn’t seek the requirement of the finance team, then the process may become a lot simpler. However, it has been witnessed in most of the cases the admin team has to work in sync with the finance team and vice-versa making them the 2 most important pillar of the construction company.

Buy Now on eBay [ebayfeedsforwordpress feed=”” items=”3″]

Challenges are part of the construction industry. Learn to tackle them

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

When you think of starting a business you should also be prepared to take on new challenges that will come along with it. Challenges are part of anything that you do for the first time. Even driving a car is a challenge for you when you are learning it. You got to learn about the gears and brakes and also need to have good control over all its functions. This can be a real challenge for you if you are first timer but once you are in practice it becomes a cake walk. Similarly starting a new business can throw a lot of challenges but it is up to you how to take them. If you take them positively and see them as a learning curve, you will learn a lot from it and will also incorporate it in your business but if you feel irritated or scared then it will take you down and there may be a time when you have to complete wind up your business.

Construction industry is in many terms a highly rewarding industry but at the same time it will equally make your life difficult. Life becomes more difficult during the beginning. You have to foresee many things that you have never tried before and also have to take your chances. You got to be a bit brave in your effort and while you are dealing with different situations. First and foremost you will have difficulties in understanding the construction business as a whole. You have to learn how the business works and that will take good deal of time.

It is important that you do not run out of patience because if you do then you have lost it forever. You got to remain as calm as you can and analyze how things turn out. You may find people who are close to you leaving you for better opportunities and you can’t do anything to hold them. Though you need them more than they do, you are unable to retain them by offering more money. This is one of the challenges that you have to encounter and got to successfully win. Attrition has been a big problem for many construction companies. So you are not the only one who will experience this. You should be ready for it and keep a back-up ready.

Marketing your company can be another challenge that you need to tackle especially when you are new to the business. Since people do not know you, you will find hard to get work. So be ready to see no work for few days and do not get frustrated. That will lead you nowhere. Form a marketing strategy where you deploy a team who will be actively marketing your company and the business activities you can perform. Take suggestions from the marketing team and provide them with all the necessary help they require. Start it from taking up small work and once you see money rolling in you can eye for bigger projects.

Experienced men are most preferred in the construction industry

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

We belong to whatever profession but it has been always witnessed that our market value increases as and when we grow older in the system doing the same job and learning more from it. For instance, a medical student after completing his studies practices under the guidance of senior doctors. At that point in time, he makes less money as he is in the learning phase but after once he completes few years in that profession and enhances his skills, the demand for his service increases and thereby his fee is also augmented manifold. What we get to understand from the instance is that a person who gets to experience different aspect of the business and learns things from them is the one who gets more opportunities in life and simultaneously also has more chance of earning good sum of money.

Medical profession is very different from the construction business and one who wants to make decent money after having completed their civil engineering or have taken up a course of becoming an operator can make their way in this sphere. It is evident that they will not simply start generating chunk of money from the day 1 but as and when they gets attuned to the work and understand it well, their marker price automatically rises. They CV speaks a lot for them and then moving from a low paid job to a higher paid one will no longer be a difficult task.

Experienced men have dealt with different situations:-

People who have dealt with situations in the past do know how to deal with them whenever they arise again in the future. The construction industry is full of situations where one gets to learn something or the other on a daily basis. They come across numerous situations and learn how to deal with them in an effective manner. A newbie joining this industry can expect going to new heights in his career if he manages to stick around in this sector. Ideally, it has been seen that people tend to move off to some other line of business as they are unable to tackle the pressure but the one who can take it up has no limit of growth as he keeps on learning things as and when situations arises and that helps him to grow as an individual and also increases his value in the sector.

They can be good mentors for the new joiners:-

A new kid joining this industry is often tensed as he is not aware what he may have to deal with and therefore he will feel relaxed if an experienced person can come forward and guide him through. There may be numerous obstacles that may come in one’s life but a mentor is the one who will equip the new joiners with his expert advices and make sure that they do not make the same mistake which he had made when he was one like them.

BUY NOW ON eBAY[ebayfeedsforwordpress feed=”” items=”2″]

“Make hay while the sun shines” goes well with the construction industry

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Not every industry has its golden era forever. There are times when they see ups and also times when they also have to see the downs. You name any industry and you will see people related to it cheering during the good times and struggling when things are not so good. So as a business owner it is crucial that you make the most when things are positive in your sector and stay low when things are not doing well. This may not be the only mantra but is certainly an important one when it comes to finding success in any industry. We have often heard the saying “Make hay while the sun shines”. It makes a lot of sense in an industry that is dynamic and has lot of competitors all wanting to make the most. Construction industry is one such sector where people are vying for almost anything and everything.

Construction business owners know one thing for sure that it is pointless to struggle to get business when the overall industry is not performing well. For some it may sound weird when they get to hear that the construction industry is not doing well. They may have the belief that it is most rewarding industry in today’s time and for some reason can never see any downslide. Well as a matter of fact, every industry has a phase when it has to see the bottom and so it is with the construction sector as well.

Companies should have patience:-

Many new companies wind up their business when they do not see work coming. They probably get into the sector when it is trending downwards and since they do not have work in hand, they can’t take care of the operating costs and are compelled to give it up. Well for such enterprises, the only advice would be drastically cut down on the operational costs even if it means running the business from your house. If you have to do that, you should do so. Having an office and paying rent for it can become too strenuous for you to handle especially when things are bad. Therefore working from home becomes the most viable option and also cut down on the workforce. Stick to any small project that you get and learn to work on heavy equipments so that you can operate the machine on your own. This saves the cost of employing an operator.

Be aggressive when the sector is doing well:-

As understood by many, construction sector rewards you well when it is at its peak. You can take the risk and work aggressively to make the most. While you making profits, you got to remember to save resources for times when the business may take a downturn and you have to keep it afloat using those resources. This is why try and be aggressive when others are minting because you also will make lot of money then.