Few other industries go through seasonal rises and falls on the same level as the construction sector. It isn't safe for contractors to send their employees out in rain, snow, hail or other unruly weather. This isn't as much of an issue in regions with temperate climates year-round, like southern California, Texas and Florida. In areas with harsh weather in the winter and early spring, construction businesses can only get most of the work done in the span of a few months.
The nature of construction business seasonality doesn't mean contractors and suppliers should shut things down when the snow starts to fall. The colder times of the year give them the perfect opportunity to prepare for the busy season. Here are some ways to keep up with the rise and fall of demand in this sector.
Summer is the busiest time of year for construction businesses, while winter becomes pretty barren. Plenty of construction business owners have side hustles with their companies to keep the money rolling in. For instance, general contractors might run classes in the winter to homeowners who want to take a DIY approach to their home upgrades.
Others use the off season to attend trade shows and network. This puts them in front of potential customers, so they can be at the top of clients' minds come busy season. It's just as important to perform back-end functions of the company as it is to be active during the hectic summer months. That's why construction off season can best be used to work on and improve marketing and behind-the-scenes work.
It's a marathon, not a sprint. Even though the most hectic time of year is when most projects are completed, it's crucial that construction business owners space out their tasks. If there's something that can be done when there's snow or hail falling, it should be worked on during this time. Business owners shouldn't save their toughest front- and back-end tasks for peak working days. Instead, they should spread administrative, hands-on and customer-facing tasks over an extended length of time.
Amidst construction business seasonality, companies run into their share of speed bumps. Business owners need to figure out how to combat the loss of labor or missed time associated with certain disruptions. At the beginning and end of the off season, construction business owners should make a list of common instances that occur during both times of year, and then draft up solutions to these problems. Being proactive to issues eliminates time spent scrambling. It also gives workers a sense of security to combat all the challenges they may face at any time of the year. Some common issues facing the construction sector include:
When construction businesses are getting through the grind of busy season, workers may feel tired, overwhelmed and burnt out. Employee burnout can cost a company in productivity and wasted wages. To keep employees in the right head space, managers should ensure their workers are getting enough breaks. Construction involves concentration and physical agility; there is little margin for error. Teams must have a proper balance of work and rest to be in top form at all times on the jobsite.
There's no telling when a client is going to make a huge request or move up a project deadline with little notice. To respond to immediate demands during busy season, construction business owners may need to secure some reserve funding. Construction business loans can supply companies with the cash they need to meet clients' demands, keeping business running as usual. Also, loans can help contractors keep up with construction business seasonality. This gives them the cash they need to hire temporary employees and purchase project materials during the busy time of year.
Whether business owners need HVAC business loans, general contractor loans, or another type of funding for the construction industry, alternative lending can be a fast and flexible business financing solution. Unlike traditional banks, many alternative lenders can provide flexible loan terms to accommodate businesses that incur seasonality in their operations.
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