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Well .. another year just about over, and its been quite a tough one for us in and around the UK, since the recession started in 2008. In May of that year it was like someone had just turned off the lights, and many construcion sites closed for no good reason, and a multitude of kit got off hired, as the media and the banks all panicked about the future .. well several years later, its still not clear where the bottom is. Fortunately I see some specialist contracters and small landscapers actually doing rather well, so its not all doom and gloom, but for the mainstream construction and plant companies, its still tough.
Many have taken the opportunity to relieve them selves of debt, to improve the fiscal position and strengthen their capitol base, abit like the banks, but for plant companies this is easier said than done, due to them often having to enter into the likes of HP agreements which are often signed over 2,3 and four year deals, for buying their kit. Slowly many are making progress though, and , as long as they can avoid the pitfalls of bigger construction companies going out of business on them, they will survive leaner, and fitter. But sadly this has been one of the biggest problems in our industry, big contractors crushing small sub contractors until there is nothing left, and in the end the subbies just cannot run businesses anymore, being dealt with in this way, with constant claw backs from main contractors and failed retention payments, it just goes on and on.
On the plant side, giving out far too much credit has been the fault here, often caused by bigger contractors holding out for ever longer credit terms, hoping to stave off their own demise .. until finally the contractor has gone out of business, leaving the Plant company with nothing. In the year 2008 we lost the same amount of money due to failed businesses, as I had done in the previous 20 years added together ... it was brutal.
Banks are still not playing ball either putting up interest rates constantly to small businesses when the base rate hasnt changed in nearly 4 years, and adding ever heavier charges and fees, and making lending more challenging, by demanding greater securities for example, if in fact they will lend at all.
But there are things we can do to strengthen our position, stopping giving out un worthy credit where possible is one. The main contractors will have no one to do their work if there is some unity from the many subbies, who refuse to be treated so mercilessly.
Plant companies .. traditionally at the back of the queue should reduce there vast capitol overheads where they can so they are not forced to put plant out the door for nothing .. if the client wont pay in time.. take the kit off him .. because if you own it .. it will cost you nothing to sit it in the yard for a few days until a good paying client does come along .. trust me .. you will save by this approach because you will reduce the likeliehood of bad debt. There is a natural unwillingness to appear tough sometimes when you are trying to offer a service, but its your survival you should be concerned with foremost ! Dont let the mis management of other businesses pull you down with them.
I could fill a lot of lines on the subject, as I'm sure you will all know, but the spirit of this message is to maintian a sence of good hope, because there are small seedlings around us of success, and to say to you all.. well weve made it this far ? so it can only get better ! I certainly wish I was in a different marketplace right now .. but weve had a fair crack of the whip over a couple of decades up until 2008 and I would suggest that using every tool in the box to work our way out is going to be neccessary
So to that end .. even here .. this forum.. is one of those tools... so use it guys for all the help we can give to each other as a community. It has the potential to be a great resource, as its beginning to show, and I thank you all for your support in helping it to do that so far, and I look forward to maintaining it, in this regard for all our members.
Have a great Christmas everyone .. and I wish you all a prosperous 2013 and beyond.gif "thumbs up")
Many have taken the opportunity to relieve them selves of debt, to improve the fiscal position and strengthen their capitol base, abit like the banks, but for plant companies this is easier said than done, due to them often having to enter into the likes of HP agreements which are often signed over 2,3 and four year deals, for buying their kit. Slowly many are making progress though, and , as long as they can avoid the pitfalls of bigger construction companies going out of business on them, they will survive leaner, and fitter. But sadly this has been one of the biggest problems in our industry, big contractors crushing small sub contractors until there is nothing left, and in the end the subbies just cannot run businesses anymore, being dealt with in this way, with constant claw backs from main contractors and failed retention payments, it just goes on and on.
On the plant side, giving out far too much credit has been the fault here, often caused by bigger contractors holding out for ever longer credit terms, hoping to stave off their own demise .. until finally the contractor has gone out of business, leaving the Plant company with nothing. In the year 2008 we lost the same amount of money due to failed businesses, as I had done in the previous 20 years added together ... it was brutal.
Banks are still not playing ball either putting up interest rates constantly to small businesses when the base rate hasnt changed in nearly 4 years, and adding ever heavier charges and fees, and making lending more challenging, by demanding greater securities for example, if in fact they will lend at all.
But there are things we can do to strengthen our position, stopping giving out un worthy credit where possible is one. The main contractors will have no one to do their work if there is some unity from the many subbies, who refuse to be treated so mercilessly.
Plant companies .. traditionally at the back of the queue should reduce there vast capitol overheads where they can so they are not forced to put plant out the door for nothing .. if the client wont pay in time.. take the kit off him .. because if you own it .. it will cost you nothing to sit it in the yard for a few days until a good paying client does come along .. trust me .. you will save by this approach because you will reduce the likeliehood of bad debt. There is a natural unwillingness to appear tough sometimes when you are trying to offer a service, but its your survival you should be concerned with foremost ! Dont let the mis management of other businesses pull you down with them.
I could fill a lot of lines on the subject, as I'm sure you will all know, but the spirit of this message is to maintian a sence of good hope, because there are small seedlings around us of success, and to say to you all.. well weve made it this far ? so it can only get better ! I certainly wish I was in a different marketplace right now .. but weve had a fair crack of the whip over a couple of decades up until 2008 and I would suggest that using every tool in the box to work our way out is going to be neccessary
So to that end .. even here .. this forum.. is one of those tools... so use it guys for all the help we can give to each other as a community. It has the potential to be a great resource, as its beginning to show, and I thank you all for your support in helping it to do that so far, and I look forward to maintaining it, in this regard for all our members.
Have a great Christmas everyone .. and I wish you all a prosperous 2013 and beyond
.gif "thumbs up")
all the best for the new year guys
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