Spring is here, and the construction industry can rejoice! The nation’s weather is getting warmer, and the cold gray days are slowly turning into warm, sunny ones. Anyone who is in the industry can’t help themselves from getting optimistic, and the spring and summer’s accompanying pleasant weather traditionally brings more construction.
This spring optimism is coupled with signs that the US economy is picking up. I read a story recently in the WallStreet Journal (or elsewhere, I can’t remember these things) discussing the economy, where an economy-guru admitted how difficult it is to predict economic upswings, but stated that we usually see economy recovery when all the signs start looking good. In other words, when it’s just good news around every corner, as opposed to bad news, the result is that things are generally improving.
It’s indeed the case recently that there are more good stories about the economy than usual, and this, coupled with the start of spring and what feels like a general economic “roll” may be reason to believe that 2012 may be pretty decent for us in the construction industry.
As business picks up, I caution you: Are you prepared for it?
The worst thing you can do is wind up staring at a mound of bad debt in your P&Ls at the end of the fiscal year. Just a small amount of bad debt can be a big problem for your business, and it would unfortunate to squander 2012’s opportunity by letting your bad debt get out of hand.
At the beginning of 2012, I stated that companies should make a new year’s resolution to protect their mechanics lien rights and stop losing money. Now that the year is underway and picking up, it’s time to really re-visit this.
Protecting your mechanics lien rights can do wonders for your company’s bottom line. Take a look at Zlien’s enterprise services to learn more, and ping me if you have any questions. I’d be happy to talk to you about how to better manage your credit, collections and mechanics lien policies.