Chapter Corner

Steve Coughran

Getting Strategy Right: What Contractors Do Wrong and How to Fix it

Amidst ever-shrinking profits, increasing labor shortages, and decreasing productivity in the construction
industry, companies are trying to solve new problems with old strategies. Industry profitability for most
specialty contractors, including electrical companies, has consistently experienced 5-year compound annual growth rate (CAGR) net income declines of 6.1 percent. A labor gap in the United States of 1.6 million workers, an aging workforce where more than half of its workers are over 45 years old, and a lack of interest for entrance from younger generations (43% said they would not enter construction irrespective of compensation) has increased costs and left companies unable to satisfy building demand.