It is blindingly clear that the correction in the building industry has hit and is continuing to cause financial difficulty.
The share market has not rebounded to its lofty heights and the building industry is still contracting. House prices are going down and no one knows where that will end.
The bad news is that this is not all suddenly going to get better and there is a good chance that things could continue to get a bit worse for at least the next two years and even then there is not going to be a sudden improvement.
The challenge for all trade contractors now is to survive until good times come back.
The problem is that most trade contractors thought they had their businesses all sorted out and were doing well during the boom but in reality they were just surfing the wave. They could afford to not get paid a certain amount of money here and there or wait for a payment that was a bit late.
The reality is that those losses or late payments can now be the difference between a business going under or surviving. It is now going to require a whole new set of skills to survive and thrive.
Trade contractors must learn to maximise their profits on each project and not waste time and money being messed around on site.
As part of our service to our clients we run courses that will improve profitability.
Do not suffer in silence and think that the hard times are something that have to be endured.