by Merlin Hernandez

Though it may seem odd that a construction company would choose to hang out its shingle in the midst of lingering recessionary pressures, market research has shown that people were making the decision to stay in their starter homes longer, rather than upgrade to a new home, and there were under tapped opportunities in major repairs, renovations, and maintenance. There has also been an identifiable trend of adding annexes to accommodate married children with young families who are facing challenging times as a result of the sluggish economy. These additions become potential rental income when the children move on and support fixed incomes after retirement.

The idea is to have the revenue stream from this sector of the construction trade cushion survival until a real housing turnaround that would see opportunities open in major construction. Small independent contractors, however, have had to be particularly aggressive in getting their message out. Though there is an increase in renovations and maintenance contracts, a reversal of the decline in large infrastructural construction is not yet evident. This means that large companies are reaching into areas that were traditionally the domain of small contractors. But the big players have higher overheads, and tend to have higher bids. As a result there is an increasing reliance on small contractors for small projects as a cost saving strategy. Contraction in the industry has proved to be somewhat advantageous to small contractors.