Construction Contractors See Historically Low Margins

A survey of more than 70 large construction organizations in the UK titled “Review of Contracting Supply Chain” paints a grim picture of the construction market. The survey was conducted by the construction consultancy firm Davis Langdon and provides some insight into how construction contractors are coping with a down economy.

One of the key takeaways from the results of the survey is that construction companies are seeing historically low margins across the board. Some are even bidding on projects that may not net them any profit. In an attempt to sweeten the deal, some construction contractors are turning towards providing attractive financing options for developers, reworking payment schedules or targeting environmentally friendly markets with greener construction processes when bidding for jobs. The survey found that the hardest hit portions of the construction industry are mid-sized projects ($77M – $155M), closely followed by demand for mega-construction projects.

While the construction industry is currently suffering, those of us here at EonCoat are very excited about the future both for the company and for the industry. Tough economic times represent a challenge, but also an opportunity… an opportunity to innovate. If contractors are losing the game – then let’s change it!

EonCoat can produce savings for contractors on several fronts. For example, in the vast majority of cases, only one coat of EonCoat is required. This represents significant labor savings  for larger projects. In addition to the labor savings, EonCoat sets in one hour for a speedy return-to-service on capital investments that are expensive to shut down.

For those construction companies targeting green building projects EonCoat can add value and help the environment with zero-VOCs and zero-HAPs. That’s right, not low, but zero-VOCs. Since there are no VOCs there is also no traditional fresh paint odor.

If you’d like more information on the survey’s findings you can view the actual report (pdf) or visit PaintSquare to get their thoughts.