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New Construction Post New Topic | Post Reply
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Posted: Nov 20, 2007 09:31 AM
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New Construction
I've been planning for about a year to purchase a foam insulation rig. Well, now I'm not so sure this is the right time to do it. From what I understand, most of the business is new construction. New construction is at a 14 year low. Is this something that you all or maybe your competition are feeling the effects of? Or is business just as steady as ever. If so, why? I know there's no time like the present and I've started business in a down cycle before. I'm just not sure about this one. Thank-you |
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Gerry Wagoner
Posted: Nov 20, 2007 10:03 PM
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Down 30% oG |
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Posted: Nov 21, 2007 12:53 AM
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oG that's not bad. That's not good but not too bad. Actually that's probably the minimum for the construction industry right now. Fortunately for you, I'm sure you have a good reputation and will be fine. An established reputation can be a valuable thing during the periods like this. I bet you take the holidays off anyway so worry about it next year, right. L |
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Posted: Nov 21, 2007 08:24 PM
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down 6% following the local residential market.. after 7 years of steady growth this is ok, and MPS is positioned well for this slight bump.... (a large portion of this is labor expenses as we increased our labor force, insurances and other labor associated expenses) ours is a specialty market and the we continue to book forward,,,and are now into the new year with the holiday slowdown....and even though the "general housing" market may be depressed..the wealthy keep building and the wealthy like my product,,as do their builders... interestingly i have seen an increase in the "lower end" "spec homes" since the crunch has hit the market,,,it seems the builders are useing spray foam to "presell" their homes if they have someone look at it in the construction process,,,they will offer the upgrade to foam insulation to the customer,,,and the informed consumer is real concerned about their energy cost now and in the future and they will pay for the upgrade with proper education and the builder will sell his home while the "same home" next door will sit there finished with the sale sign in the yard... this is hot hellin hard work that can afford you the ability to make a decent living... it takes a fair amount of capital investment to do it right if you dont have any of the support equipment from other ventures to reduce the burden (artificially reduced,, but the expense is still there and it is a tangible expense at that) this venture "moves a lot of cash" due to the cost of the raw materials,,but the margin of profit is like any other sucsessfull business (key word sucessful),,,and you have to keep a sharpened pencil to stay competitive and to keep the doors open like any other business... good luck in your venture if you choose to spray foam... 'dude :)~ |
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Thomas Kasper
Posted: Nov 21, 2007 08:43 PM
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L This is what I see. The business that are doing well at these times are the ones that have things paid for. Like farmers, or factory or foaming. Those are the business that are making money. If you start out way in the hole its going to be tough to get out. If you can pay cash for your state of the art spray rig I think you will be fine. 1/2 down you might be ok. 0 down will be tough. |
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Timothy Sonney
Posted: Nov 21, 2007 11:37 PM
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We have found with the New Construction numbers being down now in the market, everyone still lives somewhere, and if you go to Lowes, HomeDepot, etc. on any given weekend their parking lots are packed. People can't afford the new home but they opt to remodel what they have. We have found that the housing market doesn't drive our business, energy cost does. |
