Recession talk is everywhere these days. Will it happen or not? To be prepared, industry experts outlined the following eight steps those in the construction business should take to prepare for a recession:
- Build what you know, and don’t start a new (to you and your business) trade.
- Continually monitoring the financial health of the company and projects to ensure profitability, communicating regularly with customers, subcontractors and employees and keeping a focus on the firm’s specialties.
- Cash is king therefore it’s important to determine whether the firm can cut costs and whether it makes sense to attempt to negotiate larger lines of credit.
- Hold off on large expenses in order to keep cash on hand.
- Think twice before laying off workers because once the economy turns around it’s difficult to rehire talented team members .
- Keep hiring and keep a growth mindset.
- Beef up civil work meaning keep an eye out for federally funded infrastructure projects because they will continue offering employment opportunities no matter the economy situation.
- Be on the lookout for M&A deals. When economic recovery begins, there is an acceleration of mergers and acquisitions to acquire businesses and grow.
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