Retail Impact Newsletter: June 2019
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The following are key topics covered on the June issue of our Retail Impact newsletter.  To view the entire newsletter, including information about personnel announcements, our new advisory board, upcoming events, and ongoing or upcoming projects, please see the link at the bottom of this page.

 

Bob’s Corner:  Change is Inevitable

Change is inevitable, and a new era is on the horizon. Each day we must keep it in our sights and thoughtfully plan ahead to direct our course for the future. As the construction industry continues to be increasingly competitive, our willingness and ability to improve all aspects of our organization to provide an exceptional value to our clients is imperative. We have recently made great strides in strengthening our organization. From diversifying our client base, to new key hires, including the addition of David Kimberly as Vice President of Operations, and the establishment of an Advisory Board representing a diverse cross section of expertise in industries including banking/finance, architecture, construction, engineering, and recruiting, we are making significant advancements. We firmly believe these changes will bring about creative new ideas for improvements, streamlined processes, and greater resistance to withstand seasonal fluctuations. This in turn translates to increased predictability, reliability, efficiency, consistency, productivity, and cost effectiveness – all of which ultimately benefit our clients. We are confident that our pragmatic approach will cultivate even stronger relationships with our customers and business partners, and further increases our ability to provide exceptional value and quality.

 

Every action we take is designed to directly support our vision: Westwood Contractors, Inc. will be the most trusted national provider of quality construction services through a passionate commitment to our values. We look forward to our future and new opportunities with you!

 

Sincerely,

 

Bob Benda

Chief Executive Officer

 

“After a business implements a strategy, competitors will react, and the firm’s strategy will need to adapt to meet the new challenges. There is no stopping point and no final battle. The competitive cycle continues on perpetually. Produce and compete or perish.”

– Thomas Timings Holme

 

Industry News: Volatility in Construction

Tariffs. Trade wars. These are just some of the recent headlines that are impacting the cost of construction materials. According to Associated Builders and Contractors, nonresidential input prices rose 0.9% compared to March and are up 2.8% on an annual basis.1   Several sources report that the price of materials is also rising faster than inflation. And more to the point, the cost of individual materials has become highly volatile, causing many contractors to include contingencies in their bids or add allowances and escalation clauses to their contracts to help manage unpredictability in pricing. Although the increase is beginning to slow, it is certainly still higher than in previous years and overall is still on an upward trajectory.

 

While we don’t have direct control over economic policies that affect our industry, we continue to be more diligent in making improvements in aspects that we do have control over. We are constantly emphasizing the importance of maintaining top quality throughout our organization. This applies to everyone, every department, every task, every time! We are challenging our Project Managers and Superintendents to be more proactive in identifying and addressing challenges before they occur. We are aggressively recruiting experienced Project Managers and Superintendents who are 100% focused on quality and client satisfaction. We are scrutinizing every expense from estimating to project execution in order to maintain cost/price control. We are in constant communication with subcontractors, vendors, and other resources in various regions to help ensure we have the most current pricing for materials and labor. We are working harder than ever to vet out subcontractors, holding them accountable per our subcontractor agreement to ensure that expectations regarding service, quality, and schedules are met.

 

Sincerely,

 

Mike McBride

President & Chief Operating Officer

 

References

  1. Associated Builders and Contractors (2019, May 26). Construction Input Prices Continue to Rise, Says ABC. Retrieved from https://www.constructionexec.com/article/construction-input-prices-continue-to-rise-says-abc

 

To view the newsletter in its entirety, please click the following link:  Retail Impact – June 2019

 

Westwood Contractors is a commercial general contractor serving clients nationwide.  Projects include retail, healthcare, hospitality, high-end office, restaurants, and other commercial facilities.