Identifying the right equipment at the right price is always a big decision for contractors and in uncertain economic times making the right choices is even more stressful. On the otherhand, who wants to be unprepared as publicly funded builds abound? Finance experts offer guidance.
Wishing For A Crystal Ball
You are not alone if you are searching for clear answers to the economy and coming up empty handed. Garry Bartecki of GB Financial Services confirms, “It is still a bit nuts out there. The economic and construction ball just keeps going up and down, up and down.” Absent clarity, Bartecki offers this reality check to help builders steer forward:
- Inflation is still with us, and it looks like it will be tough to get rid of.
- Because of inflation, it looks like interest rates will keep rising and be around longer than anticipated.
- While some material costs have decreased, supply chain issues continue to drive the purchasing folks nuts.
- Electric vehicles (EV) is still at the top of the list when it comes to looking at new equipment, but there are alternatives.
Even with all the uncertainty, contractors are pushing forward, and many are directly or indirectly winning work related to publicly funded builds. For example, given the particular requirements involved in building semi-conductor manufacturing facilities, trade partners, including plumbers and electricians, are in big demand. Another sign of the busy times public dollars are creating for builders can be seen in employment trends: “the Associated General Contractors of America (AGC) recently analyzed federal employment data and found that across 45 states, construction employment levels had risen between February 2022 and February 2023.”
Competing in this environment requires a strong balance sheet. Toward that end, when making equipment decisions, Bartecki suggests: “CapEx expenditures need to be carefully considered before you sign your name to the contract.You may want to ask the rental companies you use to rent you one of these new products to see how it works before you commit to a purchase. Or, you may want to rent until the pricing comes down to more realistic prices….” Colonial Surety is here to arm you with financial intel too, via the complimentary services of The Partnership Account® for Contractors.
Ready to get a bigger slice of the action in your region? Successful owners know they can’t win more bids without great help. That’s why they come to Colonial for The Partnership Account® for Contractors. Once qualified, builders position their companies to win with:
- a surety line of credit—in writing;
- a private digital dashboard;
- a daily snapshot of single and aggregate limits
- the ability to update work on hand—and increase your aggregate.
In addition to all this, Colonial gives you power of attorney to issue your own bid bonds. With The Partnership Account® on your side, you’ll win more work then ever. Get growing today:
Good To Know
Experts point out that infrastructure, green energy and semiconductor manufacturing (CHIPS) projects are going to keep driving lots of the action for contractors. Accordingly, It’s especially wise to keep an eye on the flow of money for publicly funded builds these days: not only is funding for infrastructure manifesting in the form of projects across the country, first round applications are already underway for slices of the $39 billion in CHIPS and Science Act dollars for semiconductor manufacturing. Leaders expect a multitude of direct and indirect opportunities for builders as a result of the sweeping public vision behind CHIPS. Learn more about some of the current federally funded building initiatives here and about the CHIPS Act in particular here.
As you continue to think forward about new ways for your company to win, don’t forget: Colonial Surety is here to help with a surety line of credit and the value added business services of The Partnership Account® for Contractors. Once qualified, you will use our powers of attorney to issue your own bid bond—and you can do so right up to the last moment you need it. With Colonial, owners also have a private digital dashboard, providing a day to day snapshot of single and aggregate limits, as well as current and available bond capacity. As work in progress decreases, work on hand can be updated, increasing the aggregate. The result? Yes, you can go ahead and move that next bid ahead.
Let’s get you growing today: The Partnership Account®.
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.