The Sky is Falling

It seems that everywhere we turn we hear news about how bad the economy is doing. Gas prices are at record levels, foreclosures are soaring, and the financial markets are in turmoil. Depending on who you listen to, we are either in a recession or on the brink of one. The problem is, the latter is simply not true.

A recession is defined as 2 consecutive quarters of negative growth. The fact is, the economy is still growing, albeit at a slower rate. But why should the pundits let the facts get in the way—they have an agenda to push.

The state of the economy is a big concern for many painting contractors. New construction is slowing, and many contractors are turning to repaints. This puts additional pressure on those contractors in the repaint market. With greater frequency I am being asked what a contractor should do to survive this recession.

The first thing to do is to get a firm grip on reality, which is always sage advice. We are not in a recession. We may be heading towards one, but we aren’t there yet. So don’t panic. Take a deep breath and step away from the television set.

The second thing to do is to build a strong business, that is, do the things I’ve been talking about for years. Develop a strong marketing program, learn to sell more effectively, empower your workers, etc. Of course, these things take time. So if you have concerns you better get busy—starting yesterday.

Each year I am amazed at the number of contractors who start asking how to survive the winter slow down. They act surprised that winter has arrived, though even a casual glance at a calendar would have warned them. Mired in myopia, they plod along, ignoring the inevitable. Sadly, even birds and squirrels do a better job of preparing for the winter than many painting contractors.

Such contractors are in a constant reactive mode. Rather than build a strong business and be proactive, they respond to events as they occur. They constantly shift direction, zig zagging their way to the precipice. And when they reach the edge they start shouting for help.

I suppose that there will always be such contractors. I imagine that there will always be those who are happy that they have a job for today and give little thought to what happens next. For them, sooner or later, the sky really will be falling.

© BEP Enterprises Incorporated 2008