Contractors prepare to face COVID-19 challenges for the long haul
By Joe Bousquin huck Goodrich is worried about his 2021 cash flow .
As CEO of Indianapolisbased national subcontractor Gaylor Electric , he and his team have made it through the onset of the novel coronavirus pandemic , and have actually seen growth . For the year , he ’ s expecting to increase his revenues by about $ 18 million , or 7 %, compared to 2019 , even though his profit margins have been squeezed by the extra costs associated with COVID-19 mitigation and keeping his 1,200 electricians safe on the job .
But it ’ s what lies ahead in 2021 that makes him concerned .
“ The definition of construction is that cash is king ,” Goodrich said . “ And right now , cash flow doesn ’ t look that great in 2021 .”
Instead of the growth he ’ s seen in 2020 , his projections are showing a 10 % to 15 % revenue hit next year .
“ That ’ s a big number ,” Goodrich said . “ We ’ re optimistic , but overall we ’ re seeing a shortage of opportunities in September and October , with November and December usually being slower anyway .”
Goodrich ’ s focus on 2021 cash flow is an example of how construction firms are extending their outlooks for grappling with COVID-19 , nearly six months after the pandemic began . With Labor Day in the rearview mirror , the hopeful projections that the outbreak would be over by the end of summer never materialized . In fact , some major employers have announced they ’ ll keep offices closed until mid-2021 or beyond , signaling an even lengthier timeline until business as usual returns .
Given this new reality , here ’ s how construction companies are reassessing the remainder of 2020 and looking ahead to 2021 as they settle in to deal with COVID-19 for the long haul .
Bringing new business in
Peggy Marker , president of Fort Lauderdale , Florida-based Marker Construction , said her long-term focus for COVID-19 is new business development and maintaining relationships with current clients .
“ My biggest concern is finding a way to generate and develop relationships from afar ,” said Marker , who noted that before the pandemic , she attended two to three inperson networking events a week .
With those events now canceled , building rapport with potenial new clients has become more challenging . “ No matter
14 DITCHMEN • SEPTEMBER 2020