# What economic recovery, where is it???



## burntside bob (Sep 27, 2010)

I have been talking to local contractors, the only jobs they have are small one two day projects. One an established building contractor said he has only one employee now, and has not built a house since 2006. He used to build several a year. All the contractors I spoke with, while I was calling them to find out if they needed dirt work quotation on any work they were bidding said work is very slow, only small projects no houses other buildings to bid, but some one did build a garage - but it was for a relative. 
Many said they are just holding on.
Said prices are in the "what are they thinking of" area, former employees now in business for themself bidding/quoting rock bottom prices, result is there's no money in it.
I remember years ago of a former contractor now in insurance as a field safety representative; telling be stories of the 1980 recession of {building contractors (really?)} bidding job that amounted to only the cost of materials, no labor. Meaning they did not know what their job costs were, its happening again.
I assume its the same all over rural Minnesota.
So whats happening in other rural areas of the country? Any economic recovery in dirt work construction????
The large metro areas kind of are economic engines of there own; meaning they have large economy to feed off of, that's very different from rural areas with small populations and limited economic activity, with exception of the Willison oil basin, my 2 cents.
What are your thoughts?
Well wonder of wonders, I have a one day project to get to work on, read your reply's tonight when I get back.

I do not care if your Demo donkey or Rep elephant; after 3 1/2 years and still in a recession may be we need a change in direction, do not reply to this last sentence.


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## Leo G (May 12, 2005)

Apparently you haven't been listening to the press...everything is fine.


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## oktex56 (Dec 30, 2011)

Commercial market is the worst I have seen. GC's asking for 3rd and 4th look before awarding, etc.

People I talk to have just been holding on as well here.


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## kauf12bgr8 (Dec 13, 2011)

We are swamped with work here in Ohio. Gas lease money is taking its effect.


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## hdavis (Feb 14, 2012)

Upturns and downturns always have regional and industry sector variation, but for the country as a whole, look here:

http://www.businesscycle.com/

Their good stuff isn't free, except for the interviews and articles, but that's plenty. Last winter they called the next recession to start in a few months from now.


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## dayexco (Mar 4, 2006)

one thing that i've discovered in 32 years....is my "bread and butter" customers...the ones who say....this is what i need done, get it done, and send me a bill.....aren't spending any money....maybe it's just here in my little world that's happening. 300 miles NW of me, they can't make money fast enough. unless you're stimulated by a raging local market, "gas/oil"....right now, from what i'm experiencing and reading, it's rather slim pickings. please, somebody...prove my ass wrong.


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## dayexco (Mar 4, 2006)

and how this can be a local issue...you drive 100 miles south of me...where "cando" lives...it's pretty much boom times. i'm too old and freakin lazy to move there/drive daily to pick up the work.


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## Upchuck (Apr 7, 2009)

It's pretty crappy in our area. We've got some work right now but I'm not sure about the rest of the year if the phone doesn't start ringing. 

There is only one new home being built in our town right now. Surrounding area is pretty much the same. We did a few loam jobs in the spring & lately septic repair work has picked up. People don't have much of a choice when septic isn't working.

We had a big excavating job 2 weeks ago. A 14' x 24' garage.:whistling


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## VAviaCo (Sep 3, 2008)

People call me now I talk about October, earliest.


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## rino1494 (Jan 31, 2006)

We are in a better position than last year. I just picked up a $150k commercial job, including, sanitary, storm, footers, curbs, sidewalks and paving. I sub out the paving. I have a demolition for the local power company and I am currently doing a Eljen GSF septic system. Both jobs have big profit margins. As it stands, I'll be busy through the end of August.

Still waiting on final township approvals on a new residential development that I have. Developer wanted to break ground in April and the township is jerking him around about widening out the existing roads. That job is $400k.

As far as new houses are concerned. We have only done 3 so far. One is a spec, one for the builders own house and the other is for a double wide that is being moved.

Day is right, the customers that are the best payers are the ones holding on. We have about 3 customers that build high end homes and they pay fast. None of them have built anything in the last 3 yrs.


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## Builder Butch (Jan 30, 2012)

Memphis market is also tough. I use to build 30 to 50 upper end houses a year since 1987. I have not built a home since 2006. everyone when broke! Subs, builders and even suppliers. The survivors have started to build a few lately but it is mostly where they bought lots at 30 cents on the dollar. I pulled my tools out of retirement and started doing whatever I could find, painting, fences, windows, doors, roofing, sheetrock you name it. Most weeks I can make basic bill money but everyone is feed and bank has not come got anything yet. So I feel blessed. 

It was the perfect storm that no one could have predicted. The market will come back slowly, but the landscape has changed forever and I figure I will be working with my tools for a while longer if not forever. I've changed my standard of living and my expectations and just stay humble and back to the basics. I love this business and with a Mechanical Engineering degree some days I ask myself what If I'd persured my degree options, but its tough in that market as well. Hang tough and I wish everyone in our industry luck!


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## cleveman (Dec 28, 2007)

All is well here.


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## rino1494 (Jan 31, 2006)

Builder Butch said:


> Memphis market is also tough. I use to build 30 to 50 upper end houses a year since 1987. I have not built a home since 2006. everyone when broke! Subs, builders and even suppliers. The survivors have started to build a few lately but it is mostly where they bought lots at 30 cents on the dollar. I pulled my tools out of retirement and started doing whatever I could find, painting, fences, windows, doors, roofing, sheetrock you name it. Most weeks I can make basic bill money but everyone is feed and bank has not come got anything yet. So I feel blessed.
> 
> It was the perfect storm that no one could have predicted. The market will come back slowly, but the landscape has changed forever and I figure I will be working with my tools for a while longer if not forever. I've changed my standard of living and my expectations and just stay humble and back to the basics. I love this business and with a Mechanical Engineering degree some days I ask myself what If I'd persured my degree options, but its tough in that market as well. Hang tough and I wish everyone in our industry luck!



You repeat the words of every builder I know. All of them are doing things that they haven't done in the past to survive. That includes changing their lifestyle.


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## Builder Butch (Jan 30, 2012)

Funny thing is most of the builders I know either will not work with thier tools or can't. I never understood how someone could get to the top of thier game and not know how to do it without a telephone?


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## ohiohomedoctor (Dec 26, 2010)

kauf12bgr8 said:


> We are swamped with work here in Ohio. Gas lease money is taking its effect.


Stop telling everyone!


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## Jaws (Dec 20, 2010)

Builder Butch said:


> Funny thing is most of the builders I know either will not work with thier tools or can't. I never understood how someone could get to the top of thier game and not know how to do it without a telephone?


Yep.

First sign of a down turn in work my bags come back out. :thumbsup: 2010 I was hands on most of the time. Either way, as long as the bills get paid. When I'm busy don't have much time for trade work.



Most builders are not tradesman, to address your point. They are organizers, planners, salesman. Good ones have proficient job knowledge, and understand how houses are put together.

It took a long time for me to realize that you don't have to actually know how to frame a roof your self to know how a roof is framed.

Of course, in a down turn it is nice to have tools and know how to do good work:thumbsup:


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## Jaws (Dec 20, 2010)

Builder Butch said:


> Memphis market is also tough. I use to build 30 to 50 upper end houses a year since 1987. I have not built a home since 2006. everyone when broke! Subs, builders and even suppliers. The survivors have started to build a few lately but it is mostly where they bought lots at 30 cents on the dollar. I pulled my tools out of retirement and started doing whatever I could find, painting, fences, windows, doors, roofing, sheetrock you name it. Most weeks I can make basic bill money but everyone is feed and bank has not come got anything yet. So I feel blessed.
> 
> It was the perfect storm that no one could have predicted. The market will come back slowly, but the landscape has changed forever and I figure I will be working with my tools for a while longer if not forever. I've changed my standard of living and my expectations and just stay humble and back to the basics. I love this business and with a Mechanical Engineering degree some days I ask myself what If I'd persured my degree options, but its tough in that market as well. Hang tough and I wish everyone in our industry luck!


 Growing up, almost everyone I knew in construction , atleast those who were good, made a ton, and spent a ton. Big trucks, big houses, big boats. If it hadn't been for this down turn I might of done the same, now matter what I think I will remain humble and frugal. 

Not to get in your business, but since you put it out there, how do you not put aside some serious bank building hundreds of homes?


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## Jaws (Dec 20, 2010)

Since It bears on this conversation, I just had coffee with a guy who is my age and who I knew when we were kids. Both of our dads are also builders, They both did subcontract work one of the areas top builders but when we were kids. We both worked fo our dads during the summer , that is how we know 1 another.

He was telling me this morning they are really slow. I made a comment about time to break out the bags , and he kind of scoffed. Crazy we both come from blue color backgrounds and were raised by blue collar dads, but now he turns his nose up an honest day's work. Crazy


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## chewy (May 23, 2010)

We worked right through the recession as work was already scheduled for 18 months but now during the so called recovery work is slow because non essential construction was halted. Theres no tower cranes on the horizon in my city, just doing small 1 to 2 week fitouts and service work, no 1 to 2 year jobs on the horizon yet, but have at least 40hrs work a week thankfully.


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