While contractors’ and builders’ main focus during a recession should be affirmative and proactive as described in earlier posts on this blog, it is only prudent that part of their survival strategy in a recession be defensive measures that can be implemented as needed. In most cases it will not come to this, but you must prepare for all practical contingencies.

Contractors and builders who don't land enough profitable work to maintain their business in its present form must position themselves to survive until economic conditions produce more work. This means shedding expenses as necessary. It is very difficult to let a treasured employee go, or to sell assets that took time and hard work to acquire. But ultimate survival must be the guiding objective in these decisions. Do not wait too long to scale down your operation, as overhead expenses continue throughout the process and have the potential to derail your plan for survival.

Most of all, do not lose hope. It’s important to maintain a positive outlook and make the most of the available opportunities to keep the doors open for business — and there is good reason to do so. The United States has been through many recessions over the years and has always bounced back stronger than before. The Stimulus Bill and other unprecedented measures being implemented by Congress and the White House are sure to create new construction opportunities over the coming months and years. In fact, encouraging economic signs are beginning to emerge now. Plan on being there to take advantage of the strong, new economy!

Nick Ganaway is the author of Construction Business Management: What Every Construction Contractor, Builder & Subcontractor Needs to Know.

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• Contractors’ and Builders’ Recession Survival Strategies (Part 1) New Business Opportunities
• Contractors’ and Builders’ Recession Survival Strategies (Part 2) Marketing and Training
• Contractors’ and Builders’ Recession Survival Strategies (Part 4) Specific Crisis Management Tools