Construction projects have become more expensive than ever to complete, with prices rising 27.8% since April of 2020. 

Although prices of labor, materials, and overhead continue to rise - bids are not reflecting this increase.

What should we be doing to proactively approach this decline in profitability? 

Over communicate. Subcontractors AND general contractors need to provide project owners with timely and credible 3rd party information about changes in material costs and supply chain delays. 

Growing too quickly and not having the appropriate resources to sustain growth can quickly become a financial burden on your business.

On the other hand, growing too slowly in a changing industry can negatively impact your financials too.

So, how can you manage risk AND drive responsible growth?

Josh Tinaglia of Soligent Distribution, says one way to achieve this is by using your financial tools to create leverage.

Learn more about a distributor's point of view in this episode.

Establishing a large line of credit with a bank needs to be a goal for your business.

But, how do you accomplish this goal?

You can start by utilizing a credit card. Consistent and responsible usage will help you build your businesses credit.

What else can you do? Listen to this week's episode of Finance Friday to find out.

The $1 trillion infrastructure bill could be fully passed soon, which will create huge opportunities for the construction industry. 

Public projects, however, have become increasingly difficult to staff due to the ongoing labor shortage. 

Median time to fill an infrastructure job, for example, is 23 days, compared to 19 days in other fields.

Let's explore what does the construction industry need to do to effectively navigate this opportunity.

Even if you build profit margin into your project bid, your cash flow may still be negative.

How?

Slow pay from a pay app, retainage, upfront material costs, and schedule delays, can all have an effect on your cash flow.

The construction industry is beginning to see signs of economic recovery. With that recovery, however, come many challenges.

Hyperinflation, for example, may continue to drive drastic increases in commodity prices. 

So - what can you do to absorb these unexpected increases?

On this episode of Walkthrough Wednesday, Russ discusses what you need to know in order for your business to remain cash flow positive.

Supply chain issues, labor shortages, and outdated technology are negatively impacting the financial health of many construction companies. 

Manually entering data slows down team progress and increases the likeliness of an error.

We sat down with Ron Goldshmidt, CRO and Co-Founder of Briq, to discuss how the industry is changing and what it means for your business.

Top Fortune 500 companies, like Apple and Nike, use debt to grow.

Why?

It's just not possible for them to grow only using the cash they have on hand.

The same rule applies in construction. If your goal is to grow your business, you need to get comfortable with debt and financing too.

In order to bring young talent into the construction workforce, it's imperative that the industry adapts to the needs of millennials.

So, what are a few ways this can be accomplished? Increasing wages and opportunities for career advancement confirms to your crew that they're valued within your company.

Join Russ Briscoe as he talks through an article published by Construction Dive to find out what else we can do to attract the newest generation of the construction workforce.

When you leverage financing responsibly, you gain the ability to utilize cash for other aspects of your business. 

Vice President of Marketing, Jon Katz, outlines these areas for you in this episode of Finance Friday. 

The best part? You get peace of mind because your cash flow is much stronger.