Steering Through the Slowdown

It seems the economy has slowed, and new work is harder to come by. Like everyone, I’m wondering how long this will last and what we need to do as a company to get through it. These are my thoughts and the direction we will be taking until things pick up.

The first thing we will be doing is putting a temporary freeze on raises. We will review where we stand with equipment and truck costs, focusing on maintenance and repairs. We’ll continue to maintain what is being used but will avoid spending money on unnecessary repairs. We’ll also forecast the work we have ahead and decide if we need to cut back on crew sizes. Every area of spending will be reviewed, including inventory, small tools, fuel, and plant purchases. We’ll make sure we are using the customer’s money to fund job purchases and not putting materials on credit, whenever possible. And we’ll stay on top of our billings so that we don’t let anyone fall behind.

The second thing we will be doing is reviewing all potential work and making sure we have given our best effort on all estimates and proposals. We’ll call back any recent customers to see if they’ve made a decision on their project and find out if we can make a better deal. We’ll also be holding company meetings to discuss sales and any potential work that may have fallen through the cracks. It’s important for management to know that this is “all hands-on deck time.”

What we won’t be doing is panic, and neither should you. If you are a maintenance company, this is the time to play “small ball.” Work on enhancements for your maintenance projects – sell flowers, mulching, tree trimming, sprinkler repairs – and take care of anything you’ve put off because you didn’t have time. Walk your jobs and evaluate them. Construction companies should do the same. Maybe you have customers who need masonry repairs, power washing, or sealing. Walls and walks that are root-damaged. Call your old customers and let them know you have time for small repairs and renovations.

If there’s a silver lining, it’s that sometimes we need this slowdown to regroup, organize, and make our companies more efficient for the future.

~ David Horton, 2025 CLCA OC Chapter President