Qualified Remodeler Magazine

DEC 2018

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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Page 46 of 56

yet no one seems to comes up with a plan for an immediate and long-range solution. What actually occurred within those companies mentioned in the first few para- graphs above? How does this relate to your business? Most of these companies ignored the is- sue of impending labor shortage and/or labor diversity. Conversely, consider UBER, an ever-growing international company that ¡ Marketing costs (producing leads) contin- ue to skyrocket. Each of these issues are now considered a crisis; however, every crisis also creates opportunity. Many companies prospered during the recession—did yours? The res- olution lies in recognizing and reacting to these issues before crisis becomes chaos. Many sources speak about these problems, THERE ARE TWO MAJOR ISSUES THAT ALL HOME IMPROVEMENT COMPANIES ARE FACING. What would you have said if 30 years ago someone had told you that by 2018, Sears Roebuck would no longer be a leading re- tailer (in 2015 their installed home improve- ment division, alone, sold almost $1 billion annually) and, possibly, by 2019 they may no longer be in business? And if someone were to ask you what happened to Blockbuster, Kodak, Blackberry or home improvement indus- try giants such as AMRE or Pacesetter— which no longer exist as dominant compa- nies—how would you reply? Or was your company prepared for the recession (2007 to 2014), and how did you respond? A MAJOR PERCENTAGE OF HOME IMPROVEMENT COMPANIES ARE HAVING THEIR GREATEST SALES YEAR IN 2018 WHILE SEVERELY INCREASING THEIR BACKLOG. This begs the question: How has this affect- ed their "cycle time," their "cash flow," or their "customer satisfaction" rating? These and similar problems created by a rising economy and the availability and ease of consumer credit has and will have critical and unintended consequences for their business. Two major issues, which all home im- provement companies are facing, will continue to exist and even increase in 2019. That's why trade magazines and various data-producing sources call this a "crisis." ¡ The greatest "skilled labor" shortage in the history of the industry. Facing the Reality of the Labor Shortage Crisis By Dave Yoho Photo: ©bonniemarie / Adobe Stock 46 SPECIAL SECTION: HOME IMPROVEMENT PRO | December 2018 QR QualifiedRemodeler.com

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