Spend the Off Season Wisely

Spend the Off-Season Wisely

By Frank Gandora

For those of us who have had our nose to the grindstone all year, we now find ourselves with the season winding down. The phone is probably not ringing as much and I am sure you’re ready for a little relaxation and a break from gulping down fast food in your truck while speeding from one project to the next.

Even if you’re lucky enough to work year round, spend some time to perform the following operations during the off season per se’ to get the edge on next year’s season.

Here is a quick checklist that I believe is critical to next year’s success!

Start by comparing last year’s revenue to this year. Review your financials and how they relate to your job costs. Seriously, until and unless this is done you really won’t have a clue about what specific items need attention.

Look at your individual job costs and compare to similar projects from last year. How were your revenues and expenses compared to the previous year’s?

Studying this information is also good for your early tax planning for 2019. It’s always good to meet with your CPA a few months before the end of the year and create a tax strategy. Knowing what you need to do for those last couple months could make a big difference between a profitable year vs a mediocre year.

If you take away anything remember this. There are 2 sets of profits you’re looking at: job profits and company profits. Were your job profits big enough to support your company overhead and indirect costs? Once you have a handle on job costs you can now sit down with your jobsite foreman, estimators, salespersons, etc. Or, maybe take a hard look at yourself in the mirror if you handle those operations.

Sit down with your people and ask them what worked and what didn’t. I bet they know more than you think. Your field people will probably blame your sales and estimating people, and I am sure that your estimators will push any blame on the field guys. When actually it could have been any other number of things, such as crews waiting for deliveries or projects short on materials, or lack of equipment, or equipment break downs. Perhaps your suppliers didn’t really give you those discounts they promised? Or, maybe you just need to raise your hourly labor rate and material mark ups to handle those costs that you can’t control.

These meetings will give you some ideas and solutions, including ideas for what’s needed as far as training for those skills that your team could use some help with.

Now is the time to meet with your banker because you’re probably flush with cash or a high Accounts Receivables. These things put you in a good position to ask for that line of credit or loan. It’s much easier to get pre-approved when you have money than in the spring when you need it most.

Review your overall business plan. What? You don’t have a written and documented plan to share with your team? Well, now is the time to pull out a pen and a napkin and write down what you need to do for next year!

Frank Gandora CCPI is President of Creative Hardscape Company in Lakewood, CO. Frank is also a certified hardscape trainer and a regular seminar presenter at Hardscape North America.

Keys to success with few employees

Keys To Success With Few Employees

How I deal with the labor shortage while increasing profits
and production on the hardscape jobsite.

By Frank Gandora

Now that the holidays are past and we look forward to another great year, it’s time to think about what we want to accomplish for 2019. With winter in full force, many of us become complacent in thinking that if we just do what we did in 2018 we should be successful in 2019. How many of us have actually sat down and really put our thoughts to paper to determine what it was that made us successful and what will it take to continue to be successful in 2019.

As I sit down and reflect upon this past year, one of the things that sticks out most is the fact that my company like many others has been experiencing a severe labor shortage. The economy is great and things are going well. But, we are hindered by our inability to take on many wonderful and potentially profitable projects that come our way because we just don’t have the manpower.

I am sure that many of you reading this have turned away tons of work because there simply weren’t enough people in your company to take it on. Let’s face it no one is available to do the type of work that we do in the hardscape industry at this time.

  • Overcoming the employee problem.

Despite the severe employee shortage, my company just finished one of the most profitable years we have ever had. As I look back to the pre-recession years, we are currently doing twice the revenue with half the manpower that we had back then.

I can assure you this didn’t happen by accident. For years I have been traveling the country sharing my story how I increased jobsite production and motivated my crew to not only perform well on the jobsite but to stay loyal to my company. There are certain key things you need to do to be successful in this economy with a limited labor market.

Now, I could try hiring someone for top dollar in hopes that they will be able to install a certain amount of pavers per year or complete a certain number of projects. But, this would be a gamble because more likely than not, they will lack the experience needed specially for installing hardscape. Plus with no track record, who knows if they will be sticking around for the year after next.

The bigger problem is, I can’t find that worker no matter what the price because every other industry is competing for the same pool of workers. Let’s face it, our industry involves heavy lifting of heavy objects repeatedly. Why would anyone want to work for a company that demands intense physical labor day in and day out?

  • Take care of the employees you have.

With that said, if you try to keep your same people yet never focus on training them or investing in the tools and equipment specifically designed for the hardscape industry, you are going to have a hard time keeping them.

One of my keys to success is that I focus an incredible amount of time and energy on empowering and training the people I currently have. They know the systems we have in place. They are familiar with the types of projects we install. And, when they are trained and given state of the art equipment/tools that make them more productive with less effort, the payback is exponential.

  • Take action.

It starts with a plan, a written document. I don’t care if it is written on a napkin. You want to have some type of document that defines what you want to do and where you want to go.

Many of you reading this article will spend many hours designing a beautiful landscape/hardscape plan for your client, and never spend a minute writing down and trying to figure out how you’re going to get it installed. Imagine what you could accomplish if you put a plan together for yourself and your company with the same effort that you spend designing just one project?

Specifically you want to look at the current hardscape industry and investigate what is being done by industry associations, and other experts etc., and how they address the issue concerning the lack of a qualified workforce.

Make a list of all the trade shows and events that manufacturers and dealers are conducting and attend them with key members of your crew. Investigate what tools and techniques are available to increase jobsite production. In the last year there have been so many great things that have developed in the hardscape industry to help contractors.

Get involved with your industry associations like the Interlocking Concrete Paver Institute. ICPI has more information and resources to specifically help your hardscape installation business than any other organization in North America.

  • Start training.

Don’t stop there, take what you learned back to your crews and conduct organized training meetings. The first phase of training always takes place in a classroom-type setting. This may be a conference room for some of you, or the lunch room table for others. For me, when I first started out years ago we trained at a Denny’s Restaurant. I would write up notes on a particular subject. I titled it, “This is how we do it,” and I made photocopies for everyone.

I took my crew to Denny’s, asked to be seated in a back room or quiet corner and ordered breakfast. Then I passed out my “operations manual” and discussed the directions, procedures and processes we would take on the jobsite.

These meetings also provide the opportunity for the crew to share some of the issues they are experiencing on the jobsite when you’re not there, and discuss ways to eliminate issues that slowed down installation and production. We do additional training for the different skill sets and different levels of experience.

A second phase of training takes place outside the classroom. This training could consist of many different things such as operation of specific equipment or tools, or the specialized installation of a particular hardscape system.

Any time we introduce a new hardscape product, let’s say porcelain pavers for example, we have a special training session. We invite the manufacturers’ rep to attend and help out if possible. We will actually build a small mock-up at our shop. We give everyone a hands-on chance to experience installing the product.

This gives everyone the opportunity to experience the layout, staging, installing, cutting methods etc., of the product. We pay close attention to what’s involved and how the crew performs. That way, when an actual job comes up we already have an idea of production rates for estimating. And, we have installation procedures so everyone has a clear understanding of what needs to be done to install the product.

This procedure is not different than what any sports team does. They practice the fundamentals first so they can work together as a team and then hone in specifically for whatever team they will be playing next.

  • Invest in hardscape-specific tools.

Training is critical. But, you are missing out if you don’t use the tools and equipment specially made for the installation of a paving stone system. It was this combination that allowed us to earn twice the revenues with half the workforce of years past.

I can tell you from experience that the tools you use for your landscape installations are not as practical and efficient as the tools needed for the hardscape installation. I have also seen this first hand while consulting and training other contractors around the country.

If you want to be successful and keep your crew happy and efficient you need to pay really close attention to those tools and equipment specifically made for the hardscape industry. Check out the websites for the various companies that specialize in hardscape tools and equipment.

I see business owners all the time refuse to invest in some type of paving tool or piece of equipment because all they see is the price and not the labor-saving value it can bring to the job. For example, a paver cart might cost as much as $2,000. Some contractors see that price and say, “No way!”

Well I am here to tell you, that one piece of equipment can replace 3 to 5 crewmembers moving materials by hand. Using that cart frees up your crew to work on other tasks. The paver cart will never call in sick, go home early or get tired. And the person using it likes it because they see the benefit of not manually lifting every paver by hand.

An added bonus is that your jobsite will be safer with less back strains, and sore muscles, hopefully your Workers’ Comp claims decrease and your “mod rate” decreases and you save money on insurance and reduce jobsite injuries.

Believe me, if you want to become efficient with your current workforce I cannot stress enough how important the investment in those tools and equipment are. I would first spend $50,000 on tools and training for my current workforce rather than hiring that one special person that you think is going to turn your company around.

  • Tools – train, maintain & organize.

Before you start using a new installation tool, get with your crew and show them the proper techniques and tricks for using it.

Another note, the proper equipment doesn’t do any good if it isn’t in peak working order.

Spend time cleaning, organizing and maintaining tools and equipment so it’s ready to go when it’s needed on the jobsite.

I like to compare our hardscape trailers to fire trucks. When the fire department shows up to a fire you don’t see them digging thru the back of the truck for the fire hose nozzle, trying to untangle the hose and looking for the water key to turn the hydrant on. You don’t see them driving back to the firehouse to grab a demo saw or ladder. Everything they have on that truck is in perfect working order. It has to be because lives are at stake. In your case, your business profits are at stake.

After the firemen they get back to the firehouse everything is inspected, repaired and documented. Then they put everything back in its place ready for the next event.

Make a point to invest in the tools and equipment specifically designed for hardscape installation, and keep them maintained and organized. If at all possible, separate and store your hardscape tools in a different location from other construction divisions you may have in your company.

Designate an enclosed trailer that your crew can hook up and take to a jobsite rest assured that nothing is missing because it was taken to some other non-hardscape project or borrowed for something else. I also like enclosed trailers because they can be a giant billboard in the neighborhood you’re working in. When homeowners see that trailer that shows what you do in addition to your website and phone number, you will get work from it.

  • My tips to for success year after year are: 

Create a plan of where you are going and how are you going to get there including how and when you’re going to train the various people in your company.
Train your people, talk to them and let them have the opportunity to try new installation techniques and practice using the new tools and equipment. This will empower them.
It’s critical that you use the right tools and equipment for the job. Before you hire that next person (which you probably can’t find anyway) call your local hardscape tool sales rep, compaction equipment dealer, tractor dealer, etc., and invest in those things that help your current labor force.

These things are part of the secret to installing more projects with less people.

 

Frank Gandora CCPI is President of Creative Hardscape Company in Lakewood, CO. Frank is also a certified hardscape trainer and a regular seminar presenter at Hardscape North America.

Managing your business thru these crazy covid times

Managing your business thru these crazy covid times

By Frank Gandora

 

Frank GandoraThe covid-19 pandemic has literally turned this world upside down. In my state, our governor recently announced the reopening of our state parks. Then he recommended we limit travel to 10 miles from home, far short of the nearest park. For our protection, the state closed down all the public restrooms at those parks and installed porta pottys because apparently the coronavirus doesn’t hang out in porta pottys?

Restaurants are now open, but they can’t serve food beyond 7:45pm because that’s when the virus comes out. Those same establishments can serve liquor until 10pm. Apparently the virus doesn’t affect beer drinkers until 10pm…. Are you experiencing the same craziness where you live?

The good news is that most of us in this line of work have been deemed “essential.”

I hope your business is doing well, and I would like to share a few things that my company is doing to navigate these crazy times.

One of the first things we did was develop an emergency preparedness response plan. It sets the rules, guidelines and procedures to prevent, contain and manage most anything coronavirus related that comes up with our crews and jobsites. The CDC offers boilerplate documents to help in writing a plan.

We refer to our plan often. For example, at the beginning of the lockdowns a crew member became sick. The plan gave us specific steps to follow for dealing with it. Without a plan, everyone has different opinions of what to do, who to call, when to go back to work, etc.

We include our plan with our bids and other documents we send to clients. It gives them peace of mind that we are taking the pandemic seriously to protect both them and our crew members.

In a weird way, our internal communication has improved. Instead of on-site visits or weekly meetings, we have relied more on text messages and emails between the project managers, field and office staff. This creates a documented record of the communication and eliminates excuses for people forgetting or not hearing what was said.

Another positive change has been the organization and cleanliness of equipment and jobsites. On some sites wash stations have been built so crew members can wash their hands frequently if needed. Tools that are shared by multiple people can be sanitized after each use by using a mixture of 1/3 cup bleach to 1 gallon of water. Broken tools and equipment are identified during the wash down rather than just thrown in the trailer. Tools and equipment also seem to find their proper place in the trailers.

On the jobsite, crew members are taking extra steps to watch out for each other. Crew members are now more cautious of each other’s safety and health because it could directly affect each of them. They regularly check on each other to see how they’re doing, thus staying connected and healthy.

Beyond socially distancing and wearing masks we have also tried to limit coronavirus exposure by having crew members drive their own vehicles directly to the jobsite. Fewer people in a vehicle helps lessen crew members’ chances of catching and taking the virus home with them.

OSHA is a great resource for helping contractors deal with virus-related issues. OSHA safety regulations affect all jobsites including residential. A lot of contractors don’t know that OSHA recently reversed the recordability requirements for positive covid-19 test results. What does that mean? Check it out on their website and keep an eye out for those types of changes on a regular basis.

Lastly, one resource that has really helped me stay updated on covid-related regulations and best practices is ConcreteBusinessUpdate.org. This website was designed specifically for hardscapers by ICPI, NCMA and the Canadian Concrete Masonry Producers Association (CCMPA). It brings you the latest on what you need to know to manage your business thru this pandemic. I recommend you check it out.

Be strong. Be of good courage. God bless America; long live the republic.

Frank Gandora CCPI is President of Creative Hardscape Company in Lakewood, CO. Frank is also a certified hardscape trainer and a regular seminar presenter at Hardscape North America.

 

Are the good times really over?

Are The good times really over?

By Frank Gandora 

Merle Haggard once asked in a song, “Are the good times really over for good?” I think back to the time before the covid-19 pandemic when gas prices were low, the price of lumber was never a concern, and the economy was running on all 8 cylinders. Our economy was expanding at a brisk pace and the future looked so bright we had to wear shades.

We were running from project to project, no worries about material or equipment availability. If you wanted that new truck or needed a special part to fix a piece of your equipment it was no big deal, you just bought them and went on with your day.

At the beginning of the covid-19 outbreak we all braced for the worst and jumped on board with the, “Give us 2 weeks to flatten the curve.” Those 2 weeks turned to 4 and then more. I don’t think anyone knew what would happen next. I was getting calls from clients – builders, general contractors and homeowners – begging for discounts because they were not sure if they were going to make it thru the pandemic. I was just as scared as them. I didn’t want to lose any of the things I had earned during the “good times” so I drank the Kool-Aid and gave discounts, gave away extra services, and did whatever I could do to secure my back log to prepare for the worst.

Things never did turn out like we thought. Besides the lock downs and mask mandates something special happened to our industry that no one thought would happen. The demand for home remodeling, landscaping and outdoor living spaces, etc., went thru a record breaking streak. Right now, professional installations are outpacing the DYI market and demand for our contracting services is stronger than ever.

Then it happened, things sneaked up on us again with something no one expected, SHORTAGES! It wasn’t about toilet paper this time. It was about something even more important. There are now shortages of materials like wood, concrete, pavers, retaining wall blocks, bricks, outdoor lighting, furniture and that new F-350 Super Duty King Ranch I always wanted. The biggest shortage of all was labor. Who knew that the day would come where someone could make more money staying home playing video games than actually going to work?

Once again we wonder what is going to happen next. Some of you may be of the negative sorts, but I am here to tell you the future looks bright for our industry, if we are smart and ready to adapt to the changing times.

The pandemic has created a need for people to be outside. We are going to see more construction with parks, outdoor shopping areas, enhanced pedestrian areas, friendly streetscapes and other projects.

At the same time I’m beginning to see urban areas become more concentrated especially in the residential housing market. Residential housing is being designed and built with smaller footprints thus leading to unique and special outdoor areas consisting of intimate patios, decks and garden areas.

In the commercial sector, parking lots are going have more PICPs and rooftops are becoming areas for plaza settings, outdoor kitchens, swimming pools, and believe it or not, roof top dog parks. Multifamily projects are also looking at expanding space outdoors with rooftop areas or patios, and entertainment areas and such.

As an industry we need to focus on those trends and meet those needs. These concentrated areas will require unique types of construction, such as Low Impact Development and LEED’s requirements. Implementing Permeable Pavements in both commercial and residential projects is here to stay and it’s best you bring yourself up to speed on the great benefits PICPs (Permeable Interlocking Pavement) have to offer such as water conservation, storm water management and first stage filtration.

Now let’s get back to those pesky shortages. What is the best way to overcome those shortages you might ask and meet the demands of a changing landscape? A great place to get a jump start is by attending this year’s HNA trade show in Louisville KY.

At HNA you can see, feel and touch that equipment that will make your hardscape projects go faster, often with less labor. By attending workshops and other continuing education classes you will gain insight to unique ways to run your company. You can network with other contractors, share ideas with others around the country that don’t compete with you.

You may come away with an idea that you can implement in your hometown to give you that edge you need to get to the next level. HNA gives you the opportunity to see what the hottest products, equipment, tools and trends are in the hardscape industry.

If you find yourself waiting for your local supplier or manufacturer to make that one type of paver or wall you always install, now is the time to branch out and learn about the many different kinds of hardscape products that you can introduce to your market that competitors don’t even know exists. Of course don’t forget to attend my workshop on Thursday the 21st, “Secrets every contractor should know about the hardscape business.” Hardscape construction isn’t what it used to be. Actually, it is going to be better.

Frank Gandora CCPI, CS, PICPS is President of Creative Hardscape Company in Lakewood, CO. Frank is also a certified hardscape trainer and a regular seminar presenter at Hardscape North America.

Air Force Academy

Airforce Academy, Colorado Springs, CO

50,000 SF of Holland Stone 8cm installed mechanically.  Charcoal colored pavers for the main parking area and white pavers installed to represent the parking strips.

Air Force Academy

50,000 square feet of Holland Stone installed mechanically. Charcoal colored pavers for the main parking area, with white pavers installed to represent the parking stripes. 

 

Union Station

Union Station, Denver CO

Union Station

During the 2011 redevelopment of Denver’s Historic Train Station in the LoDo district, Creative Hardscape installed over 65,000 SF of custom colored patterns with pavers manufactured by Hanover Architectural Products. Officially known as the Denver Union  Terminal, this redevelopment will serve as the hub for Denver’s light rail, heavy rail commuter and RTDs bus terminal hub.

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Hildebrand Ranch Park

Hildebrand Ranch, Jefferson County Open Space

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Hildebrand Ranch, Jefferson County

The permeable interlocking concrete pavers installed by Creative Hardscape at Hildebrand Ranch Open Space Park’s parking lot are an ideal and aesthetically pleasing installation for the setting, will improve water quality, will positively add to the park user experience and will reduce long term maintenance costs. We commend Jefferson County Open Space for being a leader in using new and innovative environmental techniques at it’s parks.

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