Masonry Magazine April 1986 Page. 48
Smaller Construction Firms Outperform Large Ones, Survey Shows
While some construction firms are doing very well, others are barely getting by. This item is among results from the first annual Contractor Profit News (CPN) Financial Statistics Survey of Construction firms. The survey results also confirm some commonly held beliefs on financial conditions in construction firms and dispute some others.
Among current industry trends, the survey results clearly show smaller firms are outperforming the big firms. "While small firms reported a median operating profit of 5.6%, this steadily declined as revenues increase, to where firms over $50 million in revenue reported a median operating profit of only 0.5%," said CPN publisher Frank A. Stasiowski. This result confirms the current viewpoint that there are too many large firms chasing too few large projects. This leads to firms taking projects at little or no profit, according to Stasiowski.
The profit results are also better for firms in the Northeast region, and firms doing primarily government work. The finding on government versus private sector firms results is a surprise, says CPN Director of Research William Fanning.
Other results of this survey confirm popular beliefs about the construction business. Among these are slow payments to subs by general contractors the survey shows general contractors collect their payments 20 days faster than subcontractor firms. In other findings, government sector firms spend more on direct project labor-a portion of project costs than do private sector firms.
QUALITY MORTAR AT LOWER COST
Easy-Spred, the mortar plasticizer that replaces lime. Easy-Spred is a mortar plasticizer that performs better and costs less to use than lime. One 7 lb. bag of Easy-Spred replaces a 50 lb. bag of lime. Its water retention capability promotes better curing, less shrinkage, and the contractor doesn't have to retemper as often to maintain plasticity. Board life is increased as much as two times compared to a Portland/lime mix.
Easy-Spred is made from a formulation of minerals naturally compatible with basic ingredients in mortar, and is effective for use with brick, block or stucco. It accepts color pigments without bleaching, as lime often does, to make a brick color match easier.
BOCA, ICBO and Southern Building Code Conference listed.
Masonry Institute Releases New Color Film
"Masonry Veneer-Lasting Beauty" is the title of a new color/sound film released by the Masonry Institute of America. The film covers topics such as slab marble, clay brick, granite slabs. concrete block, field stone, anchored veneer and adhered veneer.
The film is available for sale or rental in 16mm color/sound or VHS video cassette and runs 22 minutes long. For more information, write Masonry Institute of America, 2550 Beverly Blvd., Los Angeles, CA 90057.
11% Rise Reported for Construction Contracting
Contracting for new construction rebounded in February, reversing January's steep decline, according to McGraw-Hill's F. W. Dodge Division.
February contracts, valued at a seasonally adjusted rate of $229 billion, rose 11% due to a surge of delayed public works projects.
"With most of the first quarter now on record, a stronger pattern for 1986 is emerging than indicated by recent data." said George A. Christie, Dodge's chief economist.
New Rental Data on Construction Equipment
More than 2,200 monthly, weekly and daily nationally averaged rental rates for 1,330 types and sizes of construction equipment are listed in the new "Green Book" published by Associated Equipment Distributors.
This 37th edition of the AED Rental Rates Compilation also includes condensed specifications covering models. horsepower, capacity and other information about construction equipment.
The price for the new "Green Book" is $25, plus shipping and handling. Contact: AED. Dept. R. 615 W. 22nd St., Oak Brook, IL 60521, (312) 654-0650.