Masonry Magazine December 2008 Page. 54
Industry News
# Labeling Aerial Work Platforms
Manufacturer members of the International Powered Access Federation (IPAF) have agreed on a new symbol that will signpost the location of emergency descent controls. Emergency descent systems can be found on all types of mobile elevating work platforms. They differ in terms of where they are located on specific machines and how they operate. The decal should be positioned to clearly indicate the location of the emergency descent controls. Operators should ensure that somebody at ground level knows how to use the controls in an emergency.
The artwork can be downloaded from the Resources section of www.ipaf.org. Limited numbers of free copies are available from IPAE IMAS
International to provide funding assistance for a more comprehensive approach to standards-development work in the off-road equipment industry. The focus is on earthmoving, road building and forestry. The partnership with SAE transfers financial costs from individual companies to AEM on behalf of the industry, and continues the support of important industry-related standards work. The MOU is intended to provide a fair and sustainable funding model for SAE standards-related administration and support services related to U.S. and international standards activities.
# Powers Fasteners'
# Stephen Powers Dies at 45
Stephen B. Powers, executive VP of Powers Fasteners Inc., died in a motorcycle accident Oct. 5 at the age of 45. Powers ran the Brewster, N.Y.-based company with his three brothers and managed the firm's
# Responding to the Good and the Bad
# MASONRY NEWS CONTRACTOR TIP
When things are good, hire and expand. When things are bad, make cuts as quickly as possible, before the ship goes down. For years, I had fun in the masonry business. It seemed so simple: The economy was so good that customers would actually call and offer us extra money to do their work instead of hiring someone else. Essentially, they were pricing work higher for us.
Lately, it hasn't been so fun. We are bidding projects for the same prices we charged 10 years ago, while our cost of labor has increased tremendously. In fact, we just bid the OSU Student Union and came in seventh out of eight bidders. My chief estimator worked on this project for six weeks and felt we really had a good number to land it, and we still got beat by 20 percent. The market is tight.
Many contractors tell me that when things are tight, they just keep their people working, paying them until things get better so they don't lose employees. I can agree with this theory, provided there is plenty of work on the horizon. If your company doesn't have a backlog whereby these employees soon can be put to work, remember this contractor tip, for it could save your company: When things are good, hire and expand. When things are bad, make cuts as soon as possible, before the ship goes down.
Many contractors are uncertain of what to do when things get tough. So, when work slows down, they just keep their people on payroll, requiring them to do little to nothing as they wait for things to get better. This is a terrible mistake that has led many businesses into bankruptcy. When you keep unproductive people on payroll, you are spending money that you will never see again. Think about this: Every dollar you are spending (throwing away), has to later be recaptured in the form of future net income. How often does that happen? You'll never get all that extra money you are spending on non-productivity back. Every extra dollar you spend is leaving your financials at 100 pennies. When you go to get it back later, you will replenish your funds via net profit at two to 10 pennies per dollar (2 percent to 10 percent net profit). In other words, it takes between 10 and 50 times the volume to regain those thrown-away dollars. Consider that when leaving unproductive staff on payroll, and you may decide not to be so emotional about laying them off.
When a ship at sea is taking on water and begins to sink, it is the captain's responsibility to throw everything that isn't absolutely necessary to the mission overboard. As the leader of your company, you must do the same when things get tough and the company is taking on losses (water). Start throwing the dead weight out first, and keep pitching until your ship arrives safely at its port.
So what do you do in business to assure you survive? When you have plenty of work, gear up, hire people and go for it. When things are bad and there is no work, make cuts as quickly as possible. You can always gear up again when things improve, all the while having clear sailing to your destination.
Damian Lang is a mason contractor in southeast Ohio who has four companies that do combined sales of $20 million. He is also the author of the book, "Rewarding and Challenging Employees for Profits in Masonry." To receive Damian Lang's contractor tip via his newsletter or to purchase his book, contact Linda Hart at 800-417-9272 or thart@ezgrout.com.