With the Way the Economy Is Right Now, Are Construction Service Franchises Still Viable?

November 8, 2017 Posted by kyu7

Okay so, I often have the opportunity to talk to franchise buyers, and for me this is nice because I am retired from the franchising industry. Not long ago a laid-off construction worker was looking to buy a franchise in our area, and he asked me what I thought about getting into a construction services franchise, since that is his area of expertise and he had been working in the industry for about 30 years.

Obviously, the economy is not doing very well, and therefore construction companies are doing so hot, and thus, he was concerned with the industry still in the doldrums if a construction service franchise would be still viable. This is an excellent question, and perhaps it really matters what type of construction service franchise you might purchase. There is some construction going on, and the smart franchisors are exploiting those niches, so that makes sense for them.

Just because the real estate market is still down, and the construction industry hasn’t taken off yet, as we have not had an economic recovery in that sector, doesn’t mean that a small business which does services for the industry can’t make money. The answer really is that it depends. Perhaps, I might be more concerned that our economy is slipping back into another recession, but we won’t know that for another 15 months, and that could be as far away as after the 2012 presidential election.

If you are considering buying a franchise, you should be able to negotiate pretty decent terms in the construction services sector from your franchisor. You might also be able to get a pretty good deal on some low interest loans to get your business started. Sometimes, it makes sense to start when the economy is bad, because you hone your marketing skills, have plenty of time to get experience, and you’re ready to go as the economy picks up and takes off again. So you might want to think about that aspect as well.

There are certainly pockets that are doing quite well in the construction sector, for instance what if you were near an area that was hit by a tornado in 2011, there are all sorts of construction projects going on, just as there is lots of construction going on after California wildfires, major hurricanes, or God forbid a large earthquake. And then there are the schools, and government buildings, not to mention infrastructure projects which generally do occur through government stimulus in the harshest of economic times. Perhaps you could get in on that action as well. In any case I hope you will please consider all this and think on it.

Comments are closed.