9th October 2014, 06:24 AM
In the Pit Wrote:Key quote: “A broad-based upturn in construction demand has created a boom in job creation this summer, as construction companies look to replace capacity lost in the aftermath of the recession. However, acute skill shortages meant that subcontractor charges rose at the fastest pace since the survey began in 1997."
Other sectors are responding to upturn + lack of capacity by raising prices. Simple supply and demand, innit. But how many units have put their prices up? We haven't.
Begs the question, if every other subcontractor can get their head around the fact that when you're in demand, you can charge more, why haven't we? I sound like a raging capitalist, but if we can't even make the effort to pay each other a decent rate when we've got the opportunity, how are we ever going to make progress on the pay problem?
Problem is that most of the units are still run by hippies/old lags who started out in the 70s and 80s and think they're still doing archaeology for the social good... If they had more balls and raised their prices in the face of being swamped by work everyone would be better off. But they all seem petrified at 'annoying' clients or being under cut by one man bands
Just like in every other part of the industry one man bands can undercut everyone but they can't handle medium or large sized projects so I don't know where this fear comes from. And most clients won't care about prices going up if the work is done quickly and efficiently.