The Business Cycle

As the economy begins to contract, business begins to slow down for Normal Maintenance. They find that they are caught up on work and they aren't getting so many phone calls. The owner is able to reduce his labor costs by cutting back on overtime and eliminate working on the weekends. When the phone does ring, homeowners are asking for bids on work - not just placing work orders. Normal Maintenance loses out on several jobs because their bids are too high. The company begins to look for new suppliers who can provide them with materials at a cheaper price so they can be more competitive. The building material companies start offering "deals" and specials to contractors in order to generate sales. In general, competition for work has increased and some of the businesses that popped up during the expansion are no longer in the market. In the short term, the owner is confident that he has enough work to keep his crew busy, but he's concerned that if things don't pick up, he might have to lay off some of the less experienced workers.