Small mom pop firms flourishing in the construction industry
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Small mom pop firms flourishing in the construction industry
The small shop firms continue are responsible for up to 80 percent of all building works. The market share of these small firms has increased over the years. The big firms mostly obtain mega government, residential and institutional projects (Gerald Finkel, 1997 pp. 6). The small firms have increased in growth.
The small companies in the construction industry focus in customer satisfaction. This is unlike bigger companies which focus on volume and the amount of money made in construction contracts. Customer satisfaction is placed above everything else in small mom and pop construction companies. Once a customer is satisfied, the possibility of obtaining other construction contracts from clients is increased. The small size of the firms also makes customer follow up easier. This is not possible with bigger firms with a huge clientele. The follow-ups are all geared towards customer satisfaction. The feeling of personalised service endears the customer to the construction company.
The small mom pop firms do mostly small-scale job. These include family residential houses and other smaller construction works that cannot be done by larger firms. These small scale jobs are many in most economies. The small projects account to about 80 percent of all projects. These small companies are, therefore, able to make money from such projects and control a bigger market share in the construction industry than the bigger firms. The big firms rake in billions but, the smaller firms can get more cumulatively.
The success of a small construction firms is attributable to the efficient labour management (George Jergeas, 2009, pp. 4). Poor management of labour reduces productivity. The small firms have a manageable workforce whose productivity can be assessed. The management of tools in small firms is efficient. Losses in small firms are low due to excellent management that is attributable to its size
References
George Jergeas. (May 2009). Improving Construction Productivity on Alberta Oil and Gas Capital Projects, Retrieved from http://www.albertacanada.com/files/albertacanada/Improving_Construction_Productivity.pdf
Gerald Finkel. (1997). The Economics of the Construction Industry, New York: ME Sharpe.
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