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Mr. yates

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joel_19
joel_19 Member Posts: 931
His article in contractor this month about new construction was spot on!!!! . It does seem perhaps a touch worse where he is. I don't understand why guys stand in line for that abuse. Up here most people would tell those biulders to pound sand. Still , steel and gas has gone through the roof. The average small company spends over 9k per year PER EMPLOYEE for health insureance and it's projected to go over 14k by 2006. And still my competition doesn't raise thier prices!!!!!! Stupid!!. Hey Mr Yates looking forward to seeing you again at ISH Next week. I'm closing the office and bringing everybody all the staff even the secretaries. See Ya

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  • Dave Yates (PAH)
    Dave Yates (PAH) Member Posts: 2,162
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    ISH

    It'll be great to see your smiling face again. The Wallie dinner in Providence was a hoot. Will Erica be on hand? Lois is coming along for the ride.

    You've hit the nail squarely on the head. Insurance goes up, yet pricing remains the same. GC's take away the profit center and hourly rates per fixture don't change. The guys get raises and the charge to builders remains the same. Little by little the profits drain away until one day there aren't any profits remaining. And that's the same day the builder parades a group of other mechanical contractors through the job site - each one believing he can beat your price and make a profit.

    Meanwhile, the builder's profit margin remains at 20% on average.

    Fortunately, there are builders out there who value high quality work and maintain a good relationship with subs. Seems like they're getting scarce.

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