Delaware’s Business Owner: Look to the Future: Staying Afloat During Economic Recession
Even in a sluggish economy, there will be a few industries, and companies, that seem to escape unscathed– somehow avoiding the ups and downs that affect everyone else to a devastating degree. The construction industry is not one of these, with the costs of materials nearly tripling over the past few years, but the HVAC industry has remained profitable throughout the tumultuous past few years.
It’s just a simple fact that people need HVAC technology. Noland Mechanical, an Eastern Maryland construction, HVAC, and plumbing company, has stayed in the black during the COVID-19 pandemic, ecological disasters, global tensions, unprecedented weather events, and more.
Noland’s senior estimator and project manager, Keith D. Clarke, has played a big role in the success of the company. “I have kept up-to-date on air quality technology, which has become very important in today’s COVID-19 world. Noland is committed to keeping up with cutting-edge technology.”
HVAC is inherently valuable lately, too, which doesn’t hurt. As the COVID-19 pandemic worsened across the globe, and started to seriously affect the United States, the CDC recommended the use of HEPA technology as part of a multi-layered approach to handling virus aerosols responsible for infecting people with COVID.
Even apart from the pandemic, the need for HVAC systems is only increasing. Ecological disasters like forest fires and air pollution greatly increase the need for quality air-filtration systems in more places that they weren’t necessarily needed before, like private homes. Excellent ventilation and refrigeration has always been a necessity in healthcare, and that need only grew during the pandemic. Demand for quality heating and air conditioning is also growing as a result of recent unprecedented high- and low-temperatures across the United States.
Keith D. Clarke notes that especially during times of economic hardship, people still prioritize getting or upgrading their HVAC systems because a more efficient system means decreased energy bills, ultimately saving customers money even if the cost of getting a new system is more than they’d prefer to pay at the moment.
Of course, no company is completely immune to the effects of a recession, or an economy that’s been negatively impacted by something like a pandemic. Supply chain issues are unavoidable lately for every industry, and HVAC companies are no exception. Keith D. Clarke describes how Noland Mechanical had to purchase PVC pipes in bulk, to stockpile them and ensure they wouldn’t run out in the event of future supply issues.
Construction companies in general have had to diversify their scope of work. Noland Mechanical has accomplished that by focusing on projects like government-subsidized housing that got accelerated, rather than shut down, during the pandemic. Construction of private residential homes slowed down drastically, but many commercial construction projects proceeded more or less on schedule. Clarke recounts Noland Mechanical’s work on hotels, resorts, and other commercial projects during the pandemic.
The Design-Build services that Noland Mechanical offers are also a factor in their stability for the past few years. Design-Build services greatly benefit all of the companies working on a project, as well as the client.
They work when everyone involved in a project collaborates as a team, sharing accountability and responsibility together. Improved communication helps immensely in reducing interpersonal conflicts between contractors, architects, engineers, and clients, which means that projects get completed much faster and more efficiently.
Noland Mechanical has stayed profitable during the past few years as a result of creative thinking, flexibility in scope of work, and diversity in services offered. To keep the revenue coming even when times are tough, construction companies should focus on sectors that aren’t struggling (like government-funded projects). It also doesn’t hurt to anticipate material needs and stockpile building materials when you can to keep client projects on schedule.
Taking a leaf out of Keith D. Clarke and Noland Mechanical’s book is sound advice for any construction company hoping to make it through the next recession or global crisis.