I just finished reading the article and this is one of the best written columns that explain the current US demolition industry issues that I have read.

We feel that if the US demolition industry cannot figure out what the future trends are - the industry will always be a follower – reacting to what clients, competition, and vendors do, and results will be mediocre at best.

We have also heard and read comments that this bidding war has been going on for years in the US demolition industry. This may be true as it appears that some industry executives have promoted such heinous acts as massive downsizing, crisis driven cash-flow operations, and insane bidding strategies. These failed strategies have wrecked fine organizations and have hurt productive and loyal employees.

We wait with great anticipation to read other comments as it is time to very seriously address these issues…….

demolitionnews;12682 said:
...... clients will become accustomed to this new, super-low level of bidding and, even if there is a sudden and marked upturn, it will take months and possibly years to redress the balance.

If, however, they're forced to cut corners in training and site safety, or if they're forced to lay off parts of their workforce, then I am considerably less comfortable with it.

And I am NOT happy that this low-bid trend will open the way to unprofessional and even unscrupulous practices.

This, unfortunately is the way of EVERYTHING these days. No one pays top dollar, no one is buying new cars, no one is renovating their homes, spending is at a standstill. I go to my local DYI warehouse and get swamped by a dozen employees if they can be of any assistance as I look for a screw to fix my front door.

Even in my business, the only way to even survive is to undercut, low bid and compromise. Three years ago I had to throw my entire pricing structure out the window and cut my rates by almost 50% in order to get any work.
I had to suck it up and realize that I would rather work for next to nothing than not work at all.

In fact the video side of what I do is relatively new to what I offer. What began as an 'experiment' has now become more of what I do than straight up still photography.

While the development of the digital camera seems like an natural progression in the evolution of the visual image it has for many out there become certain death financially.

Now everyone out there with a 10MP digital camera is a 'expert' in the field.

Fellow photographers of mine are going under left and right because long standing clients of theirs are going else where for images. It is a fact that even in my industry they are going with the lowest bid, regardless of experience, talent or professionalism.

The worst of it is..... I'm sorry 'John', but I know we have done business for the last 15 years and you have always done our photography but we just can't afford to spend any money in marketing right now. In fact, my wife just took a weekend workshop and she is going to do the work for $400 instead.

That's the way it is..... we, everyone, all industries are cutting back doing it for less, doing it for nothing, and while taxes are going up and expenses are the same its not going to get better anytime soon.

demolitionnews;12672 said:

But in my opinion, none of that is anywhere near as important as the underlying issue here. Bids are coming in WAY below estimates. And while I accept that these estimates are far from being 100% accurate, I do not accept the fact that a 20-% differential between estimate and bid price is healthy for the US demolition business. Nor do I believe that demolition technology shifts sufficiently in the 6-12 months between estimate and bid that would make this difference justifiable.

Mark,

I know what you are driving at and over-all the facts are quite disturbing but I think you are looking at it all wrong.

All your articles having you throwing your hands in the air asking why this and why that... as if you woke up from a 10 year old sleep and are just stumbling onto the scene.

The justifiable difference is simply the state of the economy, nationally and internationally, from where we were a year ago, 3 years ago, 5 years ago.

All the jobs that demolition contractors have been working on in the last 2 years were set in motion before the crash of the metals market came about.

Bids came in at a higher rate because at the time it was justified to do so.
Profitability, manpower, machine power, spending were all part of the bid package with a look to the future to be able to make the company grow, expand and flourish.

To bid on a job today you are doing so to keep the company afloat. Enough to pay for the workforce, the fuel costs, keep the equipment running and paid for and maybe break even. No, not good for the US Demolition Market but a necessary evil to make it work.

Today we have a National Holiday here in the states ( a bank holiday as you call it) that is called Labor Day. Labor Day celebrates the American Workforce. In part it signifies the end of summer, the start of the school year the beginning of the march into colder months, towards spending time with family our winter holidays of Thanksgiving and Christmas.

In today's online newspaper the Boston Globe the headlines states
On this Labor Day, 5 million Americans have been out of work for more than six months, a record number that forecasts a slow, difficult recovery.

The last huge stock market crash robbed most people's retirement savings of almost 60-75% of the value. And that was before they were laid off.

Job layoffs here in the USA have been rampant for the last 2-3 years.
Businesses are still closing, bankruptcies for even what it seems solid corporations are happening across the board.

The bankruptcy of General Motors here is the states has put even more people out of work and closed numerous plants. You might think, well there's an opportunistic market for demolition contractors. Well yes and no. Until the restructuring of GM plans for the demolition of any plants are put on hold, for how long ? Years probably, maybe longer.

James;12633 said:
Mark,

Also a lot of those

demolitionnews;12634 said:
Another key point raised by Mr Taylor was the fact that some of these demolition projects are attracting bids from "Bob's Landscaping". Ours is an industry that has long striven to improve site safety and reduce accident rates through a mixture of training and ever increasing professionalism.

Are we to stand idly by while "Bob" and his like undermine the profitability and possibly survival of legitimate demolition contractors whilst quite possibly putting their own lives and the lives of other in danger?

Again this has been happening for years, you're talking in circles here. There have always been the Bob's out there and there always will be, and there's pretty much nothing you can do about it.

But let's take your analogy, so if "Bob's Landscaping" submits the lowest responsible bid, the owner should through their bid out?

What if Bob does has the financial background, bonding, and the like?

Again look at the bidder's on these large projects, I see legitimate companies bidding on them, not "Bob's Landscaping".

Again, a lot of these contractors started out as "Bob's".

There is no so called US bidding war going on! It's just the nature of the industry and you seem to be the only one asking about it.

PS - I will give some leeway, I didn't listen to the whole podcast, because I could already see where it was going and I couldn't stand listening to it anymore.