Contractors Feeling the Pinch by Recent Economy Changes

When someone loses his or her job, if a pay cut has had to be taken, or if a usually relied upon bonus is not forthcoming this year, expenses must be cut. So many people right now are experiencing drops in income so severe that not only can they not afford “extras” anymore, but also sometimes even basics are hard to come by. For example, a homeowner may have planned to do some home improvements, to paint the interior of the home, do some tree removal or planting, or add a new deck. These things are all valuable to homeowners, of course, and they add value to the home as well, but now they must be put on hold.

Among the first to be affected by the trickledown effect of our country’s financial crisis are contractors. Contractors ordinarily depend on the type of business that is now considered by many as discretionary income. When people are short on money, they are going to pay their mortgage and feed their family first. They are not going to have a deck added, a roof repaired, their house painted that is unless it is absolutely unavoidable.

Spending is down everywhere, in every sector. Even necessities like food, household needs and clothing are down, but what is most apparent is that so-called discretionary spending is significantly down, and this includes contracting jobs like putting in additions for homes, painting a house, and so on.

Because consumers are feeling a financial pinch, even those who do hire contractors are becoming more cautious and selective with the contractors they choose. Previously, for example, they may have gotten just a bid or two for a particular job, but now they may be getting three, four, or five. Comparison-shopping is a common tactic as financially pressed consumers strive to find the best deal.

What about you? Have you postponed or cancelled plans for a home repair or remodel job because of the economy? We’d love to hear your feedback on this subject. Just click the comment link below and sound off. Your email address, although required to post a comment, will never be published on this site for your privacy and protection. Go ahead, click the link and let us hear from you!