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Rate cutting and undercutting has started not suprised

Discussion in 'Heavy Equipment & Pavement' started by Gravel Rat, Aug 22, 2008.

  1. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    Heard that the undercutting and rating cutting has started between the contractors. I'am I surprised NO :laugh:

    I was told its getting ugly already have to see how far it goes it may get down to working for expenses and no profit.

    Its going to be fun seeing a battle royal when things get really tight for work this winter.

    Sure glad I don't work for a excavation contractor right now the lay offs will be not too far off.

    The no realestate sales are having affect even houses in the 300,000 and less range are not even selling.

    It is all good because it will be a eye opener for all the greedy people especially the babyboomer generation. Maybe the local gov'ts will realize you need sustainable employement. A economy running off of realestate and house construction isn't good enough.

    I won't be surprised if some of the excavating companies close up shop how can they afford to make equipment payments with very little jobs.

    With the pinching and hair pulling starting I guess it will be back to none of the contractors speaking to each other. Usually the bad mouthing starts too.
  2. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,101

    All is still good here.
  3. ccstrebe

    ccstrebe LawnSite Senior Member
    Posts: 576

    You are starting to sound like a broken record. If things are that bad why don't you move to a different town, state, or country.

    If I had your outlook on life I'd probably shoot myself. :cry:
  4. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,101

    GR's having his equivalent of PMS, unfortunately, this happens more than once a month, he must be on a heavy flow.
  5. ccstrebe

    ccstrebe LawnSite Senior Member
    Posts: 576

  6. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,101

  7. dozerman21

    dozerman21 LawnSite Bronze Member
    Posts: 1,170

    Ron gets to pass Go and collect $200 for knowing who Bob and Tom are, or at least posting their song.:clapping: They are the big dog morning show in town, although I know a lot of the midwest gets them too.:weightlifter: Funny dudes.

    Here's one of my favorites:


    In honor GR's weekly rant, this Donnie Baker classic is for him.

  8. jefftb

    jefftb LawnSite Senior Member
    Posts: 563

    the joy and glee with which GR takes in seeing or witnessing the pain and misfortune of others.
  9. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Posts: 2,454

    what is quite amazing is that it has been the same song and dance for 3-4 years....I have seen huge money made during that time and now that the times have become slower, folks are still working and living.....but this guy is still living in the same spot reading the same newspaper talking macro economics derived from the headline news of the day......and how do you define insanity?
  10. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    Its only time for the slow down to hit the other areas of B.C. .

    I find it funny that the undercutting has started because these guys had to realize the gravy train wasn't going to last. People with 1 million pocket change isn't a unlimited supply.

    It is so cheap in the USA now the Albertans are going to the USA to buy investment property. Talking to some friends last night they said places in the Okanagan etc that were depending on the Albertan money is dissapearing.

    I think the Vancouver/Lowermainland guys ie people like Ron better think its not going to happen to you and think the work will never end. It is slowing down all over Vancouver island and the Interior of B.C.

    I get to talk to people from all over B.C. that are in the different industries mainly trucking and construction and talk to people from Alberta.

    Excavation contractors are so deep into debt each one is alteast 100 grand in debt. The market is so flooded with excavation contractors some of these guys are gonna have to go out of business there isn't enough work for them all.

    Some stats I got on my area

    There was only been roughly 18 building permits per month for 2008 compared to 2005 it was 33 permits per month and 2006 32 per month and 2007 it dropped to 27.

    There is 673 companies in the construction out of that there is probably 350 landscaping and excavation companies.

    So you can see when you go from 385 to 390 house per year being built to 216 houses or less this year there is too many people for the work out there.

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