The State of the State

February proved to be far busier than what is reflected in postings here. The bid calendar was experiencing so much activity that it was not possible to meet the needs of all the RFP’s. I am hesitant to forecast that a strong first quarter will carry into the second quarter, but I remain cautiously optimistic.

Market indicators remain in an unnerving pattern; one of the more intimidating trends I noted was a triumvirate blend of a strong dollar, positive gold movement, paired with creeping oil – I dare someone to place this scenario into sane context.

While January housing sales posted an increase, numbers also indicated a slight uptick in housing starts yet more bubbles await us. Significant commercial lending is coming due and as a result, many speculate more bank failures. Additionally, consumer spending remains tepid, no significant positive impact coming out of job creation, and European dept reflected in the so called “PIGS” - Portugal, Ireland, Greece and Spain, point to the potential for another significant economic slide.

Amidst the present state of falling in and out of economic consciousness, many have asked, how does this translate into the types of demolition/environmental work that are coming into our office?

Despondently, public bid work continues to outpace private-negotiated opportunities by a significant margin. Only 18% of all work we have bid so far in the first quarter could be characterized as private. To further indurate the situation is that the folks who are facilitating private deals are no longer entertaining one or two trusted companies to bid a job, we are often battling five to seven competitors for a “nice” deal.

Healthy margins are becoming more and more difficult to achieve yet we remain committed to aggressive positioning. Geographically, a national job order contract with a Fortune 500 company is creating environmental abatement opportunities across the United States. Positioning our company on these abatement jobs will allow demolition opportunities occur – operations are poised to meet these new prospects. We continue to aggressively market our “green” approach to demolition and have advanced new contacts visa via references.