The GC (General Contractor) BOOM is upon us. Soon everyone will be a GC

We've seen this before. Don't miss out!

If I base my thinking solely on the roofing company that I hired to replace my roof. I understand it is a small sampling but I would like to use it more as a metaphor. The employment numbers that the government is feeding us must be more wrong (moron) than I originally anticipated. If we take this small sampling of Vietnamese men, I can can easily derive that our employment numbers are understated. The underground economy is bigly and it is about to get huuuuuuuge.

As the residential resale market screeches to a halt and the New Home Developers smash the brakes like they were hitting my “Subscribe now” button,

we are left with what the stats consider a balanced market in The GTA. The ones in control of the supply are simply saying

“I’ll just wait this out. Things will pick back up again soon. Our balance sheets are strong. We have a lot of money. ”

What I am also seeing is that the contractors are starting to realize that their pipelines are nowhere near as full as they used to be. It’s sales time. I’m guessing that there must also be many people that have already or are seriously considering cancelling their renovation projects now, or at the very least, wondering if they can delay it for a little while longer. Thanking their lucky stars that the contractor was too busy too start a few months ago.

On the flip side many, many others have been sitting on piles of cash waiting desperately for their contractors to start and many more newly minted millionaires are now contemplating new renovations because they are now “stuck” in their homes.

As the work dries up in subdivisions and on high-rise construction sites, the labour needs somewhere to go. They are highly skilled individuals you know. What happens next is that we get the perfect storm for the formation of many, many new horribly run and disgracefully managed General Contracting businesses.

Believe it or not but this is actually the perfect time to start a construction company. There will be some great labour available with some big aspirations.

“Do you do roofing?”

“You’re God damn right I do! “ and voila, we have a new roofing company.

“While you’re here, I was just wondering if you or anyone you know does painting? “

“You’re God damn right I do! “ and voila ,we now have a General Contractor.

If we are lucky they are smart enough to incorporate a company. Most do not.

If we are lucky they have a contractors license from the city. Most do not.

If we are lucky they have their W.S.I.B. certification. WTF is that bro?

Tarion. Don’t make me laugh.

Sign up for QuickBooks.

A little vinyl on the side of the truck with a cute name and boom we are in business.

It really happens just like this. Everyone needs some form of work done. If they don’t, they most certainly know someone who does and everyone loves to tell you that they know a “great” General contractor.

I have seen this before. I have been this before.

When people want to move and can’t for to for whatever reason, it generally has left them in spend mode. They were likely about to upgrade to a better home. Most likely quite disappointed at the wonderful life they had envisioned simply vanishing away like the rest of their god damn dreams.

“Listen Daniel, if we are going to be stuck in this shit hole, we sure as shit are going to be renovating the kitchen.”

“yes dear”

And just like that we need many tradesmen and “licensed” contractors for this project. But it doesn’t stop here.

On many job-sites, this conversation is happening…..

“Hey guys, if I can line us up some renovation work, are you in?”

“But we barely know how to pour concrete and work with rebar?”

“I just got here bra. I dont know how to do renowations mang.”

“We will figure it out guys! We are going to be rich!!!”

While inside many households, this conversation is happening…….

“If we cant move, then we need to update the Kitchen, the washrooms and the laundry room. We also need to paint and redo the floors and it would be nice if we could open up this wall. “

I promise you that this leads to:

-Painting the entire house

-Removing the popcorn ceilings

-redoing the staircase

-new pickets and railings

It may also lead to:

-new garage doors

-new built in cabinetry

-built in closets

-new roof

-landscaping

You can see how this will snowball. And it does. And it is.

If you do a half decent job your friends and clients will start giving out your number because “it’s cool” to know a good contractor. It is also a very easy way to sneak into every conversation that you are having work done to your home.

I’ll bet that we start seeing some government incentive programs that help homeowners with the costs of boosting their homes energy star ratings and subsidize things like, new windows and doors, new roof insulation, new insulation in the walls, new more efficient furnaces and air conditioning systems.

Next thing you know all of the labour from new construction comes back to the city for the renovation work.

If you think we have a labour shortage now in the new home construction industry, with our 252 cranes in the sky and thousands more housing being built without the use of cranes. Imagine how short we will be when the new construction cycle revs back up again and the new GC’s are driving around in they’re Aventadors and subbing out everything to guys who go by the name Conrad, but it is quite obvious that his name is not really Conrad.

TBH with you I am also very seriously considering starting up a new roofing business with a guy named Conrad and my wife would really fucking love that Aventador.

Stay tuned.

Oy vey!