Don’t use the “R” word in our office, we’re not participating. “”But it’s there in business periodicals, the local business section, the national news, the Wall Street Journal and every time a presidential candidate opens his or her mouth. Where can you go to escape the “R” word?
At Harmon Construction Co., we’re not participating in the slow down, sluggish economy or a recession (oops, it slipped out). It’s a self-fulfilling prophecy, the more you talk about it, the more it takes on a life of its own and becomes a reality.
I had a recent conversation around the “water cooler” with Phil Crafton, vice president of sales/marketing, that centered on the economy and Harmon Construction. Last year, we set a record for sales, up more than 50 percent from 2007 – the best in company history. I asked about Phil’s projection for 2008.
“It’s going to be better; much better,” he said, “We’re off to a good start.”
This reinforced my idea of “we’re bullish on 2008 and beyond.”
In my mailbox was a copy of the market research commercial real estate report for Kansas City: A Look Back to 2007 and the 2008 Forecast. Colliers Turley Martin and Tucker Commercial Real Estate Services publish this invaluable resource.
According to the report, “The Kansas City Economy has areas of notable strength. K.C. is at the heart of the agricultural industry, which is currently strong. It’s a major center for the animal health industry. K.C. has a growing bioscience community, and the area is growing in size and stature as a distribution hub.”
Does this economic expansion that we are experiencing reach beyond the Kansas City metropolitan area? Are the other regions of our country slowing down and slipping closer to the edge of the “R” word? Will Kansas City finally run out of steam and follow the path of other major cities that appear to be suffering from “economic contractions”? My family's annual spring break pilgrimage began this spring in south Johnson County and ended on the beaches in Destin, Fla. We always drive, and this year was no exception. As we were traveling down the interstates, state highways and backroads of seven different states in, we discovered much about the “economic conditions” of these regions of the country.
My observations didn't include any surveys, personal interviews or visits with the economic development people in these areas. Nonetheless, I was pleasantly surprised by my findings. I expected to experience a totally different economic outlook. One that would validate that our hometown of Kansas City is an aberration and that eventually we would find ourselves in a similar predicament with an economy heading south (no pun intended).
What are some key steps to prospering in a down economy?
Communicate the good news and not so good news to your employees.
Engage your team in solutions to challenges. Reward innovative ideas.
Don’t panic. Develop a plan and be flexible.
Celebrate successes, both large and small.
Keep the powder dry. Cash flow drives the business through uncharted waters.
Tim Harmon is president of Harmon Construction Co.,, a mid-sized design/build, general contracting and construction management firm specializing in commercial and religious construction. Harmon Construction believes in “building relationships before buildings.” You can reach Tim at or (913) 962-5888.
