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Stacking of Trades for Electrical Contractors
As of August 31, 2015
Labor productivity is one of the most important factors that affect the profitability of contractors. Stacking of trades is one of the many influences that affect labor productivity. This research primarily concentrates on the effects stacking trades have on labor productivity. This chapter will address the connection between labor productivity and profit, definitions used in this research, problem statement for this research, purpose of this research, and the methodology used to study stacking of trades.
The construction industry is very competitive and profit margins are small and any mistake can be a company’s last (Adrian 1987). To reduce the risk of business failure, contractors would like to increase their profit margins. To increase a company’s profit a contractor may increase prices (revenue) or minimize costs. A contractor could attempt to raise his or her prices; however, with the high level of competition a contractor could be priced out of the market. The contractor is left with controlling costs as the only option in order to increase profits.
Format & Size:
Soft cover; vii and 55 pages
© 2002 ELECTRI International — The Foundation for Electrical Construction, Inc.
The electrical construction industry has relied heavily on expert opinion to perform critical decisions. The industry is experiencing shortages of skilled personnel in a competitive and ever shrinking labor market. As the labor markets are shrinking, electrical contractors are asked to perform more work at a faster pace than previously requested. As a result, labor productivity is one of the most important factors that affect a contractor’s profitability. There are many factors that affect labor productivity. This research focuses on the qualitative and quantitative aspects of stacking of trades in order to help contractors to create useful productivity monitoring systems.