In our present economy most industries are, or have experienced changing methods to reach changing markets. These method changes seem to always start with cutbacks, and the largest area seeing cutbacks are (of course) employees, quickly followed by systems and locations. At least for me and the industry for which I belong, this is what I have seen to be the natural progression. The companies I have worked for have all first cut employees, second reduced systems such as mobile, management, internet, etc., and finally, reduced the size of their office locations, all while operating their business with a more hands on approach by the owners. In my view, I see a real opportunity for innovation due to this process and the ultimate need of assistance to continue doing buisness.
Outlook
As for the market in the construction industy, the outlook is getting better and better each day (in my view). Investors are setting 2010 goals to increase production and properties are starting to sell and lease once again. We are seeing increased project starts and halted projects swinging back into action. Of course this is relative to where you are in the country, but I am seeing companies that are actually back in production and somehow getting money from lenders to produce their products. This to me is very promising for new, innovative solutions. The cutbacks and changes in methods pave the way for new solutions to approach the affected markets and companies targeting those markets.
Those affected by Cutbacks
I have often wondered, what the individuals in the construction industry that were let go are doing now and how are existing support companies doing? I have started looking into some of these people/companies and found some interesting results that might support this theory of industry mashup’s and changes in strategy.
Individuals
In my years in construction industry,I have crossed paths with many, some I am still in contact with and some I have lost track of. But of those that were working for companies and were let go into the world of uncertainty and unemployment, many have entered new industry’s or directions, while the more ambitious types have rose to the surface with innovative concepts and starts. I have researched a few of these individuals and found that their new (still construction industry) ventures are somehow integrating other areas of industry into their service or product and are now starting to gain speed with their new concepts.
Support Companies
The support companies of which I am referring to are mostly estimating companies, IT services and marketing consultants. Of the few groups I have looked into all have seen increased projects and business after the economic issues. I believe this is due to builders need and utilization of outsourced services for the voids left by cutbacks in both departments and employees. The last company I worked for I did most of the interoffice IT, as well as purchasing, project management and estimating. This company is now using the outsourced services of companies in all three areas of IT, Estimating and some Management of specific areas of their projects. This i think also supports the thought that changes in strategy are iminent and could create a market for mashups of Industry.
Industry Mashup
The deffinition of Mashup relating to web development, provided by Wikipedia is: In web development, a mashup is a web page or application that combines data or functionality from two or more external sources to create a new service. This definition relating to industry is interesting due to the one stop, multi industry offering it can bring to the table for the companies that have cut back in all areas and departments of their business. Due to the cutbacks and changes in methods, I believe going back to “business as usual” is not only infeasible, but would be irresponsible. The markets and industries have changed and now require new solutions for doing business. I can say for me to go back to working for a construction company as a project manager would be great, but I would feel very insecure and unsure of where I would end up due to the bad taste in my mouth from the past. I personally want to create my own path and maybe have a say in my future and security and I see a wonderful opportunity to do that now. Without giving away to much of the what I am working on, I would ask,
What would be a mashup in your industry that would approach this new market with a innovative set of solutions?
