The current trend of higher prices at the grocery store isn’t just affecting family budgets–restaurants are starting to feel the pinch, too. An industry that was already struggling, thanks to the recession, restaurants have been trying to slash prices and promote money-saving deals to pull in a regular crowd of customers and stay afloat. These tactics have worked, and most restaurants have actually seen a recent increase of clientele. Now restaurants are facing the difficult decision to not only cease these incentives, but raise their prices to keep up with inflating food costs, possibly undoing any gains they’ve recently achieved.
The primary foods shooting up in price are whole foods such as fruits, vegetables, meats, and flours. Naturally, these are common ingredients in many restaurant meals, leaving little wiggle room to substitute other ingredients or devise new recipes.
Causes of Price Increases
The cost of transporting foods from distributors to restaurants is soaring. The higher gas prices rise, the more restaurants will need to pay for their food supply. Poor weather has also driven up the prices. With higher demand and less produce to sell, farmers and suppliers must increase costs to stabilize their profits this season.
Creating Customer Loyalty
Developing customer loyalty could save a flailing restaurant when prices are forced upward. Regular customers will typically continue to patronize their favorite restaurants, even in the face of higher prices, so long as they continue to receive the customer service and quality food they are used to. Some restaurants have even posted fliers thanking regular customers for their loyalty, and apologizing for raising their prices.
Some restaurants will be forced to explore other options, rather than lose clientele with a price increase. This could mean switching suppliers or negotiating a lower price with their current ones. Some restaurants may look into purchasing more foods locally, to decrease transportation costs. Some switches can occur without the customers’ noticing a difference, but restaurants should be aware that the quality of their meals might fluctuate when switching suppliers.
Who’s Getting Hit
Two types of restaurants will likely be hit the hardest: small mom-and-pop stores, and chains that are already straining under significant debt. It is likely that bankruptcies and closed doors could be in the future for many of these struggling restaurants.
When you are faced with rising product cost, you are tasked with finding a way to offset these increases. You may be drawn to slightly reduce your food quality, but remember that this will not go over with regulars–or new customers for that matter. You can schedule as efficiently as possible or even reduce your hiring costs by partnering with a professional employment agency.
Rising Food Costs Could Force U.S. Restaurant Overhaul (Fox Business)
Higher Food Costs New Hurdle For Still Struggling Restaurants (Orange County Business Journal)
Technology presents the business world with new opportunities to add efficiency and increase cost effectiveness on a regular basis. Over the past couple of years, there has been a lot of growth in cloud-based software. For those of us who are not directly involved in IT, this concept might be a bit ambiguous. The best explanation you might have gotten to this point could have come from the recent Microsoft ad campaign directing consumers “To the cloud.”
What is Cloud Software
In its rawest form, cloud-based business software takes programs that handle everything from backing up data to the POS software that you use in a restaurant or retail establishment and allows it to live on the internet. Instead of buying a physical disk or CD ROM, uploading it to your computer and using it solely on the computers that you have uploaded it to, you can simply sign on to the internet. Then you direct yourself to the website that hosts the cloud software, and you can use the business tool without ever needing to hold a CD in your hand. Basically you accomplish the same business functions that you would with less hassle and some additional benefits.
Benefits of Using Cloud Based Software
- Get exactly what you need: Sometimes you buy a software package and only use half of the features, yet you paid for all of them. With cloud-based applications you only pay for what you use.
- Expand your access: With physical software, you can only use the tool on the computers you have downloaded it to. With cloud based software you can use it at your office, restaurant, construction site (basically wherever you work) and still have the freedom to check in from your smart phone or home computer when you are away from the workplace.
- Protect your data: Cloud software is managed by more IT professionals than most businesses can afford—or need—to keep on staff. This means that the information you store with them is regularly backed up (saved) in a secure place and that the software itself has IT gurus watching to make sure that hackers and viruses do not find their way into your business information.
- Stay current: You might be able to upload patches for your physical software if they are available and you remember. With cloud software, the company that operates it updates your business tools automatically, saving you time and giving you access to the newest technology.
Cloud software is one of the fastest growing sectors of the technology industry because it’s so useful for enterprise. It is just another way to save money and make your business better. If you are looking for ways to do this via staffing, we are always here for you.
Why a Web Based Point of Sale? (ShopKeep.com)
Cloud Based Software Sky High (Yahoo News)
The Different Types of Cloud Computing (DataPlex.com)
The term human resources was coined because that is exactly what your staff are: valuable resources that make your business work. Without people, most businesses would be filing for bankruptcy in no time. Effectively managing staff is one of the most important parts of any business model. Taking some tips on managing staff and personalities is a great way to improve your business with little or no financial investment.
Tips for Managing Staff
Your staff is comprised of different people, with different personalities who all share a goal when they come to work. The goal is to make your business as profitable as it can possibly be. By giving your employees the right tools, direction, and encouragement, you can make sure that you staff focuses as a team on the things that are important to your business.
- Be clear: Staff members need to know exactly what is expected of them when they come to work. They need to know “big picture” things like the overall goal of your business, any short-term goals or schedules, and more individualized information such as a well defined job description. Be straightforward and specific in your communications, so that individuals know what is expected of them and how they fit into the bigger picture.
- Be open: When a problem arises, it is usually a member of the staff, not the management team, who finds out about it first. An open communication policy will make it easier for your staff to report the issue so it can be solved. It will also make it easier for employees to voice complaints that might improve the atmosphere and company culture or suggestions that can save time and money. The ability to take criticism constructively and to work through trouble with a level head are vital to an open communication policy. If your staff do not feel that they can talk to you, they probably won’t.
- Allow autonomy: Certainly you will have policies and structures that everyone on your staff must follow in order for business to be done smoothly. It does not matter if you need staff for a construction project or a catering company, this fact holds true. But whenever possible, it is best to let staff take control of their work and choose ways to do it that best suit their preferences. For instance, every dish washer must follow sanitation standards, but if you micromanage to the point that you are telling them which angle to spray the dishes from, you are too involved. Let people have some freedom in their efforts, and it will pay off.
- Point out the positive: Do not hesitate to tell a staff member who has done well that you are pleased with his work. People need to know that they are appreciated; this is just as true for management as it is for labor. Remember that people work for you, not just nameless employees, and that people respond well to encouragement.
- Train, train, train: Training can be expensive and seem like a waste of time, but it is vital. Without proper training, staff will not be aware of the nuances of your business. This will become glaringly obvious when you review negative customer feedback–and it will be no one’s fault but your own.
Managing staff is one of those things that sounds easier than it is. You have clearly defined business needs, taken in combination with different personalities and personal values. All of these things must work together towards the highest possible profit margin you can achieve. We practice what we preach here at Labor Systems and are open, honest and encouraging with our administrative staff as well as our temps. We would be happy to go over the options you have at your disposal when it comes to temporary staffing in Arizona. We have offices throughout the state, making one stop shopping possible for your staffing needs in Phoenix, Bullhead City, and Apache Junction, among our other locations.
10 Ways to Manage Creative Personalities; Bright Hub
As business people, we must constantly be concerned about the economy. We must take reports from activity in the recent past and combine it with projections for the future, stir in a grain of salt, and use the product to help shape our decision making. To make sure that we are all as informed as possible, we want to dedicate this week’s blog post to an update on the state of the economy.
The National Economic Outlook
On a national scale, things seem to be coming together very well from an economic standpoint. The National Association for Business Economics released some figures from a survey that polled economists and business people throughout our nation. The results predict that gross domestic product (the sum of the value of all products and services produced within a nation’s borders within a given year) will increase 3.3% this year versus 2010. While that seems like a small figure, realize that it represents billions of dollars that will be produced by business people and distributed out via payroll and taxes before the cycle starts over again. Let’s review some of the recent events and possible future happenings that will fuel this growth in GDP.
- Last month service industries throughout the U.S. expanded at the fastest rate since 2005!
- Retailers such as J.C. Penney and Macy’s experienced same-store sales growth in February 2011, which beat out most analysts’ predictions for those sectors of retail merchants. This indicates increased consumer confidence and disposable income, which is good regardless of which products/services you sell.
- Growth in labor markets was evidenced by both fewer unemployment claims and projections showing growth in employer payrolls.
- Local Tempe, Arizona-based supply management association ISM reported that manufacturing in February 2011 grew at the most rapid pace that it has since May of 2004.
Economic Outlook Here in the Grand Canyon State
For business owners and managers in Flagstaff and Tucson, we are primarily concerned with the local economic outlook. Obviously the national news gives us reason to be optimistic, but local factors will affect our bottom lines first. Some recent legislation from our state legislature and governor will bring some very business-friendly changes.
- Beginning in 2014, the corporate tax rate (state tax not federal) will begin to be reduced over a three-year period, until it is 5%. This change from the current 7% rate means that a substantial amount of your profits will stay in your possession.
- Industrial and commercial property taxes are set to drop a touch. The current assessment ratio (a figure combined with the face-value appraisal of a property to determine tax rate) of 20% will decrease to 18% between 2013 and 2017, saving property owners on taxes and possibly giving business owners more leeway to negotiate reduced rent.
- Some tax relief is also on the way for some Arizona-based manufacturers. Right now you pay a higher tax rate if you manufacture a product in Arizona but sell it in another state. Over the next few years, this taxation penalty will be reduced (not entirely yet still reduced), making life a bit easier for those who make the products that people need.
With a brighter national and state outlook, it appears that there are promising things in store for the Arizona business community. We are in the beginning stages of a period of growth, according to all sides. With growth comes the need for additional staff to fill your orders and please your customers. The recent economic conditions have taught us to err on the side of caution. The best way to do that from an employment standpoint is to hire slowly and use temporary labor. This gives you a chance to ensure that you really do need new staff and even try out new employees before you hire them.
Before you bring on a new staff member, you want to know as much as possible about the candidate. Past experiences, not solely work experiences, have a profound effect on who prospects are and how they will perform their role in your business. An interview or two can give you a good idea of who a candidate is, but many employers want to know a little more. Are there any important details that the applicant might have left out of the interview or their resume? A background check can be a great way to find out and verify that the person you are considering is on the up and up. You don’t necessarily have to eliminate candidates based upon what you find, but you do want to know as much as possible before you offer them a position.
What to Look For
You can use an independent supplier to collect background information on your candidates and supply you with a total picture, or you can look for individual pieces of information on your own. Deciding what you want to know in advance will help you decide whether to look yourself or hire a company to conduct your background checks.
- Credit scores: Some employers do in fact look up the credit scores of the applicants. This can tell you a little about their ability to handle finances and let you see what they have been up to. If you collect this data, you must have the applicants’ written permission in advance. Also keep in mind that if you use your findings to make a hiring decision, you must share the report with the applicant and explain how it led you to your decision.
- Criminal background checks: This is the most popular form of background check for employers. You may still hire someone with a criminal record, but for the integrity of your hiring process and the safety of your staff you want to know whether an applicant has been into trouble with the law and to what extent. Criminal history is generally a public record. Here in Arizona, employers and candidates can request both a background check and a fingerprint clearance card (for positions that require considerable security) from the Arizona Department of Public Safety. This includes only crimes committed in Arizona, so be sure to have a national criminal background check performed if you want a full picture.
- Medical records: You might be tempted to look into these, but be advised that federal regulations state that you can ask only whether a candidate can reasonably perform required job functions and cannot ask for medical records. In general it is best to avoid the potential liability—yes you can be sued by someone you do not hire—that is associated with asking for this type of information.
- Military or school records: If an applicant says he went to a particular university or has military experience, this might set the applicant apart from the pack. You will want to find out for sure, but know in advance that you will need to request transcripts from the applicants themselves. Let them know why you want the information and consider having them sign a document that states in legal terms how the information will be used and that they consent to your having it. Most often you cannot get much more information than name, rank/major and other general pieces of information from the military or a particular school. If you want information on GPA, commendations, or anything like that you will need your applicant to provide it.
With any and all information you collect via a background check you must consider privacy issues This is sensitive information and if it is leaked, even internally, you as the employer can end up in hot water. Make sure that background check information is limited to “need to know” personnel and never the subject of conversation outside of these circles. Background checks are common parts of the hiring process. They can be time consuming and usually have little to do with your core business functions. If you want to save time and alleviate the trouble associated with background checks or other compliance issues pertinent to hiring, we would be happy to help. Labor Systems Job Center can supply employees on a part time, temporary or direct hire basis and as always you can try out a staff member before making a firm decision.
As an employer, you probably receive cold calls and walk-in visits from insurance salespeople on a regular basis. When they show up at inopportune times, you likely shoo them away so as to focus on the task at hand. Do you ever find yourself wanting to know a little bit more about insurance later? Most of us do, so today we are going to cover some of the types of insurance that an employer can offer their employees in Arizona and delve into the finer points of some of the health-related coverage options.
Types of Insurance
There are many types of insurance that you can offer.
- Employer-sponsored disability insurance: Covering staff for the potential that they become disabled via an accident, disease or other occurrence is one option for employers here in Arizona. While employees can take out disability policies on their own, this option is offered by you, the employer, and generally costs the employee less than more independent options. You will foot some of the bill yourself, but making this a part of your overall insurance benefits package means that employees who become disabled will be paid a portion of their salary to help them get by. Employees have less wiggle room when it comes to suing the insurance carrier as compared to independent forms of disability insurance, but the difference can arguably be made up in financial savings.
- Workers’ compensation: This type of coverage kicks in when an employee is injured on the job or as a result of something they encountered at the workplace. You are required to carry workers’ compensation insurance as an employer. For a full report on this type of insurance, refer to our blog specifically on the topic.
- Health insurance: This type of insurance can come in many forms. In fact, disability insurance is considered to be one form of health insurance, as many policies will cover medical care related to the disability in question. There are different kinds of policies, from Preferred Provider Organizations (PPO) to Health Care Services Organization (HCSO). Going over the different types requires several blog entries. For now we will reinforce that employer-provided health insurance generally costs both the employer and the employee on a monthly basis and covers medical expenses to varying extents, depending upon insurance provider and policy type. Some of the things that you might not think to be coverage requirements include the following:
- If your policies include diabetes care, then they must include coverage for necessary equipment, from syringes to the insulin itself.
- All policies must cover mammograms for female employees of required age.
- If you policy provides maternity benefits, these benefits must be offered to the natural mother of an employee’s adopted child for one year after the birth of the adopted child.
- All policies must cover screenings in an emergency room, as well as ambulance transports to the emergency room.
- All policies that cover prescription medications must also cover FDA-approved contraceptive drugs and/or devices.
Combing through health-related insurance policies is best done with a qualified and valid insurance salesperson. The state of Arizona does warn that individual consumers as well as employers looking to purchase group policies should be aware of insurance scams and fake insurers. For more information on avoiding dishonest insurers, visit the Arizona Department of Insurance for some sound advice. If you do not have time to devote to insurance but are in need of staff at a moment’s notice, then finding out more about the services offered by Labor Systems Job Center can get you the staff you are looking for without any hassle.
Running a business requires organization maintenance. One important but easily overlooked factor within any work environment is cleaning. No, not tidying up the books, but actually cleaning the areas where you and your staff get your job done. For businesses in the restaurant industry, health standards dictate that cleaning must be done daily, but who should be doing it?
Basically, you have two choices: your staff or an outside contractor. To many, having staff members clean the workplace seems like a no brainer. Workers can devote what seems like a little bit of their time to tidying up, or outright scrubbing (depending upon your workplace), and money can be saved on a cleaning service. You know who to go to in the event that something is not cleaned to your standards, and you can avoid the fees charged by a cleaning service or staffing company. But have you really fully evaluated the costs versus the benefits of hiring a cleaning service? Tracking their charges is easy: you look at the bottom of the invoice. But can you track what you lose when you assign your staff to clean your space?
Outsourcing Is a Good Idea
Even if you break up the responsibility of cleaning an office or restaurant kitchen among multiple staff members, you might be losing out. If your staff is scrubbing a floor or cleaning a bathroom, they aren’t calling on customers, making sure paperwork gets filed correctly, or even getting extra prep work done for the busy weekend you have coming up. This means you are either not getting your core tasks completed or risking paying overtime so your staff can finish both their jobs and the cleaning.
Additionally, you might be hurting morale. People who apply to work in one position do not want to be told that they are also the cleaning crew. Even in the restaurant industry where getting your hands dirty is expected, cleaning bathrooms is not. Making staff break from their core job functions and clean will cause some employees to feel degraded, even bitter. Once this happens, you can expect a shoddy cleaning job followed by some poorly performed core job functions. All of these negative factors can be avoided by contacting a cleaning service or better yet, a competent staffing company that can provide staff to clean on a scheduled basis.
If you outsource the cleaning, you help your business stay focused. When employees have to work in several different aspects of the business, they tend to produce less quality work. It is not because they are lazy or do not care, but if a person has to shift focuses multiple times per day, it becomes hard to get into a groove and concentrate on being successful. You might be losing out on some creative ideas and extra attention to detail if you decide to have your staff come off task at certain times of the week in order to clean.
This argument works for literally every industry. It is better to have employees focused on a particular set of tasks. Cooks should worry about cooking and maintaining a clean workstation, and mail room clerks should be on top of properly distributing mail and delivering messages. It might seem like a good idea to reassign a lower-level employee to cleaning, but in the end it is almost always a bad one. Once you realize how cost effective outsourcing can be, especially in combination with better morale and productivity of your core staff, you will see that it is actually an investment that pays out.
Thinking about hiring a couple of high school kids to fill some part-time positions for you? For some businesses that makes sense; some positions that need to be filled carry a relatively low level of responsibility and autonomy. These positions also only need to be filled part time and might even warrant slightly lower wages than some of your more technical positions. This position might be a hostess or a busser at a restaurant or even someone who hands out fliers for an income tax operation that is about to see an influx of business. A minor might make sense for your open position. If so, you must be aware of some of the child labor laws that we are subject to here in Arizona.
Child labor represents one of the few areas of employment regulation that is subject to oversight from both the federal government and the Industrial Commission of Arizona (they do a lot of the work here in Arizona that OSHA does from a federal standpoint in other states). The Industrial Commission states that businesses are subject to two separate sets of laws. If these laws ever conflict, you must follow the stricter law. If one entity has a law or restriction pertinent to a particular topic but the other does not, then you must follow the guidelines of the agency that has the law. Basically it goes like this: if the Fed says that minors cannot work before 7:00 am (which they do for minors under 16) and the state says they cannot work before 6:00 am (which Arizona does), then you must follow the federal law because it is stricter than the state law. If the Fed didn’t restrict the hours that minors can work, but the state did, then you would be bound to follow the state law and would not be able to legally defend yourself by citing a lack of federal guidelines.
Facts You Need to Know
- Youth under 16 years of age cannot work more than 3 hours on a school day—if they are enrolled in school—while school is in session, or more than 8 hours per day on a non-school day. If they are enrolled in school, they cannot work more than 18 hours per week when school is in session.
- Youth under 16 years of age cannot work before 6:00 am or after 9:30 pm if they have school the next day. If they do not have school the next day, they are not permitted to work after 11:00 pm. Youth who are not enrolled in school cannot work before 6:00 am or after 11:00 pm.
- No youth under 16 can ever work more than 8 hours per day or 40 hours per week.
- Generally positions that require driving are not suitable for minors by law. The exception is that 16- and 17-year-olds can drive up to 2 hours per day or 25% of their shift (whichever is shorter), but cannot drive large vehicles.
- Youth cannot operate heavy machinery. There are a couple of exemptions, but it is advisable to think about your liability before ever considering actually doing this. This means that in most cases, manufacturing and construction position are not suitable for minors. Other restrictions speak specifically to youth not being allowed to work in positions such as roofing and demolition.
- Parental permission is not needed in order to employ youth. Meanwhile parental permission, even in writing, does not allow you operate outside of regulations.
- You must verify the age of youth who are applying for a position with you. It is not considered age discrimination to ask youth their age. Age discrimination applies to 40- to 70-year-old applicants.
- You can, and will, be fined for violations of these labor laws that are brought to the attention of either regulating body. The state dictates that the maximum financial penalty that can be assessed is $1,000.00 per infraction. You can of course contest a fine as long as you do it within 20 days of issuance.
There are Some Loopholes
- If the minor is involved in or has completed a career education or vocational/technical training program recognized by the Department of Education pursuant to Title 15, Chapter 7, Article 5, the minor is exempt to some of the restrictions. Construction and manufacturing-based employers may be able to use this parameter when employing minors.
- You may also be able to work around regulation if the minor is in an apprenticeship program approved by the Bureau of Apprenticeship and Training. This might allow youth to work on a construction site in a limited capacity, and at the very least it helps to limit your liability.
Did that sound like a lot of rules? Compared to the actual set of regulations that is just the tip of the iceberg.
For more Federal guidelines click here to review more laws to make sure you are in compliance.
To brush up on Arizona’s additions, you can visit the Industrial Commission’s website.
If you would rather skip the headaches associated with all of these rules, contact Labor Systems Job Center and we will work with you to send over the right workers who will solve your staffing problems on a part-time or full-time basis. We can meet your needs throughout Arizona from Tucson to Kingman.
At Labor Systems Job Center we work diligently to take as many potential compliance and regulatory issues off of the hands of employers as is humanly possible. As many employment-related compliance issues as we can handle for you, we are unfortunately unable to address every piece of regulation on your behalf.
Our partners who operate in the hospitality industry know that any business that serves food is subject to regulation by the Office of Food Safety and Environmental Safety. This governing body inspects and certifies that restaurants and other establishments that serve food and drink adhere to sanitation standards, which ensure that their customers are safe from foodborne illness.
If you would like a comprehensive view of these regulations, they are kind enough to provide a PDF which details standards and compliance issues. If you are running a business and limited on time we will refresh you on some of the main points of compliance.
Compliance Issues Related to Food Safety in Arizona
- Accountability- Your business will need a “Person in Charge” who has been certified by the state. This person–you or a manager–is responsible for knowing all aspects of food safety, from proper storage, to the right food handling techniques, to appropriate employee hygiene. Technically someone with this distinction must be present during all business hours to oversee your staff and operations as they relate to food safety.
- Employee management- This is where prepared temps can really pay off. Your “Person in Charge” is responsible for overseeing the staff and how they interact with food. Technically your staff must be forthcoming about any injuries or illnesses that they suffer from before you can allow them to work around food. Your “Person in Charge” is also responsible for verifying that your staff maintains acceptable levels of personal hygiene both in preparation for and during their shift.
- Storage- Food storage is extremely important. Not only must particular foods be stored on particular shelves (no vegetables below raw meat of course), but you must also label the packages according to food type, date, etc. Food packaging is also an issue, as anything in a tainted or otherwise damaged package must be noted and removed from food storage and obviously not served to customers.
- Contamination- Bacteria spreads fairly easily and invisibly. You are responsible for stopping the spread of bacteria and containing any potential outbreaks through proactive actions and educating your staff. The state breaks down sources of contamination as follows:
- Contamination from hands
- Contamination from tasting
- Contamination while separating, packaging and segregating food products
- Contamination from ice– including proper ice machine setup and drainage
- Contamination from lack of washing (mostly vegetables)
- Contamination from equipment, utensils and linens–you will need to know the different standards and uses for utensils made from different materials as well as proper dishwasher maintenance.
- Contamination by consumer (This applies to food products used as a display and to buffet situations.)
- Presentation- Your health inspector also wants to verify “food shall be offered for human consumption in a way does not mislead or misinform the consumer.” This means that coloring or wraps cannot be used to change the appearance of food and that verbiage is plain and understandable.
- Verbiage- When presenting food to guests, you must use plain and common names to identify the food products. You must also include reminders about food that may be served undercooked or raw and the dangers that might accompany such food.
Being in compliance with the state is not only good for your guests, but necessary to keep your license. We realize that these issues keep you busy on a day to day basis. If you need some more time to cover these compliance issues and are in need of additional staff, visit Labor Systems online to see how we can help you.
The opinion of many economists and business leaders in Arizona seems to be that this year marks a year of economic re-growth. It definitely will not happen overnight, but there should be definable improvements for everyone. The construction industry deserves attention when talking about an improving economy because they have felt the harsh effects of the recession as much or more than anyone else. Building development characterized the economic boom that led up to the recession, and trouble in the real estate markets were the first factors cited when the recession was being defined.
Tens of thousands of workers in Arizona depend upon a healthy real estate market to make a living. What opportunities await this hard working segment of our state economy in 2011?
Optimism in 2011
- Commercial Sector- A recent post by the Phoenix Business Journal cites commercial property as a real opportunity for construction companies in 2011. Favorable corporate tax rates and competitively priced leases are making Phoenix–and other cities in Arizona–a location that cannot be ignored by large businesses. Arizona is geographically located in the West but comes without the price tag that many of our neighboring states have, making Arizona a formidable West Coast distribution point or headquarters. While there probably won’t be a lot of bids taken for new construction next year, you would be advised to look out for all of the remodeling work that will be out there. When large companies move in, they will need offices and manufacturing facilities redesigned to suit their needs. Commercial build-outs should keep a lot of contractors afloat in 2011.
- Home Segment- Opinions are mixed, but many in the real estate market are predicting 2-3% increases in home values in most states, not just Arizona, next year. As this happens people will begin to have a little more faith in the economy and likely some extra disposable income to go with it. Again, new development is less than likely, but contractors will again have the opportunity to get into the renovation market. Many people will probably stay in their homes longer from here on out, making remodeling a very enticing prospect for consumers so long as they can get a line of credit for the renovations.
Coaxing businesses from other states will be instrumental in an upturn for the building industry statewide in Arizona. New companies mean more work, not just for the construction industry, but for everyone else as well, once the local economy starts to churn a little faster. With thoughtful decisions and a focus on growth, 2011 should be a better year for employers from Tucson to Tempe.