Electical Contractor

Last month, we defined money and its relative value in the marketplace. This month, we’ll analyze who benefits when the value of money changes. Keep in mind that the laws of physics also apply to the value of money: what goes up must come down. Inflation

The National Electrical Contractors Association's standing policy on energy independence acknowledges the electrical industry’s important role in advancing economic stability and growth. It’s a fact proven through more than seven decades.

There is no question that we are in a severe bear market. From a record high of more than 14,164.53 on Oct. 9, 2007, the Dow Jones Industrial Average (DJIA) fell to 8,777.67 on Dec. 31, 2008.

The holidays are over, and you are facing a new calendar and a tough economy. When money is tight and the market is down, it’s time to look for waste. When you start a business, you are conscious of every purchase and monitor cash flow.

You probably spend 80 percent of your resources serving 20 percent of your customers. Sometimes, breaking up with your most difficult clients is the best way to improve employee morale and your bottom line.

Last month, we explored the first three steps of FRICTO, a framework for analyzing asset-financing alternatives. As a reminder, FRICTO is difficult to apply to privately held electrical contracting firms in its entirety, since it relies on market-driven stock price for some calculations.

Regardless of the economy's health or electrical contractors’ profit margins, lost assets must be replaced. There are several ways to obtain asset financing, such as incurring more debt in the form of loans or issuing shares of stock to raise capital from investors.

Ratios are useful as both snapshots and video clips. For example, the cash on your balance sheet is a snapshot of your bank balances at one point in time. By the time you generate your financial statements, the cash balance has shifted.

In 1989, the Occupational Safety and Health Administration (OSHA) issued voluntary guidelines for safety and health program management. The guidelines were based on the elements common to all programs used by successful participants of OSHA’s Voluntary Protection Program.