The survey suggests that only 2% of contractors are responding to the new competitors by closing their doors or selling. That percentage is expected to double in the next five years. Nearly 80% of those polled believe that most of their current competition comes from small independent firms. Of that same 80%, only half believe that small companies will still be their major competition in 2002, just five years from now. 55% acknowledge the utility competition, but they don't believe it to be a factor in their local market. When asked to project that utility competition five years hence, only 37% believe it still would not be a factor.
In the North Central states, about 9% of those polled said that they face the utility threat today. Projecting five years out, 21% believe utilities will be their major competition. Statistically, companies in the Northeast and Southern states are most likely to form partnership agreements with the utilities.
Numerous contractors on the West coast are looking at the possibility of being bought out by consolidators. They are also leading the country in forming alliances to the major retailers. Over 50% of all those surveyed said that they now offer a wider range of services than they did only five years ago.
There is a great deal of movement across the board in the contracting business today. You must get wise to all of the changes or suffer the same fate as countless businesses that failed to progress with their industries in the past.
Trenchless companies break new ground
The trenchless branch of our industry has made some amazing advances in 1997. The record length for boring and pipe placement is approaching 600 linear feet. They can run pipe at practically any depth, can bore 4ft diameter holes through solid rock and traverse underneath rivers with new pipeline systems, all without trenching. In a straight run, they dig a work pit at the top of the run and another pit at the point of termination. Then it's just a matter of connecting the dots. I have read numerous articles that claim that clay pipe is the best to use and the longest lasting material. I guess those proponents haven't done much work in earthquake areas. The camera systems that trenchless companies utilize are akin to what you would see with a municipal application. Sophisticated, tractor driven cameras with pan and tilt capabilities are the usual tools. These folks can slipline a city sewer main between two manholes [about 300 ft] in just a few hours — again, no street trenching. When a main is sliplined, the lateral inlets are blocked by the new liners. Special cameras with robotic drilling attachments are re-inserted into the manholes and advanced to the now blocked inlets along the main line. The arm reaches out and trims a hole in the liner so incoming flow from laterals is restored.
Lateral repairs may or may not be the responsibility of the property owner, depending on local municipalities. So, the trenchless companies are looking for ways to inspect laterals easily. Guess what? Small camera systems that are mostly used by plumbing and drain cleaning companies are about to make a big splash in the trenchless industry.
Looking to the future
Keep your ears close to the ground. There are so many things going on that they just can not be ignored. With every change, a new opportunity awaits those who can adapt to a rapidly changing industry. Gather all of the information you can, read between the lines and implement business strategies that intercept the current trends in the marketplace. To be a leader in the industry, you must stay one step ahead of the pack. Be an innovator, be a creator, be a leader and be the very best at whatever you do!

Peter Morici
"Plumbers Protect The Health Of The World."