Commercial Truths in New Mexico
One of the largest industries in New Mexico is commercial construction. In 2015, construction contributed $3 billion (3.7%) of the state’s GDP of $92 billion. Thus, construction’s contribution to GDP in the state was less than the industry’s 4.0% share of U.S. GDP. Construction wages and salaries in 2015 totaled $381 billion in the United States, including $2.0 billion in New Mexico, according to the Associated General Contractors of America. (Simonson, 9/19/16).
Commercial Construction Sustainability Tactics during a Flat Economy
For GranCor Enterprises, we recognize the flat growth the commercial construction industry faces and the impact on our economy. However, we remain optimistic. There are several positive things happening in New Mexico, which leads us to believe the industry will see growth over the course of the next several years. The oil and gas industry is believed to have bottomed out and has slowly begun adding rigs in the New Mexico portion of Permian Basin, according to Oilprice.com (U.S. Rig Count Rises to 7-Month High Calcuttawala, 9/30/16). In addition, tourism and continues to fuel the state’s job growth.
“One in 12 New Mexico jobs, 89,000 total, are sustained by visitor spending," said Rebecca Latham, cabinet secretary for the New Mexico Tourism Department. "Tourism is leading job growth in New Mexico and national recognition like this [Referring to a travel-guide company list published by Lonely Planet] goes far in keeping the momentum going."
During flat or slow times, it’s important for contractors to “zoom out” and assess their operations to ensure economic-adaptability to sustain operations and support organizational growth. At GranCor Enterprises, one way we’ve done this is by offering pre-engineered metal building systems services to our clients. These systems come designed to expedite speed to market, cost savings and boost efficiency to extend the life of the building.
Utilizing Local Talent
Another way we’ve worked to “zoom out” and utilize the resources within our state is by hiring local. As a minority, woman-owned company, GranCor Enterprises, focuses on providing jobs to New Mexicans with a competitive salary/wage. According to the Associated General Contractors of America, construction employment in New Mexico in July 2016 totaled 43,700, an increase of 0.9% from July 2015 and a 27% decrease from the state’s peak in June 2006. GranCor has ridden this tide with as many as 120 employees during busy months and as little as 26 during slow months. Our teams are built to maximize local talent while being practical with the current workload.
Roll Up Your Sleeves and Put on Your Thinking Cap
Although commercial construction may be perceived as a “cutthroat” industry, it’s much more than that. It’s a roll up your sleeves and gets to work atmosphere. Since 2004, we’ve worked to do just that, and we’re proud to be a New Mexico small business. New Mexico is a good ‘ole boy state, where everyone knows everyone and success is a product of forward-thinking, strategic planning and lots of hard work.
In 2013, New Mexico had 4,300 construction firms of which 90% were small. In 2014, the United States had 667, 1000 construction firms of which 92% employed fewer than 20 workers. (Associated General Contractors of America. Simonson, 9/19/16). There is something special to be said about that because it’s not every day the owner of a business is accessible, but in New Mexico and especially at GranCor, the owner is accessible and willing to provide a solution-driven approach to a complex problem.
Despite difficulties with a challenging economy, the outlook for the commercial construction industry in New Mexico looks promising. One thing contractors must do to maximize resources is hire local and be prepared to adjust to current economic conditions. GranCor Enterprises is proud to be a woman-owned commercial construction company working to utilize local talent by rolling up our sleeves to get the job done right.
About GranCor Enterprises
GranCor Enterprises, Inc. is a minority, woman-owned company specializing in full construction services including building construction, demolition, recycling and an environmental division which includes lead/asbestos remediation services. Yes, we are much, much more than just a construction company.
Since 2004, GranCor Enterprises, Inc. has completed more than 2,400 construction and environmental projects in New Mexico, Arizona, Texas, Oklahoma, Nevada, Arkansas, Alabama, and Louisiana. GranCor provides general contracting, construction management, program management, design/build services, pre-engineered metal building manufacturing and environmental remediation services.