Should I Specialize?

Although many don’t realize it, the second most common question in any professional’s mind(right after, ”Should I get into this business”) is, “Should I specialize?” Granted, it doesn’t pop into someone’s head that way, but most, at some point when they are starting out wonder if there is an area that they want to focus on or a group that they would like to focus on. Construction is no different. There are contractors that focus on roofing, framing, painting, electrical, etc. because they enjoy that aspect of the business.

This, in turn, brings up another question. Can I make it as a specialist? To answer that, let’s turn to the medical industry. When you are just generally sick and go to your General Practitioner, he charges a certain amount for a fee; enough to cover his expenses such as rent on the building, paying the RN and receptionist, and keeping the lights on. He usually has a fairly large office with multiple rooms and a waiting area.

A specialist, on the other hand, rarely works in a large space. More often than not, he has a small consulting office and one or two treatment rooms and although his working space is minor, his fee is usually pretty hefty. He may have a receptionist and assistant to pay, but his electricity bill is only a fraction of the GP’s.

How does this translate into the construction industry? For starters, when a contractor decides to specialize, they are seen as more of an expert than a general contractor. Potential clients, when searching for roof repair or replacement, will Google “Roofer” first and general contractor last. The specialist is more likely to be hired for a specific task where a general contractor will be called on for a full remodel or build. Does this mean that a specialist is losing business for remodels and new builds? Not really. The general population wants someone who is more of an expert in their field to do the work and will pay extra for it.

A specialist also has less overhead than a general contractor. A GC must keep on hand or be able to rent a wide range of equipment that may or may not be used on a job. This means money spent on maintenance, storage, and repairs on a piece that may only see use during a certain time of year or for a specific type of job. The specialist, on the other hand, will own equipment that is used on just about every project; tools that earn their keep every day. A specialist can also save money in labor since his workforce is a smaller group that are specialists themselves. Very few concrete companies keep an electrician permanently on staff. A GC has to keep someone from every construction discipline on hand in case they are needed, usually multiple people.

Are there any downsides? A few. It can be hard for a specialist to get work during the “off-season” depending on what area he specialized in. An HVAC company can have work year-round where a framer may have to wait days or weeks for the weather to allow him to work. Specialists also find it necessary to pay for more advertising since they are generally trying to beat out other specialists.

On the whole, being a specialist can be very lucrative for a contractor who doesn’t want to cover all of the construction bases. The ability to become proficient in a certain area brings higher rates and more respect. The costs, in general, are lower but there is a greater level of competition. At any rate, many contractors find that specializing is the path for them and perhaps for you too.