The Alaska Contractor: Fall 2006

BANKING & CONTRACTORS
Solid management builds
successful businesses
As many in the industry know,
building a successful construction
business takes more than
owning a pickup truck and a tool set.
It takes skill, determination and the
ability to manage supplies, people and
fi nancial risk.
According to a recent study by
AGC, contractors cite management
issues as one of the top fi ve reasons
businesses fail. In a growing market,
solid management skills give you an
edge over the competition.
In the banking industry, our goal
is to help Alaska contractors and others
in the construction business succeed.
As a banker, I see every day how
important management skills are in
building a successful business. When
it comes time to fi nance those in the
construction industry, the numbers often
show us just how strong the management
team is. Many times we see
how expensive inexperienced management
can be.
BY ELIZABETH HAPPEL
The search for qualifi ed
managers
One issue faced by many Alaska
contractors is a shortage of qualifi ed
people to fi ll key positions. You’ve
heard the old saying, “good help is
hard to fi nd.” In this highly competitive
industry inundated with new contractors
and construction workers, fi nding
someone with the right management
skills may be diffi cult. Add in an aging
generation of baby boomers and
that task becomes even more diffi cult.
The baby boomer generation accounts
for 28 percent of the population. That
means in the next fi ve years, more
managers will be retiring and leaving
openings for the next generation of
contractors to step in.
Education and experience
Finding the right person or the
best education to become a competent
construction manager may soon
be easier. Currently, the University of
One issue faced
by many Alaska
contractors is a shortage
of qualifi ed people to
fi ll key positions.
Alaska Anchorage offers only a twoyear
associate degree program in Construction
Management. However, the
university is planning to start a fouryear
program by the end of the year.
Construction industry offi cials have already
demonstrated their support for
this important program.
66 The Alaska CONTRACTOR Fall 2006