One-size-fits-all solutions aren’t very common in the construction industry. Businesses tend to become rigidly siloed by specialization, distinctive regulatory requirements, and highly localized markets. Dwelling on the differences, it’s easy to see why businesses working in different categories don’t recognize their potential value to one another. 

That’s the power of the CFMA. Finance is at the heart of every construction business, whether it’s a small specialty installer or a large general contractor.

All that we have in common 

In my experience, our shared goals and challenges far outnumber our differences. The CFMA gives its members an opportunity to discover that for themselves.

If you’re in construction—of any kind—you’ve probably dealt with issues like these:

• Cash flow challenges. Clients who are slow to pay their bills. Big up-front expenses that can’t be avoided. Subs who demand payment schedules that don’t mesh with the master contract. Every business needs strategies for addressing challenges like these.
• Banking relationships. Every successful business has a strong banking relationship. How can companies get the most from them? And what should a business do if its bank makes a surprise move that undermines a key financial pillar?
• Credit crunches. Many lenders consider construction to be a high-risk industry. Premium interest rates put the squeeze on profitability. Many of the same strategies can be applied across the industry to secure better rates.
• Blown budgets. The best laid plans sometimes don’t survive contact with the worksite. Keeping costs under control while delivering on a service promise takes creativity.
• Supply chain pain. The pandemic has been a boon to many construction firms, but the global shipping crisis and shifting competition for resources are threatening margins across the board. How will you respond?
• Fluctuating demand. Economies don’t grow forever. Understanding how other businesses are planning for a down market—even while demand is surging—is an important way for finance professionals to add long-term value.
• Insurance. The quest for a more affordable insurance solution never ends. Although the details vary, the core concepts of workers’ compensation and general liability apply to every type of business.

By pooling our collective experience dealing with topics like these, CFMA members get access to ideas they won’t find anywhere else.

Break the routine

We all have habits and routines we follow to stay organized. Most routines are good for us. But what if they also create blind spots that hinder growth?

I recently talked to a CFMA member about an “ah ha!” moment she had at one of our meetings. She’s spent her career in property development, and over 15 years she’d developed a lot of certainties about the best way to get certain things done.

“I thought I had it all figured out,” she said, “until I learned how other businesses do it.”

Those are the kinds of epiphanies that we hope to capture at CFMA. Not only do we get to rub elbows with colleagues who speak our language. We also get to break out of ruts that might be holding us back from helping our employers achieve greater success.

How has the diversity of membership at the CFMA helped your growth as a professional? Let’s start a conversation in the member forum, or chat about it at the next in-person meeting. I’m looking forward to hearing from you!