The First of Many

BuildersPlanet.com

Word of the Week
Monday, May 29, 2000

The First of Many

My name is James Harnett, Founder of BuildersPlanet.com. This is the first of weekly commentaries I will be writing. I'm going to share some candid views of where the construction industry is at and where it is going with technology. I will avoid turning this into a marketing statement for our company but a few 'plugs' might slip in. I think that you will find I have a little different perspective than the typical 'dot comer'. My realistic expectations and views are valid though they don’t always sell as well as hyped up blown out of proportion ones.

Briefly about myself. I have been a General Contractor for the last 15yrs and have worked in construction for over 20yrs. I remodeled and built additions in San Luis Obispo, Ca. at a time when GC’s down there didn’t consider remodeling an important part of the industry. They were too busy building generic orange stucco mansions in Pismo Beach. Boy, things have changed. Remodeling has become more respected, and is catching up and outpacing new construction in many parts of the country. An interesting parallel is I'm building Internet technologies at a time when many construction professionals don't believe the Internet is an important part of the industry. I also have an electronics and technology background with a degree from Cal Poly.

This unique background sets the stage for what BuildersPlanet.com is all about. Our goal is to bridge the gap between high tech ideas and hands on reality for the construction industry.

As I write these commentaries, there will be those who disagree with my views and some will say "Right On!". The idea here is to start you thinkin' and generate some feedback on what your view is on all this Internet "stuff'.

Let me start by sharing some statements being thrown about and what my view is.

"If you don’t embrace Internet technology today your business is doomed."

Many businesses may get by without it. You need to consider your unique company culture, customer type, and plans for growth. It will become more and more prevalent and you should at least consider a strategy.

"The Internet will completely change the relationships between contractors, subs, and suppliers."

Large companies will require smaller companies to get involved for the good of all but don’t expect those years of relationship building to disappear overnight.

"The Internet will get you the best price on all your supplies."

Our industry has historically low margins to begin with and a fairly efficient market in place already. We may be able to offload certain inventories quicker but I wouldn’t expect lower prices.

"Dot coms will overtake the Brick and mortars."

Yeh Right! I’m going to drop the relationship of great services and products with Joe at my local lumberyard for DOT who?

"The Internet will unify the construction industry"

Don’t unify me. Part of the reason I was in construction and had a business was to be unique and call my own shots. The industry is fragmented because it is full of creative people who have different ideas about the best way to do things. This won’t change.

"Our ‘solution’ will solve all your e-business needs."

I think what we’re talking about here is 'Business'. No 'e'. I think companies have to come to grips with their own goals, own plans for growth, and the kind of customers they have and want. Read up, talk to your customers and use your own best judgment about where you think technology fits in your business goals. Talk to technology providers (such as us). We can let you know what we think, how to implement different ideas and bring you forward. Individual construction companies and vendors can do a much better job of deciding what their clients want and need as far as Internet services. BuildersPlanet.com provides the tools for companies to create their own individual Internet strategies.

My Favorite:

"Our cutting edge technology offers dedicated integrated business to business e-commerce solutions by delivering resource centric data information over distributed asynchronous networks and proprietary systems with flexible, innovative communication solutions and strategies with revolutionary e-business and intelligent broadband multimedia exchanges across next generation data systems."

What the @!#% is that? I read statements like this all the time, and research companies daily. Considering my self technically savvy I don’t know what half these companies do except tell stories and raise money.

And I can go on…and I will… next week.