Resumen de Management strategy of small construction contractors during crisis and recession in building industry
Reza Dehghani, Marzieh Hosseininia
Like nature, economy follows a cycle of periods with completely different features. In a general classification, this cycle is divided into two periods, boom and recession, which may differ in terms of duration, intensity and scope. Recession refers to an economic situation where there is relatively low demand for goods and services. A strong recession may lead to widespread bankruptcies, significantly high unemployment and challenge even the most efficient of companies. It is very important for managers to know the status of economy where they doing business, as economies in boom and recession impose different challenges and require different policies and strategies to be adopted. Success in the building industry requires not only technical knowledge and skills but also suitable management capabilities. Economic contraction and recession may force some changes in the priorities of the business but strategic thinking and possession of a strong strategy to achieve short-term and long-term goals by maintaining competitive advantage can save the business. In this study, the factors associated with operation of small businesses in a recession are examined, possible survival strategies that small construction contractors could follow during recession are reviewed, and a few solutions to cope with and grow in a recessive building sector are recommended.
