Robert James Squire and Dr. Nile W. Hatch, Organizational Leadership & Strategy
Strategic analysis is a useful tool in determining the economic prospects of an industry. Strategy can be particularly useful in understanding the dynamics of changing industries. Struggling industries should benefit from an understanding of their strategic environment. The residential masonry industry in Northeastern Ohio is an environment experiencing drastic changes. Like most building industries new materials have become popular alternatives. The traditional decorative brick and masonry foundation have remained relatively popular in this area unlike many other regions. Ohio is a unique market because it has experienced these changes much later than most other areas.
My goal was to determine the overall health of the industry for residential masons and identify what factors have contributed to the popularity of masonry in the area. The information gathered about the industry could then be used to formulate strategies for businesses in the industry to remain competitive.
Information for my research came from a survey and from public information about the industry. The survey was sent to 225 of a local supplier’s customers. The survey consisted of 19 questions about businesses profitability, competition, and growth. The questions were designed to allow some statistical analysis of the industry. Several open ended questions were given to provide context for the statistical results.
The survey produced worse results than I had anticipated. Out of the 225 surveys distributed only 20 were returned. The open ended questions from the survey did provide some useful information. Area masons seemed to have trouble with similar problems the most surprising of which was finding labor but problems also included increased regulation for safety and building requirements. Overall the area masons were experiencing pressure from both builders who want a cheaper product and suppliers who often act as banks for the contractors. However, there is hope for the industry. Commercial building in the area does not suffer from the same pressures. The higher wages and easier working conditions often bring better workers. Customers are much less price sensitive and are often must pay a premium to get experienced contractors. Demand for commercial construction is much more sporadic and the higher cost of labor keep workers out residential construction but the inverse is not always true. Residential masons with lower pay scales can remain flexible and keep busy using both commercial and residential masonry.
It is difficult to make conclusive statements about the industry without better information. I was extremely disappointed in the poor response rate to the survey and I feel I could benefit from further knowledge about administering surveys. I feel like I gained a great deal of knowledge about the industry in spite of the poor response rate. The project has taught me about the difficulty of gathering good information and has been a learning experience that would be difficult to duplicate.