Is the Gig Economy Coming to Your Contracting Business?

You push a button on your smartphone, and hire a driver to take you where you want to go. You open another app and here comes dinner. What if you could do that for your contracting business? In truth, the gig economy is spreading into every possible industry, including construction. Find out what’s happening, and how it might represent opportunities (or competition) for your contracting business.

What Is the Gig Economy?
If you find it a little difficult to understand what it is to be part of the “gig economy,” you’re not alone. It’s a term that redefines what it means to be self-employed. Essentially, the gig economy focuses on contract labor. As a gig worker, you may have tons of clients who hire you for occasional jobs, usually with a short project length. As an employer, you might hire gig workers much like you would arrange for temporary labor. There’s no guarantee of employment, and gig workers usually don’t get benefits like paid time off or employer-sponsored health insurance. In exchange, people in the gig economy can set their own schedules and rates, and work for whomever they choose.

What’s the Difference Between a Self-Employed Contractor and a Gig Economy Contractor?
If you’re thinking that the gig economy sounds a lot like the construction industry in general, you’re not wrong. In fact, when survey organizations break down the millions of gig workers by industry, construction takes up almost a quarter. This is because many jobs within the construction industry don’t involve working for a single employer. Your local carpenter, plumber or electrician might count themselves as a part of the gig economy. The biggest differences usually relate to the terms of the contract. People who can expect a regular wage or benefits for longer contracts tend to fall outside the gig economy’s definition.

How Is the Construction Industry Taking Advantage of Gig Economy Innovations?
Since temporary labor arrangements and construction have gone hand-in-hand for decades, it might seem odd to think that the gig economy can change the industry. But it is. Take machine rental as an example. Deciding whether or rent or buy machines is an expensive proposition, and it’s not surprising if you choose to rent most of what you use. It’s also not surprising to find it difficult to track down the equipment you need. These days, there’s an app for that. Instead of having to call a dozen rental companies, you can post your project and be matched with a qualified company and operator near you.

How Is the Gig Economy Changing the Construction Industry?
At this point, you might be thinking that anything that helps you cut down on your hiring obligations or to smooth out your workflow is probably going to benefit you in the long run. And you’d be right. The gig economy has certainly streamlined the process of finding temporary employees or subcontractors based on the job. If you’re looking for jobs to do, you may find that easier, too. It can give you more opportunities to build skills or avoid a problematic work environment.

Is This a Viable Model for Your Contracting Business?
Unless you plan to work with an established company after you get your contractor’s license, you’re likely going to be dealing with the gig economy in some fashion. There’s a ton of potential, but you have to manage the disadvantages, as well. Be prepared to do some extra work to find out what tools, apps and platforms are out there to make it easier for your specific job.

Just keep in mind that whatever benefits the gig economy provides you in terms of finding work, your competition will have as well. Plus the trouble that comes with not knowing where your next project is going to come from. This is why a lot of people working in the gig economy do it as a side-hustle in addition to their primary business.

There’s billions of dollars in the gig economy. If you know how to find it, you can take a piece of the action. To get started on the path to your own successful contracting business, contact CSLS today!