When economic times get tough one of the first sectors to get hit is residential construction. No big news there, but can you save because of this ? Good question!

Labour Costs – Savings can be found here for sure but as I said in an earlier blog regarding contractors (The Good, The Bad and The Ugly) you have to be careful. The drop in residential construction has unleashed a large number of contractors into the market. Prices for labour are dropping and you should be able to negotiate but remember to research the contractor you are thinking to hire. People can’t work below cost but most contractors will cut their profit-line to maintain cash flow and keep employees working so negotiate.

Material Costs – Obviously this is the one place you can easily save some money. Right now most manufacturers, importers and retailers are working hard to keep costs down and sell off inventories. That should translate into saving for consumers. Research the material you want to purchase. Learn as much as you can about the product then look for inventory reduction sales and auctions. You’ll have to know what are the best products and what is a good price because the pressure is on to sell. This is where the internet and search engines are your friend. Look for importers or manufacturers that are willing to sell direct to consumers. Many have regular auctions or discount centres where they sell discontinued lines of their products at incredible savings.

Tool Costs – This might not be the first thing on your mind but if you are a DIY person now is a good time to invest in some new tools. Prices for tools are dropping for several reasons. One is the higher Canadian dollar. The vast majority of tools are not made in Canada and when our dollar is up the cost for these tools drops. Secondly, when construction sales drop contractors and trade people won’t be buying as many tools so inventories are up. Finally some contractors will go out of business or simply close shop which means the used tool market should be brimming with good deals. Check out flea markets, garage sales and tool rental shops. That’s right rental shops. If they aren’t renting the equipment they’ll be selling it off and usually at greatly reduced prices.

Good luck searching for deals. They’re out there just keep your eyes peeled and don’t jump at the first bargain.