onsumers are frequently bombarded with the idea that “bigger is better.” But does being largest always equate to being best? Contractors in Alaska come in all shapes and sizes. And while the large name firms offer great benefits to customers, there are also advantages to selecting a smaller firm.

Skip Myers, owner of Blueprint North, says that business for his firm is flourishing. The company, which employs three full-time staff in the off-season and up to eighteen during the summer months, has found its niche. It completes mostly residential work with some commercial thrown in for variety, Myers says, but sets itself apart by taking on repeat, referral-based projects.

“Most of my marketing is referral,” Myers says. Working with a condominium association management company and acting as its “go-to” contractor provides Blueprint North with ongoing work. The company has also partnered with The Home Depot; team members there recommend Blueprint North to customers looking for help with their home improvement projects. Myers is happy to oblige. These two referral streams alone keep Myers and his team busy in all seasons.

Myers says the size of his company has its benefits. “I’m able to respond easier and quicker [to requests] since I don’t have such a full schedule,” Myers notes, adding another skillset his company brings to every job is attention to detail. “I’m a veteran, and [attention to detail] was big time in the military and goes into this. I don’t cut corners or give a subpar project. If I have to do the same job twice or if something’s not right, I’ll do it again or make it right.”

Myers says small general contractors often have less overhead, which can be an advantage. For example, firms with fewer employees don’t use as much material or require as many vehicles, keeping expenses lower. “I’m at a comfortable spot right now,” Myers says. “And it’s been my experience that any time I try to go up in volume or size, I’m forced back down because of the expensive overhead.”

Construction companies of all sizes are contending with a competitive labor market. It’s the flip side of a great economy, Myers says, and he finds that employees are harder and harder to come by. “Wages are going up,” Myers notes, “so it’s harder to hire someone at $20 an hour.”

That’s a challenge that Tyler Loken, owner and general manager of 360 General in Anchorage, is also familiar with. Loken says the company—which is the third arm of a construction group that also includes Loken Construction and Loken Crane—also struggles with a myriad of building regulations, which are an ongoing challenge. “We have more regulations here with building code than anywhere else in the nation,” Loken says. Many of Alaska’s building regulations are meant to address its severe weather or multitude of earthquakes, for example. However well intentioned, the sheer number of regulations is a challenge, especially for a small construction firm. “It takes a long time to get anything through the permit process,” Loken states.

Arthur Stevens, CEO of Native Construction Management in Anchorage, who has thirteen years of construction management experience, says, “It’s a very competitive market and there are a lot of contractors out here that are bidding and seeking the same work.” He says that managing cash flow and winning enough contracts to provide steady work for the company are also high on the list of challenges facing construction companies.

While Native Construction Management is a young firm, Stevens embraces that status and looks for the opportunity in it. “I’m out there bidding against companies that have been in this business thirty or forty years, going toe-to-toe with them,” says Stevens. “It’s inspiring to see these new guys [bidding] with contractors who’ve had the corner on this project market for a long time,” says Stevens. He says competing with larger or more well-established construction firms is educational.

No matter the market or industry, there are ways for small businesses to participate, and one is specialization. “We’re definitely in a niche spot,” Loken says, which means 360 General has fewer competitors for certain contracts. “We can focus our dollars and efforts into specializing, and ultimately that means simplifying,” he states. Specializing in a type of work while diversifying the contracts and clients can be a strong strategy. Loken notes that both Loken Construction and Loken Crane work most frequently as sub-contractors on larger projects, a benefit to the company and to its clients. “They can focus on the different components of the job and not have to focus on getting the structure up and enclosed,” Loken says.

Contractors can also edge out the competition through networking and developing personal connections with their clients. That’s what Matt Ketchum, managing member of Mat-Su Valley-based K&H Civil Constructors, believes. Ketchum and business partner Scott Hessinger helm K&H Civil Constructors, which provides construction services and runs an aggregate site.

He adds that a perk of working with any small business is that clients often have a direct line to the company’s managers and leaders.

Additionally, it’s beneficial for small firms to look at the unique projects and niches they can serve that larger firms typically won’t be interested in. “If a bigger construction firm maybe has more resources, they won’t even look at some of the smaller stuff that we look at,” Ketchum notes.

“You can compete with them,” he says, “but you have to have knowledge and subcontractors that know how to manage work, that can give you a quote and help you be competitive.” Paying subcontractors on time, being reliable, and hiring qualified people are all key elements to success in the business, Ketchum says. His firm has done $500 projects and $1.6 million projects, but careful analysis, he notes, is required to make any project worthwhile.

Stevens says small firms can find opportunities to be noticed in the form of preferences. Native Construction Management, for example, can be given preference for contracts based on its small business and Native-owned status.

Also, Stevens believes that simply being newer benefits the company under certain circumstances. “A lot of time, companies look for new businesses to work with,” he says. That’s because new firms are motivated and other businesses believe they’ll work hard to build their reputation. “Sometimes clients will seek out new businesses for that reason.” Having a good website, a presence on social media, and a nicely designed logo are other areas in which a small contractor can set themselves up for success and convey a level of professionalism, no matter its age or size.

“Obviously, we come with a lower price tag,” says Loken. That and the relationship the firm can build with customers are what he believes shed a favorable light on 360 General and other small contractors and makes them appealing to work with. A lot of clients become great friends, too, Loken says.

For Myers, learning how to set Blueprint North apart has been key to a well-diversified business. “What you try to do is gain a marketing advantage by finding where you excel and mining those avenues,” he says. “Once I find those pockets that I can go after—private people, or The Home Depot’s referral program, or dealing with the condo management firm—as long as I do good work for them, I don’t think that the big guys can cut into that. They don’t want the smaller markets like that.”

While the economy is always in flux, there will also always be a need for new buildings, renovations, and other projects that require contractors, no matter the size.

Stevens offers these words of wisdom specifically to other small contractors: “Take the lessons learned on each project and anticipate on future projects. You’ll be forced to grow.”