CUED

Market Analysis for a Home Repair and Insulation Service

Based on the findings we concluded that a small not-for-profit operation was feasible and that it could eventually lead to an operation on a for-profit basis. A picture of the market was developed including; type of repair jobs demanded; planning required; comparative advantages; expectations; characteristics of suppliers; building maintenance and income in the area; as well as risks involved. It seemed clear to us that no specific company had control of the area; on the contrary, the market is shared by various small contractors and repairmen with very low operating costs. Demand is sizable and the market can be penetrated if low costs, high quality work is offered. Owners of buildings hire contractors to do repairs, but also do much of the repairs themselves. The age of the buildings demands continuous repairs of all sorts and each job is different from any others to some extent; small unit buildings predominate and income is limited. All these factors demand flexibility and careful planning and do not seem to allow for a large operation. With respect to the type of operation, we concluded that it will need the shelter of Latino Youth until an adequate level of productivity and a good reputation is established. Also, if it is to become a for-profit operation it cannot pay for the training program. A financial plan showing how much work the company has to do in order to break even (including current subsidies) is developed at the end of this report. Also, other scenarios depicting the same situation without subsidies are included. These scenarios, of course, are not final; they are presented as illustrations that Latino Youth can develop further in a Business Plan once the detailed decisions are made by the Latino Youth staff and administration.

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