Blue Collar Businesses and the Future with A.I.
You’re probably reading about all the layoffs in corporate America (Microsoft, Netflix, Kroger, etc.) and feeling pretty secure with your Blue Collar business. After all, A.I. isn’t going to be able to clean a house from top to bottom any time soon.
But I do think there’s reason for concern. This newsletter isn’t meant to be doom and gloom. Instead, I am going to try and outline what I think the A.I. surge means for blue collar businesses and how you can position your business to be successful.
Corporate Layoffs will Continue
This one is obvious. My very first job out of college was in finance at a Fortune 100 company. My job was to pull data, clean the data, and put it into a pretty powerpoint slide for executives with a summary and my viewpoint. A.I. can now do this 10x better and faster than I could.
Corporate layoffs will continue as corporations put creating “shareholder value” over individual employees.
Blue Collar Businesses will Boom
As layoffs continue, those impacted will migrate to areas they deem as “safe”. These are blue collar businesses that you and I currently run. Landscaping, window washing, HVAC, plumbing, construction, drywall, cleaning, etc.
The inflow of new businesses in blue collar industries will cause downward price pressure for customers and a wage war for top talent blue collar workers.
We might feel safe because we are operating “A.I. resistant” blue collar businesses but they won’t feel so resistant and protected when 10 new local competitors pop up in your town.
What I’m Doing to Prepare
Now, I know this seems depressing and like fearmongering, but if you’re reading this newsletter, you’re positioned well to withstand the storm and thrive.
First: Build customer and employee loyalty
Pricing is not the most important thing for all customers. Customers place more value on consistency and reliability than you might realize. They don’t want the cheapest price if it means switching to an unproven service. Same with cleaners. They won’t immediately want to switch employees for promises of higher wage if they are treated well and have consistent, reliable work.
Start today to do things that build customer and employee loyalty. Show up on time and consistently, always run payroll on time. Do the small things that make a difference (remember birthdays, special events, and names of spouses/children, etc.). These things might feel like a waste of time but how likely is someone to switch for a 10% discount when they feel a personal connection?
Second: Reduce costs and implement A.I.
Where it makes sense, look at reducing costs and implementing A.I. in your business. That’s why we’re partnering with AssistStreet to hire and train overseas virtual assistants in our cleaning business. AssistStreet is more than a staffing firm. They find, hire, and train virtual assistants specifically for cleaning businesses. If you already have a VA but they aren’t producing, AssistStreet will train them alongside you while you’re focused on growing the business. You can schedule a free consultation here.
Third: Build a Brand Moat
When there are 10 cleaning companies in town and they all have 100 5-star reviews and all charge the same price, who will the customers go with? The ones that the customers see regularly. The ones who are advertising across many different platforms (social media, print, referrals, etc.). The majority of customers need to see your name 7 different times before they are willing to seriously consider hiring you. Make it as easy as possible for these customers to find you. Start to post regularly on social media, attend community events, have booths at local fairs, etc. All these things make it more likely that a customer chooses you when faced with several great options.
While I think the next few months will leave a lot to be discovered. I don’t want you or I to be caught on our heels.
Which steps did you read about that you’re planning to implement? If you’re still with me, send me a note with what you’re doing to safeguard your business.
Until next time!
Logan



