remains focused and unaffected.“We’re throwing one person under the bus,” he jokes, but the strategy is clear—dedicate the necessary resources to manage high-maintenance clients without compromising overall team morale. NAVIGATING ECONOMIC REALITIES MLM Incorporated has had to adapt to significant challenges in today’s economic climate. Rising material costs, labor shortages, and high inflation have all impacted the construction industry, but Medrzycki remains pragmatic about the situation. “I work more for less than I ever did,” he admits, addressing the increased construction costs. Over a short period, project costs have surged, leading some customers to push back.“People on a customer level feel like we are price gouging them,” he says. Despite such feedback, he emphasizes that market prices dictate these costs, not the company’s desire to increase profits.“You can’t change market prices,” Medrzycki points out. To stay competitive, MLM has seen its profit margins compress.“Something that cost $200,000 two years ago now costs $300,000,” he notes. However, instead of enjoying higher profits, the company’s profit margins have shrunk from around 10-15% to about 5-6%. This means more work for less return, a harsh reality for the business.“We are making less money with more work,” Medrzycki explains. He foresees this situation continuing until the market adjusts to the new realities of pricing and inflation. Even so, Medrzycki’s focus remains on sustainable systems and processes to weather this period of low 6 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 08
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