Eric Miller, Executive Director of NAMFS has long been concerned about antitrust investigations pertaining to the nearly virtual pricing ongoing at the Prime Vendor level. And when it comes to yet another NAMFS #FraudFest 2025, controlled yet again by Verisk with a $22,000 price tag, many are asking if the trajectory of a decades long Miller Regime needs to come to an end. The decimation of NAMFS membership, combined with the stagnation of wages below the Prime Vendor level, has created a nearly 85% rate of attrition when it comes to contractors in a post 2008 Financial Crisis level. And out of that 85% loss of labor, there is yet another 30% loss in the post Covid era. The problem with today’s Industry lies within urban versus rural and the universal pricing Prime Vendors attempt to assign. In yesterday’s Doomberg, there was a great quote,
In economics, a network effect occurs when the value of a product increases as more people adopt it. This phenomenon is commonly observed in the growth of social media platforms, marketplaces, ridesharing services, and communication tools. If enough Uber drivers and prospective passengers congregate in places like airports and city centers, the convenient app generates utility for all involved. In rural areas, it becomes just another unused button on a crowded phone.
There is a reason why inspectors refuse to perform services in a rural setting for the same price as the metro work orders. In the past, it was an equal serving of misery, but at least the metro work would offset the rural losses. Today, though, the vast majority of the metro work is assigned to wholly owned subsidiaries of the Prime Vendors themselves, such as is the case with Mortgage Contracting Services (MCS) and their distribution to GIS Field Services and Five Brothers. And while inspections are the largest pool, when it comes to volume count, the reality is contractors are feeling the pain, as well. There is not a single Prime Vendor whom does not have their own W2 crews. Often, a Prime Vendor will send out several contractors for free bids, and then use them for justification to send their own crews out to profit from. In fact, unless contractors are performing services for SFR based firms, there is no profit left to be made. MCS has made no bones about their Sun and Rust Belt based W2 personnel as we published about here. Here is how MCS described 2024, as their wages to Labor stagnated at 30 year lows, when adjusted for inflation,
“It was a year of progress company wide as overall business revenue increased over 30% and EBITDA more than doubled year-over-year, performing above where MCS was last year across all business lines,” said Craig Torrance, CEO of MCS.
When looking at the above, DoorDash’s latest offer to finance meals on a buy now, pay later basis, it is a statement of how bad the economy is. DoorDash’s partnership with Klarna, a fintech startup providing installment payments, will now allow Labor to buy lunch in four equal installments. NAMFS memes aside, this is a testament to how bad things are now and the tariffs haven’t even kicked in yet. Now is the time to get out of the circular insanity of the Industry and diversify. Interested in turning your firm into a flagship? Simply check out some options below!
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