Labor productivity is one of the most important factors that affect the profitability of contractors. Stacking of trades is one of the many influences that affect labor productivity. This research primarily concentrates on the effects stacking trades have on labor productivity. This chapter will address the connection between labor productivity and profit, definitions used in this research, problem statement for this research, purpose of this research, and the methodology used to study stacking of trades.

The construction industry is very competitive and profit margins are small and any mistake can be a company’s last (Adrian 1987). To reduce the risk of business failure, contractors would like to increase their profit margins. To increase a company’s profit a contractor may increase prices (revenue) or minimize costs. A contractor could attempt to raise his or her prices; however, with the high level of competition a contractor could be priced out of the market. The contractor is left with controlling costs as the only option in order to increase profits.