Is it time for a few of the lower end contractors to fold up shop? I think the resounding answer to the question is YES! I have heard horror stories from all over the country about how the low bidder is taking the job for less than the material and subcontract costs. Also the contractor that is 3 guys and a truck, bidding the waste water treatment plant and they think they are qualified and capable to do the work because they drove by a waste water treatment plant once. Both of these situations are very bad for the construction market and to the projects.
For the benefit of the construction industry either stick to what you are good at or go away!