{"id":13582,"date":"2024-04-24T18:30:38","date_gmt":"2024-04-24T23:30:38","guid":{"rendered":"https:\/\/stage.buildxact.com\/ca\/?p=13582"},"modified":"2024-04-25T10:43:50","modified_gmt":"2024-04-25T15:43:50","slug":"sorci-2024-industry-challenges","status":"publish","type":"post","link":"https:\/\/stage.buildxact.com\/ca\/blog\/sorci-2024-industry-challenges\/","title":{"rendered":"How construction management software tackles 2024 industry challenges"},"content":{"rendered":"\t\t
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Construction pros in the home building and remodeling industry have been battled tested the past few years having navigated a global pandemic and the high costs and uncertain labor market that followed.<\/p>

A 2024 state of industry report finds these home building professionals resilient and positive as they look to grow their home construction businesses.<\/p>

That report from The Association of Professional Builders is based on a 2023 survey of 1,817 building companies in the United States, Australia, Canada and New Zealand. The results were published in the 2024 State of Residential Construction Industry (SORCI)<\/b><\/a>.<\/p>

The 2024 SORCI report reveals most home construction pros see the year in a positive light, with 76.9% of survey respondents saying they plan to grow in the coming months and roughly half of respondents saying they plan to do so earning 10% net profit on their home builds and renovations.<\/p>

But for this to happen, construction pros will have to address several construction industry trends that the APB survey and report identified. Some of the more prominent trends in the construction landscape include:<\/p>

1. Generate the leads that power growth<\/h2>

The most recent SORCI report found that 45.9% of the builders surveyed say that generating quality leads is their biggest challenge. Yet the survey found that builders do not consistently market their trade to potential customers on social media, nor do they regularly use CRM software to follow up with leads. In fact, 58.7% of builder respondents say they never even email potential clients, and nearly 1 in 3 builders rely on referrals for 80% or more of their leads.<\/p>

Successful builders know how to market themselves. Results from the SORCI revealed that builders who invest time and money on marketing reap benefits. For example, builders who setup an online blog and regularly post about themselves see higher markups on jobs. Also, builders who invest 3% of their revenue in marketing achieve higher gross and net profit margins than those who do not, according to the recent SORCI data.<\/p>

It\u2019s important to note that many construction management software platforms make it easier for builders to setup marketing campaigns<\/b><\/a>. For example, with Buildxact, builders can easily store all their customer and prospect information in one place generated by collaboration software that\u2019s available from anywhere there is an internet connection. Better lead management means more prospects converted to customers. Those conversions then can be used to better predict the profitability from future project wins.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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2. Make the most of your prospects<\/h2>

It is no surprise the key to growth is not just more projects, but more profitable projects. The SORCI report shows builders continue to abandon error-prone spreadsheets as their main project management tool. The survey found that only 12.5% of respondents use spreadsheets for project management. But 25.8% of respondents say they use spreadsheets for estimating. Successful Builders increasingly understand that using software to replace spreadsheets helps:<\/p>