Build smarter now to win later 

Change is in the air. I think we’d all agree that we live in uncertain times. However, while it is unwise to make rash assumptions about timing, it seems that the residential construction sector is on the cusp of an upturn. In this article, Builders Business Coach Graeme Owen outlines five key mindset shifts to ensure that builders aren’t just ready for an industry upturn – but primed to thrive in it! 

The 2024 National Construction Pipeline Report forecasts a steady increase in construction activity. With rising government investment, a renewed focus on housing, and strong regional growth in areas like Auckland and Wellington, there’s a wave of opportunity building for those ready and able to ride it. 

But success in the next cycle won’t come to those who stand still – it will go to those who prepare. For small to medium residential builders, that means shifting from a survival mindset to a strategic one. Now is the time to tune up your business. Focus on sharpening your team. Review your processes and position yourself to capitalise on what’s coming. 

Mindset shifts are important, but they need to be paired with practical steps to ensure that they are fully worked out in your company. So, here they are! 

1. Proactive sales approach

Embrace an entrepreneurial mindset. During good times, you don’t need to do much marketing to get work. Right? Many builders told me that they got most of their work from ‘word of mouth’ advertising. 

What they really meant was that other people were doing their marketing for them (and even, in some exceptional cases, their sales!). People desperate to find a trustworthy builder were only too happy to trust a friend or relative’s referral. It was nice while the good times lasted but it meant that builders who relied on word-of-mouth were not in control of their business. So, when the downturn hit, they lacked the experience and systems to consistently find new work 

Builders who will do well in the coming upswing are those who are upping their marketing and advertising efforts and strengthening their sales pipeline.  

So, ramp up your marketing efforts, refresh your website (check out www.websitesforbuilders.co.nz if you need help), showcase past residential projects, engage on social media and increase your local presence with good signage and neighbourhood flyers.  

Build good relationships with potential clients and consistently nurture your leads. 

2. Partner with reliable suppliers and trades

You are not the only one who wants to get ahead of the coming action. Your suppliers and your subcontractors are also looking to prepare for a likely upturn.  

So, view them as strategic partners rather than simply vendors. Take the time to strengthen your relationship with them. Share insights on upcoming opportunities and explore how you can work together more efficiently and competitively.  

Also, it is a good time to review your expectations for subcontractor engagement. Develop your list of “rules of the game” for when subcontractors are coming onto your sites. Set out your terms and conditions in writing. Get ahead of the game while you have the time and ensure you have trustworthy and reliable partners when demand surges. 

3. Invest in skills and talent development

Look at training and upskilling as vital investments for the long-term success of your business. Don’t be tempted to think of these as ‘costs we can’t afford’. Rather, see such investment as preparing your team for future success.  

For example, give your third-year apprentice the opportunity to lead on a small job. Make them accountable for delivering a finished project. You may need to review your goal setting, planning and communication processes. Now is the time to do this, so that you are ready to delegate work – knowing it will be done to your satisfaction – so you can focus on bringing in new business.  

Failure to train and develop talent will stunt your business growth possibilities. Remember that what you don’t delegate you will have to keep doing yourself.   

4. Focus on financial resilience

It’s really important that you prioritise sustainable profit margins over merely increasing revenue. Yes, I know there are times when you have to trim profit, just to keep the team in work. But be very careful about doing this too much, as it is unsustainable in the long-term.  

Review your strategies to ensure that your business remains viable. For example, make the most of promoting the additional benefits that you bring to your clients. You can add value to your quotes by drawing attention to your detailed guarantee statement. Many clients will happily pay more for peace of mind, especially when it’s backed by a clear, professional guarantee. You can provide real value at little cost. Just be sure that you can honour your promises!  

5. Embrace innovation

Finally, be open to adopting new building practices and market trends. For example, upcoming changes to consenting rules and the way overseas building products can be used mean you may need to ‘school up’, so you can professionally advise clients with confidence.  

Stay abreast of new materials that come on the market, especially those that influence longevity and sustainability. In general, clients like to know that the money they are spending with you will return long-term value.  

Summary  

By focusing on these mindset shifts and taking practical steps to embed them into your business, you’ll be well-positioned to ride the coming wave with confidence and control.