Homebuilder Construction Rates Accelerating; Let’s Talk Efficiency

Homebuilder Construction Rates Accelerating; Let’s Talk Efficiency

Builder Order Growth Continues to Accelerate

Alan Ratner, Managing Director of Homebuilding Research at Zelman & Associates, recently delivered great news for homebuilders saying,

 “Builder order growth has continued to accelerate; excess speculative inventory has been absorbed and housing starts are picking up to satisfy demand.”

Isn’t this great news for everyone associated with the homebuilding industry?

Yet, Increased Construction Activity Presents Risks

Ratner continues,

“Increasing construction activity always presents the risk of cost inflation and labor tightness.” 

 If you’ve been reading our Blog, you might recall a March 2019 article noting Ashok Chaluvadi’s comments in Builder,

A key issue cited by 82% of builders is the cost/availability of labor. What’s particularly noteworthy is labor replaced building material prices — which had been the hot topic in 2018.

Increasing Costs and Labor Shortages Turn Focus to Efficiency — Particularly SST

This environment (increasing costs, labor shortages) provides an opportunity for builders to laser focus on areas specifically under their control —  operations — in order to increase internal efficiencies (and, in turn, profitability). One opportunity is automated construction scheduling — particularly SST elements (that is, self-service technology). 
SST had somewhat of a bad reputation in years past.  It may have tried to do too many things in too disparate ways. However, attitudes change; today, demographics and technology make SST an important tool for home builders as they consider that increasing workplace productivity is the option most under their control, today.

SST implies technology and construction management software leverages SST

An effective construction software implementation gets everyone within the building process (and that includes both in-house and vendors) on “the same page” as to which tasks need to be accomplished, in what order and on what date.
Cloud-based software makes the information available to everyone, 24/7, anywhere anytime. That means you can expect a reduction in delays, dry runs, phone calls, texts, misunderstandings
In a sense, getting everyone on the same page is a good first step in exerting organization control.  Interested? CPS’ FieldCollaborate is award-winning automated construction software; contact us and we’ll give you all the information needed so you gain productivity while experiencing this order growth!

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