Ep 111: 2023 State of the Industry

It’s very important in business to be able to benchmark against what is happening in your industry. The SORCI survey was created by the Association of Professional Builders to serve that exact purpose for builders and remodelers. This year over 1000 builders answered over 100 questions each to share their business’ data in order to compile a true look at the state of the industry. Our guest today, Russ Stephens, shares the results of the survey, highlighting the biggest challenges and successes from the past year.

Show highlights include:

• 2:25 Builder exhaustion, burnout and mental health issues were a big theme of 2022
• 6:05 It’s very important to be able to benchmark your business against others
• 8:20 Generating quality leads was overall a big challenge for builders and remodelers across the board
• 12:33 If you want to increase your margins you must increase your marketing. You should have twice the demand than you can supply so you can pick and choose the best projects for your business
• 17:15 Establishing a strong company culture and core values is a game changer
• 19:07 Only 50% of builders have a documented sales process and the 50% that did were 4x more likely to achieve strong margins
• 25:57 Even though 66% of business owners in our industry still don’t understand the difference between markup and margin the overall trend in financial understanding continues to improve each year
• 29:57 Across the board people were working more hours in 2022 than they did in 2021
• 32:05 With cost of living increases, if you are not raising your pay rates, they are ultimately making less money
• 35:52 Exhaustion, eroding profits and legislative burden is likely to drive more people out of the residential construction industry
• 38:42 There is still an overwhelming sense of optimism and opportunity for growth across the industry

You can learn more about Russ at https://associationofprofessionalbuilders.com/.

The 2023 SORCI Report should be available in March of 2023

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Twitter - https://twitter.com/apbbuilders

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