Frank Anton, the vice chairman of Hanley Wood, is an innovative thought leader in the construction industry. Over three decades ago, Anton predicted that the building industry would have two prominent players: very big builders and small builders. Largely, this foresight seems to have materialized. The big players control a large chunk of the business, squeezing out mid-sized builders. As a result, small builders are serving a critical niche while competing for limited opportunities. Currently, big players are no match for the small players when you consider the facts below:

– At least 50% of all closings in major housing markets are controlled by the top 10 big builders.

– 30% of all closings nationwide are controlled by the top 10 building companies.

– The top 4,000 building companies have control of 87% of all closings in the nation.

According to the authoritative data provider for the building industry Metrostudy, there are 30,000 active home building companies in the country. Considering the statistics listed above, this means that 26,000 of these home builders have only 13% of all housing opportunities to compete over. The question that begs is whether small builders can survive in this industry to attain success.

According to Anton, small building companies can only succeed if they set themselves apart from the big players. This means that small builders should offer unique services that cannot be offered by the big builders. It could be building custom homes, energy-efficient floorplans, personalization options, or warranty aspects. Small players have the advantage of knowing what local homeowners on the ground really want for their homes. Leveraging on this personalized data will help builders craft their offerings. Whatever small builders choose to do, they must create competitive differentiators that add value to their brand at a very local level.

Frank Anton’s full article is an excellent read to delve more into these ideas for finding ways to set your business apart from all the others.

Builders will also need to consider digital tactics to attract more prospects for higher lead conversions. Check out our post about tactics we feel every homebuilder should be implementing. Then, contact us and we’ll help you make the most of the home buying season.