2020 Builder Benchmark Survey: Production & Operations Report

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Builders and developers must contend with a wide variety of challenges—from land and labor shortages to managing trade partners—all while keeping an eye on profitability.

In our inaugural survey with Builder Partnerships, we wanted to give builders the opportunity to share their thoughts about their businesses and the industry as a whole.

The Builder Benchmark Survey: Production & Operations focuses on what kind of systems they use, what they see as their biggest challenges, their business outlook, and how efficiently and profitably they are building homes.

Some highlights from the report:

  • Major Challenges: Builders in our survey cited Cost of Land as the most challenging issue followed by Managing Trade Partners and Material Costs
  • Profitability: One-half of builders surveyed reported a profit margin greater than 10%
  • Build Cycle: 76% of builders reported it taking greater than 90 days to complete their homes, while 17% had a shorter build cycle
  • Variance: 64% of builders experience a cost variance of less than 5%, while 11% reported a variance great than 10%
  • Industry Outlook: Most builders (83%) plan to builder the same or more houses in 2020 with 80% having a somewhat or very positive outlook
  • Technology: Nearly two-thirds of builders used a building management system (ERP). As expected, the majority (87%) of medium to large builders used an ERP, while only 36% of smaller builders did
  • Builder Groups: In our survey, almost 1 in 4 builders (38%) reported belonging to a builder group while 13% were interested in joining one but weren’t currently participating.

To see the findings from our survey, download the complete report.

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