As the Construction industry is fast growing there are still many challenges including getting quality Technicians, low competitor pricing and quality suppliers and contractors.
Labour + Materials + Equipment = Construction Results
Construction is one of the most complex industries to manage large projects and multiple jobs, large teams, and wide variety process and systems
The Construction industry is very important to NZ due to employment and to ensure infrastructure is in place for the public to have minimum standard of housing. Our Business Strategists have spent years working in Construction senior management roles and working with Construction businesses. This industry is very important to
Industry trends highlight rising fuel and material costs, lack of people wanting to be Construction Trade Technicians and lack of financial governance to ensure success.
The Strategize team since 2004 has worked with a wide range of clients from small to large retailers. Some of these Construciton and Trade businesses include:
- Builders
- Construction
- Decking companies
- Demolition
- Drainlayers
- Driveway companies
- Earthmoving
- Electricians
- Flooring
- Tiling
- Landscapers
- Painters
- Plasterers
- Plumbers
- Roofers
- ...and many more!
Trades & Construction Sales Pipeline
We find many Construction businesses we meet need Sales and lack training in Marketing and Sales processes and systems. Another key issues is ensuring a good margin. A Marketing and Sales Plan is essential for Construction business success. The impact of the lack of sales skills includes:
- Under pricing jobs and low or no net profits
- Lack sales pipeline to grow the business
- Low high margin jobs
- Poor management client expectations
- Client upset at variations
- Need for a dedicated sales team or person
- Low client satisfaction from over selling
- Late or unfinished projects
Accurate Construction Pricing
One of the key issues facing Construction companies is low pricing impacting margins. Low pricing creates real problems and a robust Pricing Strategy is essential generating good margins. Pricing can create real problems:
- Lack of cash flow and profit to pay suppliers and cover overheads
- The owner needs to keep putting cash into the business
- Delays in paying to suppliers
- Constant calls from suppliers being paid last
- Suppliers not wanting to supply due to slow payment
- Need to extend loans with bank
- Project delays from slow payments causing delays
- Needing to juggle supplier payments
Project Delivery
Many Construction businesses teams lack formal project or job management skills, processes and systems. A Project or Job Management Strategy is essential for success. A lack of project or job manage creates the following:
- Projects running late delaying delivery
- Over budget causing low margin
- Lack client satisfaction
- Loss of client referrals
- Lost sales opportunities
- Playing catch up and working too many hours
- Poor sub contractor management
- Upset sub contractors and suppliers
- Loss of team retention
What our Trades and Construction clients say
HOUSE BUILDER
“We mainly worked on pricing and productivity strategies with our team with outstanding results. The Business Diagnostic showed us $145,000 profit leakage. Since working with our Business Advisor we have found an extra 4 large building in just 6 months”.
FABRICATION BUSINESS
"Fabrication business through acquisition grown from $1M in sales with small profit to $3.5M with profits over 7 figures and sold within 2.5 years".
CONSTRUCTION CONTRACTING
“The Gross Profit strategies that we worked on gave us a $40k per annum improvement. We have also worked on contractor workmanship that helped as well. Our Business Success Partner showed us how our pricing systems were not covering all costs of the business so with a new system and target market strategy we have improved our net profits by an extra $24k per annum”
Our Business Services for Construction
Our core Construction Improvement business services include:
- Strategizer Tool Construction Business Assessment and Industry Benchmarking
- Construction Real Needs Assessment
- Construction Strategic Planning and Implementation
- Tailored One on One Business Improvement and Growth Programme
- Construction Marketing and Sales Growth Programmes
- Construction Financial and Budget Management
- Construction Business Recovery and Turnaround
- Construction Business Advisory Boards and Governance
- Construction Personnel Needs Assessment, Recruitment, and Development
- Construction Leadership and Management Development and Training
- Succession Planning and Business Sale Readiness
- Mergers and acquisitions for improving business scale
Free High Performance Business Assessment Check Valued at $395
We offer complimentary High Performance Business Health Check to Business Owners with our Strategizer Assessment Tool including latest Industry Benchmarking. This is a two hour session covering all areas of your business including Business Planning, Strategy, Structure, Culture, Marketing, Sales, Finance, Operations, Process and Systems. On average we find 11% to over 29% of extra profit from profit leakage or growth opportunities!
Please contact us below to book your session.
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