- March 28, 2022
The Association of Professional Builders (APB), a leading business coaching service for custom home builders, with members in the United States, Canada, Australia and New Zealand, today announced the findings from its annual State of Residential Construction Industry (SORCI) Report
for 2022. The report, compiled annually, surveys hundreds of residential home builders operating in the United States, Canada, Australia, and New Zealand. The sponsors for this report include Buildertrend, CBUSA, Buildxact, Xact Accounting and Builda Price.Key findings in the 2022 SORCI report for the United States indicated:
- A sharp rise in the cost of materials, in particular, with lumber prices increasing as much as 142 percent as a result of increased demand and supply chain distributions.
- A surge in home building demand fueled by record low interest rates and increased disposable income among consumers who were unable to spend their money on overseas vacations and entertainment.
- At the start of 2022, inflation had hit 7 percent in the United States. This trend is likely to continue upwards until interest rates are increased, at which point it is likely that demand for new homes may start to drop.
"While the residential home builders we talked to faced many challenges this past year, their resilience is to be applauded," said Erik Cofield, U.S. Executive Business Coach, Association of Professional Builders. "Residential Home Builders have been willing to invest in their education to systemize their business processes. This has enabled them to forecast jobs and schedule revenue more accurately, which has resulted in increased profit margins."Other findings include:
- 74.6 percent of the U.S.-based home builders do not have a business plan covering the next 3 years.
- 51.6 percent of builders in the United States delivered their projects on time in 2021.
- 46.7 percent of the U.S.-based home builders recognize generating quality leads as their biggest marketing challenge.
- 40.2 percent of builders in the United States paid themselves $60K - $120K in total drawings in 2021.
The comprehensive report also dives into trends in sales, contracts, social media, marketing and advertising within the industry. Data from the report also covered insights from residential builders for lead generation, team building, project management, planning, owner's remuneration, financials and self-development. To find out more, go to https://associationofprofessionalbuilders.com