Extra Effort Needed by Contractors

Soft House Building Market Requires Extra Effort by Contractors

By Eugene Peterson

I write this column based upon current situational needs of my clients.  If it affects them, more than likely it soon will also be your problem.  Today’s topic evolved because I just learned that the housing market, for one Southern California homebuilder, is very soft.  Based upon sales, his new construction will soon dwindle to a snail’s pace. If this market slow-down is not a quirk, then it is just a matter of time before it spreads to you and the rest of the state, then to other parts of the country.  My source reports that visits to his model homes last month, are down 86 percent from the same time last year. This time last year, he averaged seven customer visits per day. Today, visits are down to seven per week. Do the math. That is 210 visits per month, down to 28, a significant drop.  With fewer visitors, sales are at an all time low. This homebuilder has no choice but to cut back new construction.  Many sub-trade contractors soon, if not already, will be looking for new work from other sources.  If not already here, your slowdown just might be around the corner.  The good news is that specialty contractors, (HVAC, Plumber, Framer, Drywall, Roofer, Siding, Concrete, etc.), can keep their business humming and gain a competitive edge, when marketing strategies are added to a daily routine.