According to the 2023 Dodge Construction Outlook, overall construction starts are expected to be flat in 2023 when compared to 2022. That doesn’t take into account inflation, increasing mortgage rates, and high construction costs. The estimated number of single-family housing units is expected to decline by 6% to 891,000 units. So, doing the same thing you did in 2022 and expecting the same results in 2023 just is not going to work!
The challenge lies in how to manage your construction business with an estimated 6% decline in projects and an expected salary increase of 4.6 percent in 2023. You’re already down an estimated 10.6%! What’s the impact of a 10.6% decline in profitability?
Stiff competition on bidding projects is expected to continue. What is your current bid win rate? How many bid wins will you need in order to maintain your existing operation? Who is providing the sales and marketing insight that will improve your bottom line? A Wix website or marketing services offered without benefit of context, expertise, construction marketing ideas, a strategy, or continuous improvement are not going to “cut it”.
It’s time to decide what’s going to be “work in progress” and what’s going to be backlogged in your construction marketing. Whether you are in residential construction or commercial construction, here are a few recommendations to get you started:
Establish a game plan and a budget for 2023. Otherwise, you risk spending your budget on things that do not align with the goal of winning the right projects.
Track bids and opportunities with a CRM. What happens when someone requests an estimate or consultation? How do you follow up with these potential customers?
Revisit your website to ensure that it aligns with plans to secure your target projects. When was the last time you updated your projects? How do your services pages speak to leads whose pain points will be alleviated via your company's services and solutions?
Embrace SEO to take your website to the top of the search engines. How is your company positioned in search engine rankings locally? Are you in the same business directories where your competitors are?
Reach homeowners on social media such as Facebook and Instagram. How will potential customers ask friends and family for recommendations? What projects are you showcasing on these social platforms for people to understand your capabilities?
It’s time to take action. Your competition and customers won’t wait for you. If you are waiting, don’t hold your breath. Inflation, mortgage rates, salary increases, and construction costs are still coming. These will be common concerns for home services marketing, consumer services, etc. because consumers will need to prioritize their dollars.
Do you have the time or expertise you need? Book an appointment today!