In today’s housing market, home builders must navigate a wave of novel problems that, if not dealt with properly, can cause significant delays and extra costs. More than ever, it’s essential for builders to have a plan for handling labor shortages, problems with the supply chain, and shipping delays so they don’t lose money or fall behind schedule on delivering new units.
In this article, we’ll talk about how builders can stay flexible, adapt to current market conditions, and avoid costly mistakes.
Specifically, we’ll discuss how builders can:
- Improve communication with manufacturers and suppliers
- Better manage inventory
- Improve communication with clients
- Consider substitutions if needed due to supply chain issues
- Improve last-mile logistics and focus on delivery efficiency
By following these tips, new home builders will be in a much better position to succeed despite the challenges of today’s market conditions. Let’s get started!
Improving Communication With Manufacturers & Suppliers
As anyone in the home building business knows, good communication is key to success. Unfortunately, with the current labor shortage, many builders are finding it more challenging to reach manufacturers and suppliers directly. In some cases, builders are even being told that they’re not allowed to talk to certain suppliers because the supplier is only dealing with their regular customers.
This communication breakdown can cause significant problems for builders. First, it makes it difficult to get accurate information about pricing and delivery times. Second, it can lead to misunderstandings and miscommunication about what products are available. And finally, it can make it hard to negotiate better terms with suppliers.
To overcome these difficulties, builders need to be proactive and establish good communication channels with their manufacturers and suppliers. One way to do this is to set up regular calls or meetings, so everyone is on the same page. Another way to improve communication is to use a robust construction management software platform that allows builders to manage their projects and communicate with their team members and suppliers in one place.
Improving Inventory Management
In addition to communication, another critical area that builders need to focus on is inventory management. With the current housing market conditions, it’s more important than ever for builders to have a good handle on their inventory.
This is why builders need to have a system in place for tracking their inventory and ensuring that they always have enough materials on hand to meet their production goals. One way to do this is to use a construction management software platform that includes an inventory module. This will allow builders to see what materials they have on hand and track when new materials need to be ordered.
Another way to improve inventory management is to establish good relationships with suppliers to get accurate information about their supply availability, pricing, and delivery times. By being proactive and staying on top of your inventory, you can avoid costly delays in the construction process.
Improving Communication With Clients
In addition to communicating with manufacturers and suppliers, builders also need to focus on improving communication with their clients. After all, the housing market is changing rapidly, and buyers’ needs are constantly evolving. As a result, builders need to stay in touch with their clients and keep them updated on the latest changes in the market.
One way to improve client communication is to send regular updates via email or text message and schedule regular same-page meetings with the client. By keeping your clients informed, you can avoid misunderstandings and ensure everyone is on the same page and understands where you’re at in the construction process at all times.
Consider Substitutions Where You Can
If you’re having trouble getting your hands on certain materials, don’t be afraid to consider substitutions. In many cases, builders can find other materials that can be used in place of the ones they originally wanted. While it’s important to keep your clients informed about any substitutions, in most cases, they’ll be understanding as long as you’re transparent about the situation.
Of course, substitutions aren’t always possible, but it’s important to keep them in mind as an option. By being flexible and considering all your options, you can avoid costly delays in the construction process.
Improving Last-Mile Logistics and Focusing on Delivery Efficiency
Another way to stay agile when building new homes is to focus on delivery efficiency. Managing deliveries at the correct times throughout the construction process can be challenging and time-consuming. However, by focusing on delivery efficiency, builders can avoid costly delays.
One way to improve delivery efficiency is to use assembled kits. Assembled kits were used successfully after World War II to deliver homes quickly and efficiently to soldiers returning home from war. These kits typically contain the materials needed to complete a specific task, such as framing or plumbing. Using these kits saves builders time and avoids having to source individual pieces.
Aside from kitting, builders can focus on delivery efficiency by streamlining their processes and making their ordering more efficient. When builders have a system in place to stay organized and plan ahead for their upcoming supply needs, they can coordinate more efficient deliveries of bulk supplies and give their suppliers more advanced notice to ensure they have the products they need on hand. By planning ahead for exactly when those items need to arrive on the job site, they can avoid the many last-mile logistical issues that can arise and result in delivery misfires caused by supplies arriving too early or too late for that stage of the project.
In Closing
There’s no doubt that the housing market is facing some challenges right now. However, by staying agile and focusing on communication, collaboration, and efficiency, builders can overcome these challenges and avoid costly delays in the construction process.
Do you have any tips for how builders can stay agile in today’s market? Share your thoughts in the comments below!
