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Remain Competitive Despite Rising House Building Costs EQUE2 REMAIN COMPETITIVE DESPITE RISING HOUSE BUILDING COSTS Where construction firms can save money and boost margins in the face of rising house building costs 6 FACTORS THAT AFFECT HOUSE BUILDING COSTS... WITH 6 IDEAS FOR STAYING ON TOP •.. Construction work is complex - it begins long before you start clearing earth... and continues long after your buyer gets the keys. But there are ways to stay competitive throughout. Let's look at the three areas that matter: LAND, MATERIALS, AND PEOPLE. LAND: MAKING FINANCE YOUR WEAPON OPPORTUNITY: New £100m fund for small builders. Accessing finance can be a challenge at the best of times. And new government funding only goes to SMES who can back up their abilities with evidence... meaning those with rock-solid information systems will win. COMPETITIVE ADVANTAGE: Strengthen your systems, and you'll win more funding. SMALL OPPORTUNITY: Think like a top building firm. 2 BUILDERS SHRANK TO LESS THAN 25% OF THE MARKET POST THE CRASH A few years back, no small builder had information systems that compared with the big boys. Today, business modelling tools are available even to those building <100 units a year. IN 2008... COMPETITIVE ADVANTAGE: Model your business processes, and you'll see where the returns are. MATERIALS: WINNING THE RACE FOR RESOURCES 3 OPPORTUNITY: Drive down costs with smarter buying. Short of bricks? Over-ordered steel? It's hard to guess what a project needs in advance. But accurate planning with today's software tools can reduce your losses... by multiple percentage points. COMPETITIVE ADVANTAGE: Cut costs, by knowing what to buy in advance. OPPORTUNITY: Quote accurately to win more jobs. When you know exactly what materials go into each build, you can quote with pinpoint precision from the start. Make the most of your information infrastructure, and you'll have a price advantage. COMPETITIVE ADVANTAGE: Win more bids with accurate costings. PEOPLE: 5 OPPORTUNITY Know who to put on the payroll... and who not to. Using outside contractors can quadruple your labour costs: a bricklayer can cost £1,000 a week. THE SECRET ISN'T TO GO 100%- EMPLOYEE OR 100%-CONTRACTOR: IT'S TO GET THE RIGHT MIX. THE RIGHT INFORMATION INFRASTRUCTURE CAN TELL YOU WHAT THAT MIX IS. COMPETITIVE ADV ANTAGE:Get the skills you use most, at lowest cost. OPPORTUNITY: 6 Build staff loyalty with a training plan The sector's a million people short... partly due to a skills shortage. But for many small builders, training is haphazard. The right training policies let you attract and retain the most capable staff... year after year. WITHOUT IT, YOU'RE VULNERABLE. POST-2008 THE NUMBER OF SMALL FIRMS IN THE UK DROPPED FROM 12,000 TO 3,000. COMPETITIVE ADVANTAGE: Build value in your staff, to build the value of your business. TAKEAWAYS IT CAN DRIVE DOWN HOUSE BUILDING COSTS. HOUSE BUILDERS CAN STAY COMPETITIVE WITH CONTROL OVER THEIR BUSINESS HELP IS AVAILABLE - WITH £10OM AVAILABLE TO SMALLER BUILDERS. INFORMATION.

Remain Competitive Despite Rising House Building Costs

shared by EQUE2 on Oct 26
With housebuilding costs on the up, this infographic pinpoints six areas where construction companies can save money and ultimately remain competitive.




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