Industry Threats & Opportunities
- Higher disposable income and improving economic activity have encouraged many consumers to buy homes
- Due to rising home prices and renewed construction activity, industry profit margins have swelled
- The next two years are expected to be particularly strong for operators in the industry... purchase to read more
Industry Analysis & Industry Trends
Over the five years to 2017, the Home Builders industry is expected to grow at a rapid rate. While revenue remains below its prerecessionary high, this growth is a welcomed change from the low levels of demand caused by the housing crisis of the last decade. Such robust growth comes in the wake of increasing per capita disposable income, accommodative interest rates, falling commodity prices and improving overall macroeconomic conditions. In the coming years, the industry is expected to continue its expansion over the next five years, albeit at a slower pace, as the housing market normalizes... ... purchase to read more
Industry Report - Starting a New Business Chapter
No specific barriers to entry exist in the industry other than the need to obtain state-based licenses and registration. But because competition is largely based on reputation and proven performance, many new competitors find it difficult to quickly establish a foothold in the market. As a result, many new entrants will first exist as subcontractors and find work through existing companies that require additional employees for jobs.
Existing operators experience several advantages over new entrants, including access to a pool of skilled subcontractors, ongoing arrangements with material suppliers, ongoing arrangements with financial institutions and property developers, completed examples for displaying their workmanship in a local market and potential word-of-mouth referrals.
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Additional Insights for the
IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Builders Industry are Having a high prior success rate (including completed prior contracts) Access to multiskilled and flexible workforce Development of a symbiotic relationship with another industry
IBISWorld analysts also discuss how external factors such as Value of residential construction and Housing starts in the Home Builders industry impact industry performance... purchase to read more