In 2016, customers are hiring contractors to build new home improvements, not to build a new and improved home.  The construction industry is booming.  But in order to maximize business, contractors should focus their efforts on renovation rather than homebuilding.   Houzz , a home design website, found in a recent survey that over 50% of homeowners aged 60 or older don’t plan on moving.  The shrinking market for home building could be attributed to an aging population, or the general perception that the mortgage market is unsavory.

The US Census found that the percentage of millennials that own a home is still incredibly low–one in three still live with their parents.  When targeting first-time buyers, try to cater to the 30 to 40-something age range.  With this decade’s economic climate, most Americans are just paying off their loan-debt and entering the housing market at about 35.  Keep that in mind when gauging the professionalism and appeal of your marketing approach.

The Housing Bubble is finally behind us, and the construction industry has rebounded at last.  The Associated General Contractors of America found in their annual survey that construction employment has reached its highest level since it climaxed in January 2009.  This is excellent news for construction laborers, but not necessarily for you, their employers.  The industry is already facing labor shortages.  But why?  The Wall Street Journal explained that low wages aren’t sufficient to attract skilled laborers to the physically demanding and dangerous work of homebuilding, while federal immigration reform has reduced the foreign labor pool. Additionally, high schools are continuing to place more focus on college prep and less emphasis on vocational training for young workers.  So, when the labor supply is low, but the labor demand is high, basic economics indicates that the price of labor will rise.  Therefore, as a contractor, if you want your share of the profits in the industry’s boom, you’re going to have to share more of your profits with your laborers.

Big restaurant chains remain leaders in the food industry, but “unique experience” restaurants control the mass appeal. In fact, the National Restaurant Association reports that seven in ten restaurants are “single-unit operations.” Environmentally-friendly, organic restaurants fill the largest urban niche because they sate the desires of today’s health-conscious, green foodie. The restaurant industry has seen a sales increase of more than 20%, so more green restaurateurs are looking to build than ever before.  As a new contractor, it’s important that you are well-equipped to win bids on these new projects.  As the sentimental environmentalist takes over the restaurant industry, expect custom or renovated restaurants to be greener, rustic and LEED (Leadership in Energy and Environmental Design) Certified. Minimizing water usage, capitalizing on alternative energy solutions (i.e. rooftop solar panels) and natural lighting will all improve your chances of winning a bid from this kind of customer.  Additionally, aesthetic trends that go hand-in-hand with this design-style include exposed plumbing and infrastructure, open kitchens, and high ceilings. These exposed details must be flawless, and will require extra effort from contractors, but if these are executed properly, the profits are beyond worth it.

Sometimes, being “trendy” isn’t a bad thing, and as a Florida General Contractor, it’s exactly what you want to be. Contractors Reporting Services is here help answer all of your questions about how to become a contractor, as well as any other industry licensure questions you might have. Don’t hesitate to give us a call to see how we can help you.

Contractors Reporting Services ~ https://activatemylicense.com

13795 N Nebraska Ave,
Tampa, FL 33613 ~ (800) 487-2084