The construction industry in the country has about 680,000 employers with over 7 million workers, and with a total value of $992 Billion for new private construction. This also implies that competition in the industry is exceptionally high, which is why many contractors try to find ways to have an edge over the competition, usually by investing more into their manpower and resources to offer higher quality output, offering competitive prices, or both.
However, in doing so, this lowers their revenue and profit. Profitability isn’t only about how much money your company would be earning, but a higher profit can lead to better stability, sustainability, and opportunities for growth. That said, we’ll be taking a look at ways for contractors to increase their revenue without sacrificing the quality of their work.
Never Compromise Quality
This serves more of a warning than a tip, but it’s vital for contractors not to cut corners and use substandard materials to either lower their quotations to attract clients or to do so in an attempt to reduce costs and increase their profit margin. Not only would you end up producing low-quality output, but you’d be risking your brand’s reputation and trustworthiness. By producing high-quality work, you’d be able to attract more clients, develop a strong relationship with your current ones, and subsequently have more projects to work on — which also means more revenue.
Keep Up With Technology
Adopting new and more efficient construction technology can result in increased productivity, better output, and lower costs which result in higher revenue. Technology can range from actual tools, equipment, and methods used in construction, to project management and communication software to better coordinate, plan, and monitor various aspects of your construction project. These technologies can also help minimize any costly errors that may lead to delays (mismanagement and communication issues) and accidents by having safer tools and equipment.
Get Trusted Suppliers and Subcontractors
A common mistake made by general contractors is haphazardly choosing the cheapest and/or nearest supplier and contractor. This is just the same as compromising quality for profit. Instead, it’s best to be more stringent when it comes to your suppliers and subcontractors, evaluate their products and performance, and build relationships with those that are consistent with their quality and timeliness. If your partnered/trusted subcontractors aren’t available, look for a well-reviewed and trusted supplier for steel, concrete, and other materials you’ll be needing for the project — and the same applies for contractors.
Reduce Employee Turnover
You can improve workforce retention through competitive salary and benefits, improved workplace safety, and providing career advancement opportunities. At first glance, these seem quite costly, so how exactly can retaining your employees grow your revenue? For one, it eliminates the need (and cost) to recruit and train new employees — new employees who you’ll also need to replace through another round of recruitment and training if you also fail to retain them as well. Having a sufficient number of skilled and experienced staff can significantly boost production, lower the risk of costly mistakes, and allow you to take on more projects.
Improve Employee and Workplace Sa