3 biggest issues for home builders in 2022 – and how to combat them

A construction owner hitting a punching bag with text that reads 3 biggest issues for home builders in 2022 – and how to combat them.

Nearly half of all home builders aren’t working on their business. 

That may sound dramatic, but it’s a stat that’s backed by the Association of Professional Builders’ annual “State of Residential Construction Industry” report. Hundreds of builders worldwide were surveyed, and only 52.7% said they’re implementing processes to make improvements to their company.

Given the volatility in the marketplace, this finding becomes even more alarming. Planning ahead gives construction businesses a clear course to follow. It also allows them to avoid being at the mercy of prevailing issues – many of which are worsening across industries.

This report provides insights into how businesses are currently operated and, more importantly, what they should be doing for maximum success. You can get your copy for free now.

So, what should home builders be worried about? And how can a group purchasing organization like CBUSA help you stay ahead? Let’s dive in.

The three biggest issues for home builders in 2022

1. Inflation

One thing that seems to be everywhere affecting everyone. Yep, you guessed it … it’s inflation.

The residential construction industry isn’t immune to this issue. In fact, home builders might be some of the hardest hit. Material costs are rising right alongside operating costs. All this makes it exponentially more difficult to deliver accurate estimates and protect your annual net profit from getting gobbled up.

CBUSA has a whole host of tips to help custom home builders stay ahead of surging prices. Perhaps the most immediate and impactful solution is to join a network like ours. Our No. 1 priority is to leverage competitive prices for our members, especially during unpredictable times like this. 

How do we make it happen? When you partner with a group purchasing organization, you can combine purchases with other local builders to group buy at reduced rates. Additionally, our team secures deals and rebates with national manufacturers.

Unfortunately, inflation probably isn’t going away anytime soon. You don’t have to face it alone.

2. Labor shortages

Amid an ongoing and increasing labor shortage, the residential construction industry needs more than 2 million workers over the next three years to keep up with booming demand, according to the Home Builder Institute.

This issue isn’t new to the industry – but it’s one that’s gotten worse since the beginning of the pandemic. Crew members were laid off, both during the 2008 financial crisis and COVID-19. Many moved on to new careers. Plus, the Baby Boomer workforce continues to age out while younger generations aren’t being taught the value of trades in school.

Time has always been a valuable commodity in construction, but even more so as teams get leaner and leaner. Group purchasing organizations like CBUSA help you make the most of every minute. Procurement is a lengthy process that involves finding the best suppliers, negotiating prices, comparing quality, etc.

CBUSA is here to help beat the shortage by handling much of that back and forth for you. Think of our team as an extension of yours. You can count on us to help get the job done.

3. Material delays

In an ideal world, construction projects flow from one stage of the building journey to the next without issues. Bottlenecks … delays … scheduling conflicts? What are those? Never heard of them!

Unfortunately, any home builder can more than tell you most jobs are far from ideal – especially lately. Still hampered by mill and factory shutdowns during peak COVID-19 and slowdowns with limited workers, builders are having a harder time quickly accessing supplies. Materials are limited and what’s out there takes longer to get from point A to point B.

Like inflation and the labor crunch, supply chain issues aren’t unique to residential construction. These challenges are felt across industries. But what home builders have that others don’t are the advantages of a network like CBUSA.

Through our organization, home builders lock in supply prices and volume weeks in advance. With that in mind, they can plan ahead better and avoid delaying jobs.

Combined, our members have the combined purchasing power of a top 10 national builder. No longer are they the little guys at the mercy of suppliers.

Get more insights from the “State of Residential Construction Industry” report

The power of planning ahead is just the beginning of what this report covers. It’s the most comprehensive study of its kind for residential construction.

The APB pulls back the curtain on how teams are operating, across marketing, sales, operations and financials. You’ll be able to benchmark your success against others and gain valuable insights for business best practices.

Get your copy (for free!) now.

And if you think CBUSA may be the right fit for you, we’re always looking to add more elite builders to our network.