Companies, large and small, have faced many challenges over the last two years with the initial and lasting impacts of COVID-19. Fortunately for the construction industry, business has continued to boom, but supply chain issues and a labor shortage have made it difficult to keep up with demand.
On top of everything else, inflation is causing prices to rise quickly – adding stress to home builders and their clients. The unease in the economy has many concerned with many predictions pointing to an impending recession.
What is a recession?
A recession is a significant decline in economic activity that lasts for months or even years, according to Forbes Advisor. Economic experts announce a recession when there are signs of rising unemployment, a decrease in sales and lessening amounts of and for a long period of time.
Although it’s unavoidable, there are several things you can do to recession proof your business. Joining CBUSA’s group purchasing organization is one of them. Here are three reasons why you need CBUSA to help safeguard your construction business.
1. You’ll save money with group purchasing
GPOs use the buying power of a group of businesses to negotiate better pricing, service levels and account representation from material vendors and manufacturers. They simplify the purchasing process for their members and allow them to compete with large national companies.
Securing these kinds of volume-based discounts is a great way to save money during a recession. But just how much can CBUSA save its members?
A recent study with new CBUSA members showed that participating in just a few local committed purchases and national manufacturing contracts, builders saved over 15% on material costs in critical phases, such as lumber and drywall. This averages out to be over $12,000 saved on each home build.
That’s a whole lot of money back in your pocket to help secure success during an economic downturn.
2. You’ll always have the materials and products you need
There have been supply chain issues and product delays in every industry. Materials are in short supply because of factory shutdowns during peak pandemic and slowdowns due to limited workers. But even when supplies are available, it can take weeks or months to receive them.
The silver lining? Home builders like you have an advantage over other industries – group purchasing. As a member of CBUSA, you can lock in supply volume and prices weeks in advance, meaning you can plan ahead and avoid job delays.
As a combined group, our members have the purchasing power of a top-10 national builder. You’re no longer the small business standing alone at the mercy of suppliers.
3. You’ll benefit from the support of fellow builders
As a CBUSA member, you’ll have the opportunity to strategize with other like-minded construction business owners on buying and best practices. Working as a united front helps each home builder become more profitable.
Ultimately, as a member of your local chapter, you’ll benefit from having other business owners to discuss challenges and opportunities. Having a trusted network that helps keep your company profitable will become an irreplaceable business advantage – especially with the economic trends changing daily.
Safeguard your construction business with CBUSA
Start planning now to ensure your company’s success during a recession. As a member of CBUSA, you’ll save on material costs, have access to our network of preferred local vendors and feel supported by other professional builders in your local chapter.