The construction industry isn’t short on challenges. Costs are up. Labor is scarce. Margins are thin. The pressure to scale without sacrificing quality has never been higher.
For small builders, it can feel like going up against Goliath. National firms have deep pockets, brand recognition and buying power. But across the country, smaller builders are changing the game – and finding ways not just to survive, but to win.
They’re doing it with strategy, not size. And more small builders are realizing the smartest move isn’t to do it alone – it’s to pool their strengths, share knowledge and compete together. David didn’t beat Goliath by matching his strength. He used a smart approach. Small builders are doing the same.
Why small builders are rethinking competition
Inflation. Rising interest rates. Supply chain instability. Today’s market is volatile and unforgiving – especially for smaller construction businesses without volume discounts or massive crews to lean on.
Smaller firms are feeling the pressure from all sides, and the traditional “do it all yourself” mindset is starting to shift. More builders are asking: How do we keep our independence but gain the strength to take on Goliath?
Here’s what small builders are up against:
- Material costs keep climbing with little predictability, making accurate estimating a moving target
- Interest rate hikes and economic uncertainty have made clients more cautious – and financing more complex
- Finding and keeping skilled labor, especially for firms without name recognition or large hiring budgets
- Clients expect more for less, and small teams are doing double-duty to meet service demands
- Tight margins leave little room for error, and every misstep hits the bottom line harder than it would at a bigger firm
That’s why independence is giving way to interdependence – and smart collaboration is starting to look like a competitive advantage.
Strength in numbers: The rise of builder networks
Builder alliances and group purchasing organizations (GPOs) are changing the game for small construction firms.
Instead of trying to do everything solo, small builders are joining formal networks to share resources, compare notes and gain collective buying power.
The result? Real savings and real support. By joining forces, they can negotiate better deals without increasing staff. CBUSA member Randy Reitz of Urban Nest Homes enjoys the combination of savings and builder-to-builder support.
“We joined CBUSA in 2019. It has probably been to date one of the best things we’ve done for our company,” Randy said. “We benefited not only from cost savings and purchasing but with camaraderie and mentoring relationships with other established builders.”
Strategic benefits of banding together
More than just cost-cutting, these networks offer smaller builders a smart way to scale influence, access better deals and operate like a much larger company – without the overhead. Here’s how smart builders are using it to solve real business challenges.
1. How can small builders improve buying power without growing headcount?
Networks like CBUSA negotiate national contracts with major suppliers and manufacturers. That means builders get better pricing on the materials they’re already buying – without hiring additional team members.
Instead of managing multiple vendor relationships solo, they tap into pre-negotiated deals with built-in rebates and support.
More builders are realizing they don’t have to get bigger to get better. They just have to get connected.
Take CBUSA members, for instance – they save an average of $9,500 per house just by pooling their purchasing power across 850+ builders in 35+ markets.
2. What are the top vendor negotiation strategies for small teams?
It starts with leverage. One builder might struggle to negotiate on price or delivery timelines. But a collective of 50 builders in a region? That gets suppliers’ attention.
Justin Einstein, vice president of operations at Aubuchon Homes in Southwest Florida, finds that banding with CBUSA has helped his team secure stronger contracts and improve reliability.
“When CBUSA, who has national relationships with 84 Lumber, gets involved, they listen differently. We get better prices and better commitments on deliveries, and we wouldn’t be able to do that without CBUSA,” Justin said.
With a GPO backing them, builders gain access to better terms, personal hands-on support and dedicated reps who understand their business. It’s not just about price – it’s about being taken seriously.
3. How does shared forecasting reduce risk and delays?
When builders in a network share volume forecasts, they help suppliers plan ahead – ensuring inventory is where it needs to be before it becomes a problem. That kind of coordination reduces the risk of project delays and gives builders a stronger negotiating position.
Steven Sanders-Myers, purchasing manager at Brightwater Homes, credits CBUSA’s shared forecasting for helping his team stay ahead of supply chain issues.
“It’s night and day from doing it yourself. With CBUSA behind us, we’ve negotiated better pricing, cut down lead times and our vendors are more responsive because they know we’re part of something bigger,” Steven said.
It also means your supplier isn’t guessing at demand – they have real numbers and timelines they can act on.
4. Why do successful small builders invest in community instead of competing alone?
Smart builders know that strong relationships are just as critical as construction expertise.
Builder networks create opportunities to learn from peers, share solutions and build collective influence in their local markets. Instead of seeing each other as competitors, they work as collaborators to solve common challenges.
CBUSA members collectively received over $13 million in rebates last year alone.
That number reinforces how investing in a community is essential to success.
Smart strategies every small construction business should master
Joining a network like CBUSA is one of the most powerful small construction business strategies available. But it’s just one part of a bigger playbook. The most successful small construction businesses don’t just build homes – they build smart, strategic operations. Here’s how:
1. Focus on financial visibility and job costing
Cash flow is everything. For small builders, even one delayed payment or bad estimate can throw the entire business off course.
That’s why accurate job costing and real-time financial tracking aren’t optional. They’re survival tools. Platforms like Buildertrend give teams the clarity they need to forecast cash, manage spend and stay on budget – even with a lean back office.
2. Build supplier and trade relationships like a pro
Great supplier relationships aren’t about always getting the lowest price. They’re about building trust.
When you pay on time, communicate early and stay loyal, suppliers will often go the extra mile for you. That might mean priority delivery, flexibility in a pinch or better terms when it matters most.
Treat your vendors like partners, not transactions. The return is worth it.
3. Get laser-focused on niche and brand
The best builders aren’t trying to be everything to everyone. They know their lane and own it.
Whether it’s energy-efficient custom homes or high-end remodels, niche expertise builds trust, credibility and word-of-mouth. That’s how you carve out a clear unique selling proposition (USP) – the thing that sets you apart from both low-bid competition and national players.
Define your USP, stay consistent and market it well. That clarity is what makes you memorable – and referable.
4. Embrace smart collaboration
Gone are the days when going solo was a badge of honor. Today’s most resilient builders know that smart collaboration can unlock cost savings, faster timelines and fewer headaches.
Whether it’s through a GPO, a builder chapter or informal peer groups, sharing ideas and resources builds resilience. And in this market, resilience is everything.
Your competitive edge might already exist – you just need to join it
The construction industry is tough. But small builders are tougher – especially when they stop trying to match Goliath’s size and start playing to their own strengths.
Builder networks like CBUSA are giving independent firms a seat at the big table. If you’re ready to explore how shared strategy, smarter purchasing and real collaboration can help you grow, let’s talk.
Explore member success stories or schedule a consultation to learn how CBUSA can help your business thrive.