Association of Professional Builders Releases 2023 Trend Forecast for Custom Builders & Remodelers
HOUSTON, TEXAS — The Association of Professional Builders (APB), a leading business coaching service for custom home builders, with members in the United States, Canada, Australia and New Zealand, today shared a 2023 trend forecast for custom builders and remodelers. Despite many issues that plagued 2022 including supply chain delays, labor shortages, low unemployment rates, high inflation, interest rate rises and builder burn out, optimistically, two of the biggest findings in the forecast indicate that 58% of builders still delivered homes on time and are operating in the black. Builders reported 2022 as a record year for revenue and most importantly, their net profits were up. Many builders also reported signing contracts at record margins during the last quarter of 2022 even as the market softened.
The forecast comes ahead of APB’s upcoming annual 2023 State of the Residential Construction Industry (SORCI) Report, which will come out in March and detail key insights from over 1,000 residential home builders operating in the United States, Australia, Canada and New Zealand.
“We are pleased to see that builders are turning record revenues and net profit margins as it hasn’t always happened this way, even with less economic turbulence,” said Russ Stephens, co-founder, APB. “We’re seeing builders get smarter about how to operate their companies. They are turning more profitable as a result of a better understanding of their finances, implementing better technology, and putting in place better sales and marketing processes.”
Residential home builders should be encouraged by these signs and continue to understand how to remain profitable, no matter their company structure. APB cited a slower sales cycle in 2023 and emphasized the importance of builders implementing a structured approach to their selling. APB noted in particular that builders must understand how their sales will affect their margins. Builders who do not are often forced to drop their prices in order to win jobs, which can then in turn create a long-lasting domino effect that will ultimately impact their bottom line.
For more information and to access additional resources and insights, please visit https://associationofprofessionalbuilders.com. To pre-order a copy of the 2023 SORCI Report, please visit: https://go.associationofprofessionalbuilders.com/sorci-download.
About The Association of Professional Builders
The Association of Professional Builders is a leading business coaching service for custom home builders in the United States of America, Australia, New Zealand, and Canada. It provides tested and proven systems for builders to scale and succeed, based on data, experience, and results. For more information, visit: https://associationofprofessionalbuilders.com.
