Part III of our report on the 20th Annual Financial Analysis and Operational Study showcases some of the effects of the improving market on builder operations and financial indicators in 2012 and compares them to past years and our benchmark performances. The first part of the study, featuring an overview and economic impact, can be read on the Builder Partnerships' website here. Part II on Operational Impact can be read here. 

Results from the Financial Analysis and Operational Study show improvement over the last few years and 2012 results continue the good news. Increased demand for new homes has helped builders get their operations and financial houses in order, but we are starting to see some cracks forming as a result of the stress of heightened production.

Lot Supply Is Decreasing

We continue to track how much land and finished lots are being carried by the builders. We are beginning to see the number of months of lot supply decrease from 31 months in 2008 to 15.8 months in 2012. The years of supply of land under contract decreased significantly from 5.97 years in 2011 to just 4 years in 2012. 

Read more... 

For years I have been talking about the 50 Mistakes Builders Make. The list includes such gems as "Lack of Systems and Procedures," "Not Enough Liquidity," "Paying Too Much for Land," and "Inadequate Construction Drawings." The errors run the gamut from land acquisition errors to poor sales controls to inefficient production and hit almost everyone in your organization.

Few of the mistakes are more common, though, than "Rush to Construction." Unfortunately, this mistake is both common and one of the most costly errors builders make. 

I don't know how many times I have worked with builders where major issues and problems could have been avoided if only the builder had spent the necessary time upfront planning and preparing for the job. Two of the worst offenses I have seen nearly EVERY builder commit are:

The 4th annual Builder Partnerships Achievement Award in customer satisfaction is now accepting entries. Get third-party validation for your customer service and receive recognition for your excellence.

DEADLINE FOR ENTRY EXTENDED TO November 15, 2013.

Builder Partnerships will award the Customer Satisfaction Achievement Award in 2014 to recognize builders who deliver the highest levels of customer satisfaction. This award does more than offer recognition to quality builders; it provides builders with an economical and reliable third-party verification of customer satisfaction, something every builder can use.

Every builder is eligible for this program regardless of size or location, which differentiates it from other customer satisfaction services.

Builders can earn one of two designations:

• Highest Distinction in Customer Satisfaction: 93% of homebuyers are willing to refer the company to friends and family

• Distinction in Customer Satisfaction: 88% of homebuyers are willing to refer the company to friends and family

There are no rankings. Builders either achieve customer satisfaction or they don't, and their comparison to other builders is only against the measurement.

Entry fee is $99.  

For more information and to submit your application, click here.

Purchasing, Estimating and Job Costing

Denver, Colo.
April 7-9, 2014

Purchasing, Estimating and Job Costing is a comprehensive seminar designed to improve profitability through a more accurate and effective estimating and purchasing department. Good estimating and purchasing is critical to obtaining superior profitability, and can increase your bottom line by as much as 5%. Our goal is to provide a wide range of tools that attendees can use to realize results immediately upon return to their companies.

To read more, click here.

To register, click here .

The Superintendent's Job: Front Line Manager
May 8-10, 2014
Denver, Colo.

The Superintendent's Job-Front Line Manager is designed as an interactive experience to help your team improve job site management techniques. It will provide the necessary tools to increase overall profitability and customer satisfaction through a strong focus on building the house right the first time: on quality, on budget, and on time.

To learn more, click here .

To register, click here .

May 19-21, 2014
Denver, Colo

Managing for Profit is an intensive seminar designed to put you on track to improved profitability. Loaded with valuable insight on management techniques specific to home building companies, this seminar will provide tools you can use to realize improved results across the entire organization. Systems, procedures and forms will be demonstrated so you can begin using concepts learned immediately upon return to your company.

To learn more, click here .

To register, click here .

Builder Partnerships Booth

For the third year, Builder Partnerships is hosting a booth on the show floor, featuring several of our manufacturing partners. In addition, we will once again be offering educational programs, making our booth a destination spot for show goers.

Manufacturers who are interested in showcasing their products should contact Monica Wheaton at monica@builderpartnerships.com