The last few years have been a wild ride for the construction industry. As we move into Q4 of 2024, and beyond into 2025, we believe understanding market trends and forecasts is going to be essential for your business strategy.
Understanding the Market Landscape
The latest report from Harvard’s Leading Indicator of Remodeling Activity (LIRA) brings some positive news: a modest rise in remodeling spending is forecast through mid-2025.
But while things (finally!) seem to be looking up, we have the hump of the election to contend with first. The demand for new projects remains challenging. A proactive, adaptive strategy is going to be crucial for business stability and potential growth in this environment.
The LIRA report suggests a slight rise in remodeling spending, but with a slowing growth rate. Factors like rising interest rates, inflation, and economic uncertainty are shaping how homeowners spend. Now more than ever, it’s crucial to adapt your business strategies to align with these shifting market conditions.
Tips & Strategies for Success
Our team at Keokee has spent the last month or so dialoguing with several different business coaches who work with construction companies to nail down our top six tips and strategies for protecting your remodeling business right now. Here they are:
1. Adopt an Entrepreneurial Mindset
Embrace change and stay flexible. Evaluate your current business model and adjust your operations to be more cost-effective and resilient. Innovation and flexibility will be your greatest assets during this period.
2. Align Your Business with Future Goals
Define the future you envision for your business and take deliberate steps now to align with that vision. This might involve investing in new technologies, enhancing your service offerings, or targeting niche markets that are less affected by broader economic trends.
3. Review & Refine Your Sales Process
Make sure you are taking advantage of every lead that comes your way. And understand that potential clients are doing more research and taking more time to decide on new projects. People are still buying but the sales cycle is taking longer as potential clients mull things over.
If a homeowner is serious about their project, be prepared to remind them that it could be months before their project will start due to plans creation, selections, budgeting around those selections, and building permit wait times. Helping them clearly understand the building process can often convince them to take the first step and get their project rolling.
4. Bolster Strategic Networking & Partnerships
Identify and collaborate with professionals who already have access to your desired client base. This includes architects, engineers, designers, developers, and subcontractors. Building strong, mutually beneficial relationships can lead to new opportunities and shared projects.
5. Invest in Professional Development
Ensure your team is equipped with the latest industry knowledge and skills. Encourage ongoing training and development to keep your staff at the forefront of industry trends and best practices.
6. Target the Right Homeowners & Enhance Existing Client Relationships
Focus on clients who have the financial means to undertake building projects without relying heavily on loans. Develop a compelling narrative that highlights your unique value proposition and showcases successful past projects. Personalize your marketing efforts to appeal to this demographic, emphasizing quality, exclusivity, and bespoke solutions.
For those clients who hesitate, help them understand that their hesitation is being rewarded with an annual cost increase of 7% to 10%, maybe more. Waiting is not a good financial strategy as costs will continue to rise!
Strengthen your relationships with existing clients through exceptional customer service, regular communication, and loyalty programs. Satisfied clients are more likely to refer you to others and become repeat customers.
How Can Keokee Help?
As your strategic digital marketing partner, your Keokee team is here to help! Let’s talk about your current marketing strategy and what we can do to revise and improve. Here are four things we can work on together right now:
- Review your advertising plan. Let’s ensure the locations we are targeting with your ads are the most ideal neighborhoods. Consider diversifying your advertising budget with Google Search Ads, Google Local Service Ads, and maybe even Microsoft Ads.
- Update website copy to highlight your expertise and value.
- Direct mailers to showcase your services to the right homeowners.
- Review your email campaigns and create a drip campaign to nurture soft leads.
Just like you, Keokee is a small, locally-owned business. We understand how these next few months could make or break the future of your business. Our goal is to get you leads. Everything we do is focused on lead generation and improving that process. And we know how vital that is to your success.
So let’s work together to make sure you are taking advantage of opportunities by adopting a strategic approach and leveraging the insights and tips provided above.
