Darren Pawski

Every industry has its own benefits and challenges that players in it must be prepared to face head on. Construction is one industry that has grown steadily in the last two or three decades. As the construction business grows, the number of contractors or construction companies has also grown as well, making it highly competitive. This means that every company needs to formulate its own competitive advantages to win projects and satisfy as many customers as possible. Most construction companies have become ultra-specific with the services they offer and before you understand the things that are making the industry ultra-competitive learn why some are becoming ultra-specific. 

Being Ultra-Specific with Your Construction Business

Some companies in the construction industry prefer working under a specific business niche, and if they do several niches, they keep their niche as small as possible. Businesses that specialize in one niche are known to make more money as compared to the ‘Jack of all trades’ because people perceive the latter as unqualified in some services. In case you provide several services, it is good to have different brochures or even completely separate marketing plans for different services rather than having a generalized one telling potential customers that you are good at everything. Your website should have a separate page for different services as well. Consumers tend to trust people who provide specific services and services related to their main niche. For instance, if you specify in constructing waterfront properties, you can also add dock construction as your other specialty, and it will act as an added advantage. Again, since the construction industry has become very competitive, it is wise to specialize in one niche and then make sure you differentiate your services and uphold quality. Most customers will consider you when they need that specific service because they know you will do it best. 

Things That Make the Construction Industry More Competitive

Four main trends are making the construction industry ultra-competitive, and it is good that every company respond to these trends to remain relevant and competitive. The trends come with both opportunities and challenges. 

• Customers and The Market

Most construction companies in the UK and US are highly fragmented, and this hinders them from fully embracing innovation and entrance into foreign markets. There are numerous emerging markets for construction businesses across the world, but due to changes in technology and new needs of customers, only a few companies will make it past the success line in these markets. This means that those companies that can adapt to new business models in other places will be able to penetrate the new markets. In this case, every construction company should be prepared to take advantage of the available growth opportunities but at the same time be ready to take responsibility. It is important to have unique value propositions over other companies to help win with new opportunities. 

• Societal Needs

The global population is increasing every year, and this means that the need for affordable housing is rising as well. Most people live in urban areas, and due to space constraints, the construction process can be very challenging. There are also special accommodations required in buildings that accommodate aging or ailing citizens. It’s not all companies that can adapt to these needs, but those that can, are capable of getting more customized projects to serve all people based on their needs. Fulfilling societal needs also includes using materials that are safe and friendly to the environment. For instance, most people investing in waterfront properties will need you to use durable building materials for the main house and reliable dock accessories for the decking project. 

• Sustainability Needs

Sustainability has become a requirement in all industries, and construction is not left behind. Those companies that can achieve sustainability goals have a competitive advantage over those that are not because people will trust them more, and they will have fewer or no issues with the authorities. The industry produces a lot of waste, and there is a high level of energy consumption. This has led to the need for green construction whereby companies are using renewable construction materials and renewable energy such as solar, wind or geothermal energy. For instance, if you specialize in dock construction, the dock accessories and materials that you use should be environmentally friendly to achieve sustainability goals. Again, for resiliency, most construction companies are focusing on addressing some natural calamities such as flooding, earthquakes, and hurricanes. If your company can prove their ability to mitigate solutions in areas that are prone to such hazards, it will act as a competitive advantage because either way, buildings are required in those areas too. 

• Adaptation to Construction Technologies

There are numerous changes in the construction industry thanks to growth in technology, and these require every company in the industry to adapt to them for efficiency. For instance, the coming of 3D printing technology has helped in the creation of purpose-built shapes that are only possible through this method. Also, construction companies are using online marketing strategies to differentiate themselves from other players in the industry. The more a company can embrace innovation the more profitable and competitive it becomes.