33 Construction Industry Trends From 1,817 Surveyed Builders (2024 Study)

1,817 builders across four countries completed over 115 detailed questions about the inner workings of their building companies.

We’ve crunched the data and unearthed all the construction industry trends, insights, and statistics you need to know to run a better building company in 2024 and beyond.

All of it is packaged up in a single report…

The State of Residential Construction Industry (SORCI) Report 2024 reveals critical building industry data that is shaping the landscape for building company owners and provides a construction industry outlook for the future.

With a keen focus on sustainable growth, technological advancement, and overcoming operational challenges, the report offers a roadmap for navigating the complexities of the residential construction sector.

If you’re looking for a way to benchmark your building company against others or a competitive edge on where to invest your dollars this year, keep reading to discover the biggest insights from the 2024 SORCI Report.

Research Overview

Below is a breakdown of the building company owners who participated in the 2024 SORCI study:

  • 1,817 building companies were surveyed from Australia, New Zealand, the United States and Canada at the end of 2023.
  • 63.1% of the respondents focus on new homes, while 36.9% focus on large-scale renovation projects.
  • Over four times as many builders using fixed-price contracts were able to apply a markup of 33%-plus compared to builders using cost-plus contracts.
  • 48.1% of all building companies involve or employ family members.

Research Overview-1

Construction Sales Trends

New construction sales were hard to come by in 2023, with many builders finding it hard to find and close quality leads. Here are the key building industry trends when it comes to sales:

  • Only 43.9% of builders have a documented sales process.
  • 65.4% of builders without a documented sales process are unaware of their net profit margins.
  • Only 45.6% of builders charged for quotes in 2023, down from 52.2% in 2022.
  • 86% of respondents struggling with closing sales do not have an objections manual.
  • 48.7% of builders rely on referrals for over 50% of their sales.
  • Only 9.4% of respondents across all countries expect tougher times ahead, compared to 20.4% last year.

Sales Trends

Construction Marketing Trends

Despite the evidence suggesting that builders investing in marketing are able to charge higher margins on their jobs, it is still highly underutilised in the industry. Here are the latest construction marketing trends for 2024:

  • 45.9% of building companies identified generating quality leads as their biggest marketing challenge.
  • 43.5% of builders admitted to never posting on Facebook.
  • Builders who post at least 12 articles annually show significantly higher markups (33%+) compared to those who only contribute, at most, one article a year.
  • Only 45.4% of builders use a Customer Relationship Management (CRM) software.
  • The most popular CRM systems among builders were Buildertrend (13%), followed by Houzz Pro and Hubspot (12% each).
  • 38% of respondents claim they do not engage in paid advertising campaigns.
  • 42.2% of builders outsource their Facebook advertising campaigns and 60% outsource their Google advertising campaigns.
  • Builders allocating 3% of their revenue to marketing achieve net profit margins of over 15%.

Marketing Trends

Construction Project & Planning Trends

Off the back of severe project delays and logistical nightmares during 2022, 2023 saw more projects completed on time. But it wasn’t all clear sailing. Here are the construction project and planning trends for 2024.

  • 28.6% of projects faced delays in 2023 due to subcontractor-related challenges.
  • 12.3% of builders are now working over 60 hours weekly.
  • 64.1% of respondents stated that they didn’t have a business plan in place for the next three years.
  • Over 50% of surveyed companies have a documented home handover or a final walkthrough process.

Project Trends-1

Construction Technology Trends

For building company owners, investing in technology is no longer optional but a critical factor for business success and customer satisfaction. Here are the top construction industry technology trends for 2024:

  • Only 12.5% of builders used spreadsheets for project management in 2023, down from 16.9% in 2022 and 21.6% in 2021.
  • 43.8% of builders increased their budget for software in 2023, while only 6.9% reduced it.
  • 31% of builders expect to increase their investment in technology in 2024.

Technology Trends

Construction Financials Trends

Unfortunately, financial education in the residential construction industry is still far too low, with many builders not tracking or understanding their numbers. Here are the latest financial trends in residential construction:

  • In 2023, 18.3% of builders earned salaries exceeding $180,000, with the highest likelihood in the United States and the lowest in Canada.
  • The industry is optimistic about 2024, with 76.9% of builders expecting growth and 88.9% in New Zealand anticipating increased revenue.
  • Only 52.3% of builders produce monthly financial reports, and a mere 7.6% understand how to accurately calculate Work in Progress (WIP), highlighting a need for improved financial management practices.

Technology Trends-1

Construction Team & Training Trends

One of the pressing challenges highlighted in the report is the skilled labour shortage, affecting a large portion of construction companies. This issue is exacerbating project delays and increasing labour costs. Here are other critical trends in construction when it comes to teams and training:

  • Only 20.6% of builders have a formal process for hiring, indicating a lack of structured recruitment strategies.
  • 81% of builders spend 6 hours or less per month on personal development, showing a decline in commitment to self-improvement.
  • Just 39.6% plan to increase their training investment in 2024, compared to 76.9% of builders forecasting business growth.
  • Builders undergoing business coaching or mentorship are more than twice as likely to achieve a 33%+ markup on jobs, with a 120.4% increase in those reaching the industry benchmark for gross profit.

Financials Trends

Building Industry Outlook: A Resilient Future

The 2024 SORCI Report paints a picture of an industry at a crossroads, with the path forward marked by innovation, sustainability, and strategic adaptation. 

For building company owners, the insights from this study are not just data points but actionable intelligence that can guide decision-making, strategy development, and long-term planning.

Want to discover over 70 more construction industry trends and statistics that could help your building company stand out from the competition this year? Download the full 2024 SORCI Report from the link below.

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