41 Construction Industry Trends From 8,462 Surveyed Builders (2026 Study)

We’ve analysed six years of data to uncover the construction industry trends, insights, and statistics that matter most for building company owners in 2026 and beyond.

Research Overview

Below is a snapshot of the residential building companies that participated in the latest SORCI study:

• The typical building company in the survey has been operating for 12 years, indicating the dataset is weighted toward established businesses rather than startups.
• Building companies that have been operating for 0 to 3 years complete an average of 5 projects per year, compared to 7 projects per year for those operating 4 to 9 years, and 9 projects per year for companies operating 10+ years.
• Gross markup generally increases with time in business. Builders operating for 0 to 3 years apply a 21% gross markup, while those operating for 4+ years apply a 25% gross markup.
• Annual revenue also increases with business maturity: companies operating 0 to 3 years generate $1.0M, 4 to 9 years generate $2.5M, and 10+ years generate an average of $3.5M.
• Owner returns follow the same pattern, with annual owner return of $237,500 for businesses operating 0 to 3 years, $303,510 for 4 to 9 years, and $440,000 for builders operating 10+ years.

Construction Performance Trends

As building companies grow, differences in performance become less about market conditions and more about how structured the business is. The following statistics show how levels of systemisation relate to markup, revenue, working hours, and owner return.

• Builders with all five core sales systems documented (sales process, scripts, charging for quotes, regular training, and an objections manual) report a median markup of 32%, compared to 20% for builders with no documented sales systems.
• Only 6.4% of builders have implemented all seven core HR and communication systems (recruitment processes, onboarding programs, employee handbooks, job descriptions with KPIs, daily huddles, weekly meetings, and formal performance appraisals).
• Builders with all seven HR and communication systems report 33% gross markups, compared to 24.1% gross markups for builders with minimal HR system implementation.
• Non-systemised builders reach a median revenue ceiling of $2.3 million, while systemised builders reach a median revenue of $3.9 million.
• Highly systemised builders report a total owner return of $490,220, compared to $235,000 for non-systemised builders, despite similar working hours.

Construction Sales Trends

Sales activity remains a core focus for residential builders, with many balancing demand, pricing discipline, and client expectations. The following statistics highlight how builders are currently approaching sales processes.

• 58.1% of builders use a documented sales process, up from 53% in 2024.
• Builders with a documented sales process reported higher markups of 26.5% versus 21% in new homes and 30% versus 20% in remodelling.
• Only 12.8% of builders use an objections manuals to handle client concerns during the sales process.
• 58.6% of builders now charge for their time during the quoting process.
• 73.1% of builders expect to sign more contracts in 2026 than in 2025.

Construction Marketing Trends

Marketing continues to play a role in how builders attract and qualify work, though adoption and investment levels vary widely. These trends show how builders are currently utilising marketing tactics.

• 58.9% of builders did not contact their database via email at all.
• Nearly one-third of builders did not post anything to Facebook.
• 29.2% of builders spent nothing on advertising.
• Builders committing 4% or more of revenue to marketing achieved peak performance with 29% gross markups and 9% net profit margins.
• Builders relying on referrals for 80%+ of leads had the lowest markups.

Construction Project & Delivery Trends

Project delivery remains one of the most resource-intensive areas of a residential building business, particularly as project values and complexity increase. The following statistics outline how builders are currently managing planning, delivery, and post-completion processes.

• Nearly 80% of projects were finished on time or ahead of schedule in 2025.
• Projects delivered on time, finished on budget 76.7% of the time. Late projects hit budget only 51.9% of the time.
• 27.7% of new home builders said that sub-contractor delays were their biggest project challenge.
• 55% of builders have a documented home handover process in place.
• 35.8% of builders signed discounted contracts for family, friends, or staff during 2025.
• Less than 10% of builders measured satisfaction using the Net Promoter Score (NPS)

Construction Technology Trends

Technology adoption continues to evolve across the residential construction industry, with builders using a range of tools to support estimating, project management, safety, and administration.

• The percentage of builders using artificial intelligence (AI) increased from 37.8% to 66.7% in the last year.
• Among builders using AI technology, reported applications include marketing (65%), client communication (60%), and sales (42.5%).
• 75.6% of builders report using a customer relationship management (CRM) system.
• 54.3% of builders reported increasing their software investment over the past year.
• 38.6% of respondents plan to invest more on software in 2026 than they did in 2025.

Construction Financial Trends

Financial management remains a key area of focus for building company owners, particularly as businesses grow in size and complexity. The following data highlights how builders are currently tracking profitability, cash flow, and financial performance.

• Builders who worked 60+ hours per week earned $15,000 less per year than those who maintained the standard 40 to 50 hours per week.
• Only 12% of builders correctly understand all four critical financial metrics, including Work In Progress (WIP) adjustments, markup versus margin, fixed expense ratios, and net profit margins.
• While 60% of builders stated they understood how to calculate WIP adjustments, 79.2% were unable to correctly explain the calculation when tested.

Construction Strategy and Planning Trends

As businesses scale, decisions around structure and long-term planning begin to influence workload, time use, and continuity. The following data shows how builders are currently approaching organisational structure and exit planning.

• Only 46.7% of builders have a documented three-year business plan.
• Builders with a documented three-year plan targeted gross markups 2% higher for 2026 than those without one.
• Only 55% of builders have implemented an organisational chart in their company.
• Builders with organisational charts save an average of 3.5 hours per week, equating to 168 hours per year.
• Only 35.2% of large builders, 21.1% of mid-sized builders, and 12.5% of small builders have a documented succession plan.
  

Construction Team & Training Trends

As building companies grow, team structure and capability play an increasing role in how much the business depends on the owner. The following data shows how builders are currently approaching hiring, onboarding, and team development.

• Only 1 in 4 building companies earning under $5M have a documented hiring process.
• At $10 million in revenue and above, coached builders generate $671,000 more in cash earnings and save 250 hours annually compared to non-coached peers.

Building Industry Outlook: What the 2026 SORCI Report Covers

The statistics above represent a snapshot of how residential building companies are currently operating across sales, marketing, project delivery, technology, financial management, and team structure.

The 2026 SORCI Report contains dozens of additional charts and data points, segmented by revenue range, region, business model, and level of systemisation.

You can download the full report by clicking the button below.