Earlier this month, we provided an update on 2023 construction industry trends as we look toward the midpoint of the year on the horizon. In short, it’s a mixed bag, with strong growth in late 2021 and 2022 slowing across some sectors of the market, and ongoing supply chain and labor market challenges exerting continued pressure through slow lead times, project delays, cost overruns, and more.
For the full recap on midyear 2023 construction industry trends, see here.
We dialed into these trends to share some strong strategies we are seeing leading firms use across the industry, including:
- Protecting profitability by making decisions and locking in material prices early in contracts
- Strengthening forecasting and budgeting with more accurate, up-to-date estimates that better incorporate market volatility and variability
- Leveraging technology and refining internal processes and project management to address labor crunches and boost efficiency
None of these things can happen in a vacuum, though—especially when business owners are also contending with ongoing complexity and the daily grind. What can business owners do to protect performance and navigate the continued turbulence of this year?
Protecting business performance
Key to success is having financial clarity that informs your decision-making. This means going beyond the reconciliation, record-keeping, tax mitigation, and other day-to-day functions performed by a controller—and instead seeking out high-level strategic advice.
A strategic financial partner like a CFO with industry expertise can help to:
- Provide an overview of existing industry data and trends and show how they are intersecting with your business and its performance
- Monitor indicators with trailing numbers and robust data to evaluate business performance at regular intervals
- Address process and workflow opportunities for improvement, including common cost overruns or oversights
- Perform budgeting and forecasting with accurate, up-to-date estimates that track variability and volatility
- Create financial visibility across every job and division
- Ensure ongoing clarity that improves firm efficiency and drives toward achieving record gross and net profits
To navigate today’s challenges and grow, you need the right financial partner. DAAXIT helps contractors build better businesses. By providing fractional CTO services, we create financial clarity and enhance your profitability, so you can take your company to the next level and attain financial freedom. As your partner, we’ll take you from best-guess decision-making and the daily grind to profitable growth with clarity and peace of mind.
We’re proud to share that in 2022, 100% of our clients notched record profits, with an average net profit increase of $836,000. In general, our clients achieve double the industry average net profit.
What would record profits mean to your bottom line, and your business’s future? We’re here to help you find out.