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Builders Should Buy in Groups, Work Together to Cut Costs
In order to survive the downturn, builders should work cooperatively and buy in groups to cut costs, concentrate on building in the lower-priced sectors in their market area and upgrade their level of service, custom builder Al Trellis of Columbia, Md. said to attendees at the Custom Builder Symposium in Austin, Texas last month.
Trellis, the co-author of “Building With an Attitude!” and principal with the Home Builders Network consulting firm, said that builders will have to evolve in order to compete effectively in the industry’s new environment. Because of the economic meltdown, the credit crunch, capital requirements and wary consumers, builders will have to conduct business differently ― and more cooperatively — than ever before.
For instances, Trellis said builders will have to think and act bigger than they are. This will involve creating joint ventures and building local and regional alliances. This, he said, will help builders reduce overhead and construction costs so they can build for less, no matter what the price point of their market.
Stephen Hann, president of Hann Builders of Stafford, Texas, urged builders to develop a plan that will get them through the downturn, and to write it down.
The process, he said, will help builders determine the health of their companies and what they will have to do to work their way through the economic challenges. “It may not be pretty, but it’s always better to determine the facts rather than to hope that the problems will go away.”
Above all, Hann encouraged builders not to give up.
“When you are going through hell, keep going,” he said, quoting Winston Churchill.
While industry prospects appear bleak, Hann also encouraged builders to be upbeat about their personal lives, count their blessings, take care of themselves and “go make a difference for someone else.”
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