Modernize surveyed over 200 contractors earlier this year to gather data and learn more about the State of the Contractor in 2022. Check out the Ebook here. This article highlights the three biggest challenges facing contractors this year and how to minimize the impact on your business: supply chain, labor shortages, and retaining skilled workers.
Supply Shortage
Suppliers say they are out of stock, and lead times are over twelve months for certain supplies. The supply shortage creates a delicate relationship between contractors and their homeowners; it is challenging to project completion dates when lead times are a year out, or unknown.
While you cannot streamline the supply chain yourself, you can proactively partner with your suppliers and customers.
You should know the lead times and price increases. It is common for building materials to increase monthly. Get new price sheets often from your supplier. Adjust your pricing to maintain your profit margins. Ask about lead times on the popular items and call different supply stores to check availability.
After you get a list of supplies in stock, share it with the customer. Many of the most popular materials are unavailable, so be prepared with close alternatives to offer the homeowner. Overcommunicate- trust and transparency are major deciding factors in a homeowner’s buying decisions.
Labor Shortages
Attracting and retaining skilled workers has been a problem in the industry for the last several decades. Younger workers enter different sectors of the workforce, while the workers who make up most of the industry are retiring. . And, of course, the pandemic made it even worse.
Not only should you focus your home improvement marketing on lead generation, but your marketing efforts must also prioritize recruiting. This strategy must be two-fold to maintain skilled, reliable crews:
- Recruiting: Proactively work on recruiting to bring in the skilled labor necessary to meet homeowners’ needs. Always be on the lookout for new team members throughout the year. Post job opportunities online.
- Retention: Be proactive about employee satisfaction. Prioritize ongoing training, pay rate increases, and good company culture. It is more effective to keep your employees than to hire and retrain new ones.
Rising Marketing Costs
The cost of marketing is getting more expensive. When your marketing costs go up, your profit margins are affected. Therefore, evaluating your Return on Investment (ROI) is critical to ensure that your marketing and lead generation efforts are paying off.
Not only is it necessary to track your spending, but make sure these marketing campaigns bring in leads that convert into customers. Improve your sales funnel and train your sales team to close more deals, making your marketing more effective.
Adapting to the Inevitable Changes
The biggest takeaway is that you must always look ahead to minimize how these challenges will impact your home improvement company. As changes happen, new opportunities arise: you have the chance to improve your marketing campaigns, work closely with your suppliers, and prepare for further changes in the industry. Consider partnering with a lead generation expert, such as Modernize, to maintain a competitive edge in the coming year.
