Profitable building in today’s climate? It is possible and regardless of the doom and gloom that the RBA keeps hitting our smartphones with, there’s no doubt that there’s still an overwhelming demand for new dwellings.
Consider that recent data forecasts outline a need for 130,000 new dwellings across Australia, fuelled by population growth, including in regional areas such as Hobart. It’s clearly more important than ever to keep build starts high to meet this demand while navigating the industry pressures of rising costs and supply chain issues on profitability. These are the risks that every builder must manage for profitable building.
Thomas Jefferson famously said, “With great risk comes great reward.” We would add that with great risk comes the need for solid ground.
Here’s what will help provide that solid ground and support profitability:
1. Build out contingencies
Having a plan for the ‘what ifs’ in a build, and for your business, means you’ll have the confidence to move ahead.
2. Protect your assets and what’s important to you
Heed the experts’ advice that you trust in order to make decisions for your business and personal situation. This will help provide security and minimise risk.
3. Focus on quality construction
When demand for housing is high there’s the temptation to take advantage of the volume and compete on price. But as we’ve seen across the country, the race to the bottom means there can be devastating casualties for both businesses and consumers.
4. Build out efficient processes and systems for your building company
Having a proven process from pre-construction through to construction can protect your business from risks and save you time and money.
Prepare for more complexity in Tassie builds
As the demand for more housing continues in Tassie, there’s one thing we can confidently predict in pre-construction. And that is that regulations and compliance will only become more complex. It’s another metric to consider if you’re choosing to compete on price and ensure you’re profitable.
Pre-construction building design and engineering
At HED Consulting we’ve got the design and engineering team to take care of your pre-construction processes. That means more support for you in leveraging the opportunities in the Tassie market now.
Chat to us about getting this part of your business flowing efficiently with great design, fast permits and less of the unknowns that can affect the profit of your projects. We’re ready to help support profitable building for Hobart and Tassie construction.
Contact us via email at in**@****************om.au or on 03 6146 0334
