By Canadian Contractor staff
Profitability a primary concern for home builders in current climateCanadian Contractor Profitability
2023 SORCI Report confirms 63 per cent of builders generate net margins of ten per cent or less
March 28, 2023 — Builder profitability is a key concern highlighted by the 2023 State of the Residential Construction Industry (SORCI) Annual Report.
The State of Residential Construction Industry Report is prepared by the Association of Professional Builders (APB). Results are indicative of answers from 1,000 surveyed residential home builders operating in Canada, the United States, Australia, and New Zealand.
Of the 1,000 residential builders surveyed by APB, 45 per cent reported profit margins between 2.5 per cent and ten per cent in 2022. The same survey found that more than half of all respondents plan to maintain their investment in construction software to help improve business practices.
Delivering projects on budget also presented more challenges for building companies in 2022, with 38.3 per cent of projects finishing up over budget compared to 28.7 per cent in 2021.
APB works exclusively with residential home-building companies. In particular, the owners and directors of small and medium-sized construction companies who are looking to systemize their businesses, grow their margins and/or their sales revenue, and transform this industry.
This report was commissioned by Buildxact and other industry partners to gather a deeper insight into the residential construction industry and spot emerging trends in order to enable building company owners to benchmark their own businesses against industry benchmarks.