National Association of Home Builders

NAHB Study Lets Contractors Compare Financial Performance Against Industry

The Cost of Doing Business Study, 2014 Edition, a national study of builders’ business practices and financial performance was recently released by BuilderBooks, the publishing arm of National Association of Home Builders (NAHB). The Cost of Doing Business Study gives builders the opportunity to see which companies earned a profit and how they did it.

This new resource provides a snapshot of builders’ profitability and expenditures by category. Home builders are given a rare glimpse at other builders’ financial books, with access to data on profitability, cost of sales and expenses from home builders across the country.

Hundreds of NAHB builder members from all regions of the country provided their past financial data using a survey instrument developed by NAHB’s Economics and Housing Policy Group. The study provides builders the opportunity to evaluate their financial performance compared with the industry as a whole, and with builders of similar type and size.

“The latest edition of The Cost of Doing Business contains a wealth of information about the residential construction industry, including detailed financial data, as well as tips and resources for builders,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “The updated study is an excellent resource, and provides builders with the chance to learn from their colleagues and compare their financial performance with others in the industry.”

Readers can see how they measure up against industry-wide averages in areas including:

  • Gross margin and net profit
  • Cost of goods sold
  • Operating expenses 
  • Financial ratios

The Cost of Doing Business Study contains useful data, analysis and guidance to help builders boost profitability, increase efficiency, set realistic budget targets and improve upon their business practices. Several categories are analyzed in the survey (volume, operation type, and land vs. no land) making it easy for builders to compare their performance against the data. More than 35 proven cost-cutting, profit-raising ideas that builders can apply to their businesses are provided.

The Cost of Doing Business Study, 2014 Edition is available only as an eBook at ebooks.builderbooks.com for $89.99 Retail or $55.99 for NAHB Members. However, limited print copies are available for purchase while supplies last ($149.95 Retail/$79.95 NAHB Member, ISBN 978-086718-729-8) at BuilderBooks.com or by calling 800-223-2665. 

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