Tag Archives: big builder

2016 Housing Leadership Summit by Hanley Wood and Builder Magazine

The 2016 Housing Leadership Summit promises big-picture, forward thinking from exciting speakers ranging from quarterbacks to CEOs. With an uncertain outlook for 2016, industry leaders are challenged to plan further down the road. This year’s theme of “Leading Change: A Focus on Agility in a Fast Moving-Target Housing Market” suggests what leaders already know – the best builders need to change with the market, and the market is not sitting still.

Builders hoping to climb the 2016 Builder 100 list, released this week, will congregate next week in Dana Point, CA. As the technology sponsor of the Housing Leadership Summit for three consecutive years, we are consistently fascinated by the conversations taking place at this event. With our unique position in the industry, we introduce builders in similar markets and we are consistently amazed by the amount they are willing to share – to help each other improve.

Last year’s event in Miami featured statistics, roundtables, events, speakers, discussions, panels, and even a shark tank. Metrostudy presented encouraging industry statistics, building on the strong housing market foundation: strong employment, marriage and birth rates. Key statistics on the millennial generation helped builders understand a confusing market segment.

The Housing Leadership Summit has no comparison. The event brings together industry leaders in a setting that promotes discussion, sharing and learning. If you have never before attended, register now or consider the event for 2017!

2016 Housing Leadership Summit
May 14-16
The Ritz Carlton Laguna Niguel
Dana Point, California

If you are attending the 2016 Housing Leadership Summit and you would like to meet with our team, please send us an email. We would be happy to arrange a time that works best for you.

Images from the 2015 Housing Leadership Summit

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Celebrating Excellence in Home Building

Celebrating Excellence in Home Building

As the industry counts down the days to the announcement of the 2016 Builder 100 and Next 100, Builder Magazine is teasing the list with insights into the builders making headlines. Last year, we looked at Builder 100′s Top 25 Over Five Years. Here, we have compiled all of the teaser articles for your convenience — and stay tuned for the May issues of Builder and Big Builder to hit the newsstands.

HIGHLIGHTS

From Boom to Bust and Beyond
Ten years later, the Builder team looks back at the Builder 100 and the Next 100 lists, tracking the drastic changes to the housing industry over the past 10 years.

Entry Level Makes a Comeback
After four consecutive years of decreases, entry-level home starts have risen 25% year over year. Starter homes are not dead!

The 10 Fastest-Growing Private Companies
With capital constraints looming, private homebuilders rarely make large gains in the Builder 100 list. This year was different.

The 10 Fastest-Growing Public Companies
The market was hot for smaller public builders in 2016. The highest sales increases went to comparatively small builders this year…

Who Left the List?
All news is not good news: some builders dropped off the list in 2016, and acquisitions definitely helped.

The Top 25 Private Companies
Some surprising year-over-year increases (and decreases!) including a 27% jump YoY by DSLD Homes of Denham Springs, LA.

The Next 100
The threshold for joining the Next 100 list grew this year – 120 closings were required for the number 200 spot. And yet, 15 new builders joined the list in 2016.

The Builder 100
Nine builders were able to join the Builder 100 list for the first time in 2016, some created by mergers, and some jumped up from the Next 100 by sheer numbers.

What Builder 100 Means
Combined, the top 200 builders generated $99.3 billion in revenue through 2015, including a 6% increase in closings and a 15% increase in revenues.

MetroStudy Data on the 2016 Builder 100 and Next 100

Click the image above for an interactive model. Courtesy: Metrostudy.

 

BUILDERS

Six Firms that Climbed the List
Read the success stories of six builders that surpassed expectations to deliver incredible growth in 2015. These companies span the country and the market. Some are large and some are smal, but all delivered this year.

The Bozzuto Group Hones in On Young Buyers
Trumark Cos.’ Strategic Land Acquisitions Pay Off
A Focus on Profit Benefits HHHunt Corp.
Edge Homes’ Good Reputation Spurs Growth
No Shortage of Labor for Dallas’ Bloomfield Homes
Taylor Morrison Finds Success with Active Adults

Meet the Fastest-Growing Private Builder in the Country
Wade Jurney Homes shook things up in 2015 with a focus on first-time homebuyers, and they brought their model homes directly to the consumer. It worked.

Introducing the Fastest-Growing Builder on the Next 100 List
Level Homes is an up-and-coming builder who joined the Next 100 list for the first time in 2014. Since then, a focus on expansion to new communities in new markets has driven the company to this enviable position.

 

Congratulations!

The Constellation Team congratulates all builders named to the 2016 Builder 100 & the Next 100. As the housing market continues to march forward into the black, we are thrilled to see builders innovating to stand out from the competition.

Each homebuilder is unique. There is no one-size-fits-all approach to join or climb the list. Only with careful consideration of local markets, effective application of organizational strengths, and a commitment to operational excellence can builders hope to gain against their competitors. The Builder 100 list is not a snapshot of the market — it is a constant battle for market share.

ASK US: how we can help you outpace your competition next year.

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BUILDER 100'S TOP 25 2014

An excerpt from BUILDER 100′s Top 25 Over Five Years…

Tri Pointe Group made the most dramatic leap from No. 156 in 2013 to No. 17 this year, reporting a 575.38% change in closings: 459 closings in 2013, and 3,100 in 2014 (the biggest increase y-o-y in BUILDER 100 history). Century Communities was also one of the fastest-growing builders year-over-year with a 278.49% increase in closings, jumping from No. 96 to No. 24 on our list. The only other two newcomers to the top tier for this year’s list were Brookfield Residential Properties (No. 21), and LGI Homes, Inc. (No. 23), jumping 32 and 11 slots, respectively.

Nineteen builders have retained their position in the top tier of the BUILDER 100 for the past five years, although there was some notable shuffling in the ranks—Taylor Morrison jumped from No. 14 to No. 7 this year, and Habitat for Humanity slid five slots from No. 10 to No. 15. Two old-timers got bumped in 2014 after six consecutive years in the top tier—Perry Homes and The Drees Co.

Continue reading BUILDER 100′s Top 25 Over Five Years

Our homebuilding partners join and climb the BUILDER 100 list faster than their peers. Ten of the top 25, and 40% of the top homebuilders on the Builder 200 list trust Constellation as their software partner.  Allow us to show you why.

BUILDER 100'S TOP 25 OVER FIVE YEARS

Image: Hanley Wood for BUILDER Magazine. Click for the full article and interactive bump chart.

See also: BUILDER 100′s Fastest-Growing Builders. These 10 building firms had the most year-over-year growth than any in the country.

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The 2016 Housing Leadership Summit takes place May 16-18 in Dana Point, CA. Registration is OPEN. Visit www.housingleadershipsummit.com to learn more and to register.

Big Builder Panel - 2015 Housing Leadership Summit

Big Builder Panel CEOs (L to R): Scott Stowell, Standard Pacific Homes; Eric Lipar, LGI Homes; Doug Bauer, TRI Pointe Group; Frank Anton, Hanley Wood.

The 2015 Housing Leadership Summit came to a close yesterday in a flurry of statistics, roundtables, events, speakers, discussions, panels, and even a shark tank. Turnberry Isle, Miami served a gorgeous backdrop to three days of engaging sessions with the top builders in the country. Optimism for the industry is appropriately high for the coming year, and that energy could be felt in every session.

That optimism stems from the industry statistics shared by Metrostudy: a 50% increase in starts, and a 30% increase in prices since last year. The ingredients for a successful housing market are present: Americans are employed, getting married, and having babies. Entry-level homes from builders such as LGI Homes and D.R. Horton are filling a real need in today’s marketplace.

The feel-good moment of the week was the presentation of the 2015 Hearthstone BUILDER Humanitarian Award for the 16th consecutive year. The award honors builders who have demonstrated a lifelong commitment to making their communities a better place to work and live. This year’s award was presented to Dan Ryan, CEO and President of Dan Ryan Builders. Among the numerous and various ways Ryan gives back, he recently travelled with friends to the Dominican Republic to build bleachers for the soccer field at an orphanage – working with the children to teach them building skills. When asked about his need to give back, he recalled his father:

Dan Ryan - 2015 Hearthstone BUILDER Humanitarian Award Winner

“My giving philosophy is an extension of my dad’s philosophy, which is: ‘Give back to those who are in need.’ It’s extremely important for me to give back.”

 

The Constellation Team is in awe of Dan Ryan and his philosophy. Congratulations to a worthy recipient.

The 2015 Housing Leadership Summit was a huge success, and we were thrilled to once again be the event’s digital sponsor, providing much-needed wifi and other technology goodies to the attendees.

As a sneak peek, below are some statistics on the much-discussed millennials market segment. The research below, from Metrostudy and The Demand Institute, should shed some light on how to approach this segment in your market.

Thank you to all attendees; we look forward to seeing you next year!

 

2015 Millennial Statistics (now the largest buyer segment!)

  • 37% live in multigenerational households (parents move in with them)
  • Believe housing is an excellent investment – only 16% believe they will not own a home
  • 69% would consider a lease to own approach – financial limitation is the main reason they aren’t buying
  • 71% want a home they can personalize
  • 35% are likely to rent at least a portion of their home
  • Parks, grocery stores, family friends, employment, schools need to be in close proximity (but a short drive is OK)
  • Quality construction, low maintenance, and storage are important features
  • Motivated by outdoor space, building equity, and living spaces
  • Four basic needs: money, health, time, and technology
  • The American Dream is still alive – owning a home is still a goal and an accomplishment

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BIG BUILDER: Four Live-or-Die Dimensions

You can’t manage what you can’t measure; you can’t improve what you can not recognize.

An excerpt from Fletcher L. Groves, III via Big Builder…

Over the years, I have learned to reduce everything to its essence. Improving operating performance and business outcomes comes down to getting the job done in four critical areas: (1) developing a strategic and marketing discipline; (2) having a clear perspective towards how value is created; (3) creating a business context in which everything makes sense and generates the right sense of urgency; and (4) developing a focus on managing operations and solving problems as a system.

…a Strategic Discipline.
…a Horizontal Perspective.
…a Business Context.
…a Systems Focus.

…continue reading via Big Builder.

Before we begin implementing software, we sit down with homebuilders to plan how their software will impact their business, and vice-versa. We call this a business process review (BPR), and it sounds a lot like Groves’ step 4. With your strategic discipline, horizontal perspective and business context in mind, we take a deep dive into your current processes within the framework we have developed over years of working with large homebuilders.

The first step in a traditional BPR analysis is to define all projects expenditures, creating a structure to collect and evaluate costs, making sure that no elements are overlooked. Similarly, the BPR analysis creates a framework for understanding and quantifying the potential benefits that a solution can deliver. Many believe that it is too difficult to quantify potential benefits, and therefore avoid evaluating their processes. However, by decomposing the potential benefits of savings, and tallying the business processes researched into non-denominational units of effort (Effort Units), it becomes easier to uncover potential gains, and begin the quantification process.

Request a consultation, a demonstration, or a full business process review.

 

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