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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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The 2015 Public Builder Report Cards

In 2014, public builders continued to see their balance sheets improve and sales grow.

While the market may have closed for new public home builders over the past year, 2013′s burst of activity introduced five new companies to the latest BIG BUILDER report card.

In 2014, it was good to be big. While many smaller private builders were struggling to secure both capital and land—the basic elements of growth in the business—the big were getting bigger. Whether they were looking for land or an entry point into new markets, the publics were aggressive.

But public growth wasn’t measured in number of acquisitions. According to stats compiled by American New Homes Group president Jamie Pirrello and his team of Robert Yemola, Kylie Berrena, David DeFreest, and Christine Zoerner—members of the Accounting, Business, and Economics Department at Juniata College in Huntingdon, Pa.—the publics grew in a lot of other metrics in 2014.

For the full list of grades and comments, continue reading via builderonline.com

40% of the top homebuilders on the Builder 200 list trust Constellation as their software partner. We’ll show you why.

Hanley Wood: 2015 Public Builder Report Cards

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The New Home Company - Larry Web and Team

The New Home Company Team: (from left), Fabienne Smolinski, VP, People, Larry Webb, CEO, Joan Marcus-Colvin, Senior VP Marketing & Design, and AJ Jarvis, President, Southern California. Photo: Mike Cunningham, The New Home Company (via builderonline.com)

Who are we? and What do we want to be?

Every member of The New Home Company team asks themselves these two simple questions when they step into the office or the job site. The answers are the same: We are how and where our customers want to live. And we want to continue to be that.

For CEO Larry Webb and the management team at The New Home Company, these daily questions drive a culture that has created one of the fastest-growing public builders of the past decade. Impressive, especially for a company that incorporated in 2009.

These two questions drive The New Home Company’s culture in everything they do: across divisions of hierarchy, geography, discipline, and focus, these questions pull everyone together. They fuel the team and focus them on a common goal. They are measurable and actionable. These are the keys to authentic corporate culture in any industry – and The New Home Company is a perfect example.

Continue reading about The New Home Company’s culture via builderonline.com.

 

The New Home Company has been a Constellation partner since 2010, utilizing our NEWSTAR Enterprise software solution to manage their business behind-the-scenes. From sales management to home production to customer relationships, NEWSTAR empowers The New Home Company to communicate and manage projects across their functional teams and construction divisions. Ask us how.

The New Home Company was recently recognized in Inc. Magazine Founder’s 40: some of he fastest-growing public companies that continue to act like startups.

Join The New Home Company’s management team at the 2015 Housing Leadership Summit May 11-13 in Miami. In attendance: Larry Webb, CEO, Fabienne Smolinski, VP, People, Joan Marcus-Colvin, Senior VP Marketing & Design, and AJ Jarvis, President, Southern California. Constellation is the digital sponsor of the event, and our management team will also be in attendance – join us!

The New Home Company was recently recognized at the 2015 Eliant Homebuyers’ Choice Awards. CEO Bob Mirman presented The New Home Company with “The Eliant” award for Best Overall Customer Experience for a multi-divisional builder. Constellation was a proud gold sponsor of the Homebuyers’ Choice Awards. Congratulations to The New Home Company and all the award winners.

The New Home Company rang the closing bell at the NYSE on February 5, 2015. NEW HOME (NYSE: NWHM) became a publicly traded company in January 2014.

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