In any industry, market information is key. Knowing how the market is trending and what customers will desire, ahead of time, is incredibly useful information, but only if it is applied correctly. Live Oak Contracting uses the 4-C approach, which takes into account all aspects of the market, from the current business climate, customers, competitors, and our own company, when analyzing current market data and trends to accurately make construction industry forecasts.
A proper forecast starts with climate. When analyzing climate we ask, “what is the overall outlook of the current construction industry including size, growth, and market share?” This factor represents the untapped opportunity that exists within the industry. We take a serious look at political, economic, socioeconomic, and technological market factors, particularly within the lumber, copper, and aluminum markets. With this data, we are well poised to rank market factors in order of importance based on how likely an event is to occur and the potential impact it will have on the construction industry as a whole.
Within any industry, customers represent the cornerstone. At Live Oak Contracting, customers represent the vision through which we operate. Developers who seek to expand their market share turn to us because we not only understand the climate of the construction industry, we also view it through their lens. We understand that customers who want to create new urban multi-use developments are different than those who want to upgrade and renovate their existing structures. If we do not treat our clients individually, we miss an opportunity to take part in their vision and success.
Thriving contractors cannot operate with a blind eye to the competition. In order to excel and ensure long-term survival, contractors are always assessing their direct competition. What are the strengths and weaknesses, resource advantages, and personnel capabilities? By knowing what our competitors do well, we can take advantage of strengths and polish our weaknesses. Our competitors sometimes act as obstacles to our goals, but overcoming obstacles such as these can only make a company stronger.
The climate, customer, and competitors are part of our external market analysis. We can study and gather information about these areas, but they are external to our practices and we can assert no force over them to change. By using this information to turn our view inward and analyze our own company, Live Oak can then determine how to best position ourselves for upcoming opportunities. Do we have the proper personnel and practices in place to meet our customers future needs? Do we know enough about the price of lumber this year to forecast the market? In routinely examining our company’s internal readiness and workings, we remain prepared to take advantage of new trends in the ever-evolving construction industry and better serve our clients.
This is an exciting time to be part of the construction industry. In 2015 alone, the construction industry is set to expand by nine percent. Live Oak Contracting is well poised to take advantage of current and future trends in construction. If you are looking for a partner with an excellent understanding of the construction markets, contact us.