Preparing Your Business for Increased Demand
With the anticipated remodeling surge in 2025, home improvement businesses need to be prepared operationally to handle an influx of projects without compromising on quality or customer experience.
Effective operational preparation means strengthening supply chains, investing in skilled labor, optimizing project management processes, and ensuring the business infrastructure can support increased volume.
Here’s how home improvement companies can get ready for the demand wave:
Strengthen Supply Chain and Inventory Management
Build Relationships with Key Suppliers
Strong supplier relationships are crucial for securing high-quality materials at competitive prices, especially as demand rises. Regularly communicate with suppliers to stay informed about inventory availability, pricing trends, and any potential supply chain disruptions.
Consider establishing long-term contracts or preferred partnerships with suppliers who can guarantee priority access to materials, which is especially useful during peak demand. Diversifying suppliers is also wise—having backup sources for essential materials, such as lumber, paint, or fixtures, can prevent project delays.
Forecast Material Needs and Order Early
To avoid shortages, home improvement businesses should forecast their material requirements based on anticipated project volume. Review historical data from previous busy seasons to identify trends in materials most commonly used and place bulk orders where possible.
Pre-ordering materials like popular tile patterns, cabinetry, or fixtures well ahead of time can prevent project delays, secure better pricing, and ensure that commonly requested materials are readily available.
Invest in Inventory Management Software
Inventory management software can help track stock levels in real-time, reducing the risk of running out of essential materials mid-project.
Modern inventory systems can provide automated alerts when stock is low, allowing for timely reorders. Additionally, they can integrate with project management systems, providing an overview of material usage across active projects, and giving insights into future needs.
This technology helps avoid costly delays, keeps clients informed, and allows for seamless project continuity.
Expand and Train Your Workforce
Hire Skilled Labor Early
With labor shortages affecting many skilled trades, securing a reliable workforce in advance is essential for handling increased project volume. Start recruiting skilled labor early to avoid a scramble for talent when demand peaks. Focus on trades that are integral to home remodeling, such as carpenters, electricians, plumbers, and painters.
If hiring permanent staff is a challenge, consider partnering with staffing agencies that specialize in skilled labor or establishing a network of trusted subcontractors who can step in when needed.
Offer Training and Development Programs
Regular training programs can ensure that your team remains up-to-date with the latest techniques, materials, and safety protocols.
By investing in training, you not only improve the quality of work but also demonstrate a commitment to professional growth, which can help attract and retain top talent. Training programs on customer service and project management skills can also improve client satisfaction and efficiency.
For specialized services, such as smart home technology installation or sustainable building practices, providing targeted training can make your team more versatile and able to meet diverse client requests.
Implement a Retention Strategy for Skilled Workers
In a competitive labor market, retaining skilled workers can be as important as hiring them. Offering competitive wages, benefits, and performance bonuses can improve job satisfaction and loyalty.
Additionally, creating a positive work culture, recognizing hard work, and providing career advancement opportunities can help retain valuable employees. Retention strategies reduce turnover, ensuring that your team remains stable and experienced, even during periods of high demand.
Optimize Project Management Processes
Invest in Project Management Software
Project management software tailored to the construction and remodeling industry, such as Buildertrend, CoConstruct, or Procore, can streamline operations and improve communication with clients.
These tools allow you to track timelines, assign tasks, and monitor progress from one centralized platform. With a clear overview of multiple active projects, you can better manage resources, avoid scheduling conflicts, and keep clients informed about their project status.
Effective use of project management software increases efficiency, reduces delays, and enhances client trust by keeping everyone aligned.
Standardize Processes for Consistency
As project volume increases, standardized processes help maintain quality and reduce the likelihood of errors. Develop checklists and templates for common project tasks, from initial client consultations to final inspections.
Standardized protocols can streamline onboarding for new staff members, ensure that each project is executed consistently, and allow managers to quickly assess and address any issues that arise. Clear procedures can also reduce the time spent on repetitive tasks, allowing the team to focus on high-impact activities.
Use Data for Scheduling and Resource Allocation
Data from past projects can provide insights into typical project timelines, resource needs, and peak demand periods, allowing for smarter scheduling.
By analyzing this data, you can identify optimal project timelines, allocate resources more effectively, and stagger project starts to avoid overlap that strains resources. Data-driven scheduling ensures that each project is given the necessary attention and resources, reducing delays and avoiding client dissatisfaction due to scheduling conflicts or stretched resources.
Enhance Customer Experience and Communication
Set Clear Expectations with Clients
Effective communication at the project outset sets a positive tone and helps manage client expectations. Clearly outline the scope of the project, projected timelines, pricing structures, and any potential delays due to factors like supply chain challenges.
Providing clients with a detailed timeline, explaining the steps involved, and discussing contingency plans for unexpected issues can reduce misunderstandings and foster trust.
When clients are informed about each phase of their project, they feel more confident and involved in the process.
Use Client Portals for Real-Time Updates
Many project management tools offer client-facing portals where homeowners can log in to view real-time updates, track project progress, and communicate directly with the project team. These portals streamline communication and reduce the number of update requests, allowing clients to view everything from material selections to project milestones on their own time.
This transparency and accessibility can improve the overall client experience, showing a commitment to keeping them informed and engaged throughout the project.
Solicit Feedback and Continuously Improve
Soliciting client feedback during and after projects allows you to address any concerns proactively and gather insights into areas for improvement. Consider setting up brief check-ins at key project milestones to ensure that clients are satisfied with the progress.
Post-project surveys can provide additional feedback and allow clients to share their experiences. Use this feedback to make iterative improvements to your processes, identify any recurring issues, and implement solutions to enhance the customer experience for future clients.
Prepare for Financial Flexibility and Growth
Create a Scalable Budget and Cash Flow Plan
Increased project volume requires careful cash flow management to cover upfront costs for materials, labor, and equipment.
Prepare a budget that can scale with demand, ensuring you have enough working capital to support multiple active projects. Review historical financial data to forecast anticipated costs and allocate funds for both expected and unexpected expenses.
Consider setting up a line of credit with your bank or establishing relationships with financial institutions to secure access to additional funds if needed.
Invest in Tools and Equipment for Efficiency
Upgrading or expanding your inventory of tools and equipment can improve productivity and reduce the need to rent or borrow, which can be time-consuming and costly. Assess the most commonly required equipment for your projects and determine whether an upgrade or purchase could yield long-term benefits.
For example, investing in high-quality power tools, precision measuring equipment, or specialized installation tools can help streamline workflows and ensure that teams have reliable resources to complete tasks efficiently.
Plan for Growth and Scalability
As demand increases, consider planning for expansion, whether by adding team members, opening a new location, or increasing service offerings. Scalability planning allows you to handle growth without compromising service quality.
Outline the steps needed to grow sustainably, such as determining staffing needs, planning for expanded marketing efforts, and exploring ways to automate repetitive tasks. Proactively preparing for growth positions your business to capitalize on increased demand in a way that is both strategic and manageable.
By preparing operationally in these areas, home improvement businesses can handle the anticipated increase in demand in 2025 smoothly and efficiently. Focusing on streamlined operations, customer satisfaction, and scalability will ensure businesses are not only ready to take on more projects but can also deliver high-quality work that strengthens their reputation and drives long-term success.
SensionCX, Inc. is a digital marketing agency specializing in the home improvement industry. With over 30 years of combined experience in sales and marketing for the home improvement and finance industries, we understand the unique challenges and opportunities within these sectors. We leverage our expertise to develop comprehensive digital marketing strategies that drive growth and generate leads. Our services include SEO, PPC, social media marketing, content marketing, email marketing, and web design. Let us help you reach your target audience and achieve your business goals, or get our FREE DIY Guide and learn if you can do it yourself.
[email protected] / (508) 293-5100
