Professional Builder’s Housing Giants report is out, not that anyone would notice unless one of them discovered a vaccine for COVID-19.
You won’t be surprised. The market share held by the top 20 grew from 20% in 2018 to 24% last year. Nos. 21 – 225 all lost market share. Builders too small to make the Giants cutoff—last year that meant less than $29 million in revenue—also slipped from 69% share to 66%.
But PB editor-in-chief Rich Binsacca makes an interesting point about second-tier builders who ranked 21 – 50 on the list. Second-tier doesn’t mean small. Neal Communities of Southwest Florida, No. 50, did slightly more than $390 million in revenue last year.
But as a group, says Binsacca, they “account for every one of the builders that have earned a National Housing Quality award for operational excellence over the last decade, and make up seven of our annual Builder of the Year honorees since 2011.”
In other words, very much like the construction supply industry. The best operators are often large, but not so large that they lose their feel for the nuances of the markets they serve.
Home building, like construction supply, is still ultimately a local business.
CLICK HERE to read the full article at Professional Builder.
Executive Council members: A spreadsheet with Giants lists from 2001 – 2020 is available on our member website. CLICK HERE and log in, then go to Documents / Industry Rankings.