SANTA ROSA, Calif. -- Nearly two-thirds of homebuilders (65 percent) say they need to improve their job profitability, and 57 percent say they need more accurate estimating processes. How will they make those improvements? With new software.
That's according to research from Intuit, a creator of financial software for homes and small businesses. The study reports that homebuilders are expecting to be using new software in the next three years to improve profitability and their relationships with customers. Moreover, use of integrated business management and Customer Relationship Management (CRM) software is expected to grow as builders try to save money.
In the study conducted with 500 contractors, three-fourths say they currently use stand-alone accounting software to manage their businesses, but they expect that number to drop significantly over the next three years while their investment in integrated business management software nearly doubles. CRM software is currently only used by 19 percent of contractors, but the investment in that management tool is expected to rise to 29 percent in three years.
When asked why they are investing in new technology software, nearly a third of contractors say that although their current equipment works well, they want to save additional time and/or money. The industry average job profitability is reported at 16 percent, but Intuit sees a huge opportunity to increase that number through an expected double-digit growth in management software.