Financial Records of Builders

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Although the housing collapse hit the building industry hard, some builders are managing to earn a profit in spite of the odds. By building equity, they have positioned their companies to prosper when more buyers return to the market. Builders now have an opportunity to see which companies earned a profit and how they did it, with a new publication from the NAHB. NAHB’s publishing arm, BuilderBooks recently released the 2012 edition of the Cost of Doing Business Study, a national study of builders’ business practices and financial performance.

This new resource gives home builders a rare glimpse at other builders’ financial books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country.

Hundreds of NAHB builder members from all regions of the country provided their past financial data using a survey instrument developed by NAHB’s Economics and Housing Policy Group. The study provides builders the opportunity to evaluate their financial performance compared with the industry as a whole and with builders of similar type and size.

“Builders have an excellent opportunity to learn from their colleagues and compare their financial performance with others in the industry in the latest edition of the Cost of Doing Business,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “In addition to the detailed financial data, this new resource also offers tips and detailed guidance on how to improve overall business practices and profitability.”

Readers can see how they measure up against industry-wide averages in areas including:

  • Gross margin and net profit
  • Cost of goods sold
  • Operating expenses
  • Financial ratios

The Cost of Doing Business Study contains a wealth of data, analysis and guidance to help builders boost profitability, increase efficiency, set realistic budget targets and improve upon their business practices. Several categories are analyzed in the survey (volume, operation type and land vs. no land) making it easy for builders to compare their performance against the data. More than 35 proven cost-cutting, profit-raising ideas that builders can apply to their businesses are provided.

The Cost of Doing Business Study, 2012 Edition is available for purchase here or by calling (800) 223-2665.

Soft-cover, 114 pages, $149.95 Retail, $79.95 NAHB Member, ISBN 978-0-86718-680-2.

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