Profit margins in the UK construction industry are slim (averaging just 1.7% in 2024). For many builders and contractors, this means the difference between profit and loss comes down to making smart product choices. From material sourcing to design details, every decision affects both costs and customer satisfaction. Here’s how builders and contractors can align product strategies with efficiency, modern methods, and market demand to keep projects profitable.
Bulk buying and beyond: Optimise material selection for cost efficiency
Materials account for a huge share of construction costs. Choose high-quality but affordable products to protect margins without compromising on standards. For example, bulk purchase bricks or negotiate long-term supply contracts for timber for substantial savings. Builders might also explore alternative suppliers or local sources to reduce transport costs. Even small changes such as switching to cost-effective insulation can add up to meaningful improvements across multiple projects.
Use modern methods of construction (MMC)
With modern methods of construction (MMC) such as modular builds and off-site fabrication, you can deliver projects faster and with fewer labour hours. MMC isn’t suitable for every scheme – for example, complex bespoke builds may still be better with traditional methods. However, it can be transformative for housing developments or commercial projects that have repeatable layouts. By reducing delays and weather-related stoppages, MMC helps builders meet deadlines and preserve profit margins.
Align product choices with market and regulatory demand
Consumer preferences are shifting. Buyers increasingly want energy-efficient homes and sustainable materials, while building regulations are tightening in the same direction. Use solar-ready roofing systems or recycled steel, for example, to align with these demands. By aligning product choices with market demand such as sustainability trends, builders not only comply with standards but also create properties that are more attractive to today’s eco-conscious market.
Doors and fixtures: Improve market appeal with strategic design
First impressions are a big factor in whether a property sells quickly or lingers on the market. Even simple design choices, such as incorporating white internal doors, can add a clean, modern finish that appeals to a wider range of buyers. Similarly, coordinated fixtures and finishes like brushed steel handles or muted colour palettes can elevate the overall perception of a home, enhancing its value without significantly increasing build costs.
Profitability through smart product choices
For UK builders and contractors, profitability is not just about getting the job done. By sourcing materials wisely, embracing modern techniques, staying in step with market demand, and enhancing design appeal, you can deliver construction projects that are both competitive and profitable.
