As featured in Breaking Ground magazine, January/February 2025 edition.

Continual growth is a cornerstone of success for construction companies. Growth ensures competitiveness, enables adaptation to market shifts, and solidifies long-term viability. Yet not all growth is beneficial. Companies chasing expansion without a clear plan—simply working harder and taking on more projects—often end up overextended, compromising quality, profitability, and reputation. Sustainable growth requires intentionality. It must be guided by a strategic vision, executed through sound plans, and aligned with the company’s core strengths. This article will explore five proven strategies for achieving the kind of smart, healthy growth that positions your construction firm for enduring success.

Brand Management: Standing Out in a Crowded Market

The construction industry is fiercely competitive, and failing to differentiate your brand is a recipe for irrelevance. Without a unique value proposition, your company risks blending into a sea of sameness, leaving potential clients with no compelling reason to choose you over your competitors. Strategic differentiation is critical, particularly in bidding environments where standing out can mean the difference between winning and losing a project.

• Specialize to differentiate: Specialization is key to distinguishing your brand. Companies leading in smart building technology or modular construction can command premium pricing due to their expertise. Modular construction, for instance, has gained notoriety for its potential to significantly cut timelines and costs, qualities particularly highly valued in sectors like healthcare and education. By carving out a niche, your firm establishes itself as an expert, ensuring clients choose you for your proven capabilities.
  
  
• Identify and amplify your strengths: The foundation of differentiation lies in identifying what sets your company apart. Perhaps it’s that expertise in modular construction, your reputation for delivering complex projects ahead of schedule, or the ability to integrate sustainable practices into designs. Whatever they may be, these distinctive strengths should form the cornerstone of your brand. For example, a firm specializing in healthcare facility construction could emphasize its understanding of medical office operations, regulatory compliance, and patient-centric design.
  
  
• Positioning in high-growth niches: Growth opportunities abound in sectors like renewable energy, healthcare, and urban housing. Aligning your company’s services with these high-demand sectors can drive sustainable growth. For example, firms specializing in data center construction can benefit from the increasing demand for cloud infrastructure. Similarly, urban housing projects addressing affordability issues in metropolitan areas like Pittsburgh or Philadelphia are in steady demand, offering long-term opportunities for firms with expertise in cost-efficient housing solutions.

Marketing as a Growth Driver

For many construction firms, marketing is treated as a nonessential expense. However, in today’s market, strategic marketing is a necessity. It not only builds awareness but also positions your company as a trusted partner, paving the way for business growth.

• Effective marketing tactics: Begin by showcasing your successes. Client testimonials and case studies are powerful proof of your firm’s capabilities. For example, a project summary that highlights your ability to complete a complex commercial facility under budget and ahead of schedule can resonate strongly with prospective clients.
  
  
• Targeted outreach: Developing a “dream client” list—identifying ideal clients aligned with your strengths—is a highly effective marketing strategy. Tailor your campaigns to engage these potential customers. For instance, if your expertise lies in renewable energy, your marketing materials should feature completed solar or wind projects, underscoring your leadership in the field.
  
  
• Networking and visibility: It is also important to participate in industry events and trade shows. These platforms allow you to showcase your expertise, build relationships, and stay updated on market trends. Sponsoring relevant activities or speaking at events further solidifies your company’s presence and credibility in the industry.

Investing in Your Sales Team

A capable sales team is vital for sustaining growth, yet many construction firms fail to invest adequately in this area. According to a survey performed by Associated Builders and Contractors (ABC), ABC member contractors invested an average 7.4 percent of their payrolls into workforce education in 2021, the vast majority of which, 90 percent, in safety and craft education. It does not appear, however, that much value is placed on educating and training employees how to identify and close new business as most training budgets are allocated to technical skills, leaving a significant gap in business development capabilities. Having your “boots on the ground” learn these sales skills can dramatically increase new business generation.

• Building a sales culture: Begin by training customer-facing employees to identify and seize business opportunities. Equip them with the tools and skills necessary for effective client engagement. For instance, a project manager with a strong understanding of your firm’s value proposition can be a powerful advocate during client interactions.
  
  
• Incentivizing sales success: Clear goals coupled with meaningful incentives can motivate your team to prioritize business development. Financial bonuses tied to securing new projects or expanding existing accounts encourage proactive sales efforts.
  
  
• Hiring sales specialists: If your existing team lacks sales expertise, consider hiring dedicated sales professionals. Their focused approach can significantly enhance your ability to identify and convert high-value opportunities.
  
  
• Leveraging technology: Implementing a robust Customer Relationship Management (CRM) system can streamline your sales process. By centralizing client information, tracking interactions, and providing actionable insights, a CRM ensures that your sales efforts are organized and effective. For example, tracking follow-ups with prospective clients prevents missed opportunities and strengthens relationships.

Maximizing Value from Current Clients

In the construction industry, relationships are everything. Trust and goodwill built through successful projects are invaluable assets. Yet, many firms fail to leverage these connections for repeat business and referrals.

• Proactive engagement: Make the ask! Rather than waiting for clients to return with new projects, reach out proactively. A simple inquiry such as, “What else can we help you with?” signals your interest and availability, keeping your firm top of mind for future work. This practice might seem elementary, but in my discussions with construction company owners, I’ve been shocked to recognize how often it is overlooked. If you do not make the ask, your customer might think you’re too busy for their next job or you are not interested in their work: unintended consequences of not letting your customers know you want to help them with future work.
  
  
• Requesting referrals: People buy from people. Satisfied clients are often eager to recommend your services, but they won’t always do so unprompted. After completing a project, leverage that relationship to generate new business opportunities by asking, “Do you know anyone else who might benefit from our expertise?”
  
  
• Providing continued value: Maintaining long-term client relationships requires you to deliver value consistently. Consider offering periodic consultations or sharing industry insights, like updates on new building regulations or innovations in sustainable construction, which could benefit your clients and reinforce your role as a trusted partner.

Be Willing to Get Uncomfortable

In addition to taking advantage of additional work similar to your current projects, challenge your company to grow by developing new revenue streams. Such opportunities could be more involved, both in time and in financial support, but can also lead to significant growth for those companies willing and able to make these investments.

• Self-performance vs. subcontracting: Take a look at the work you are currently subcontracting. You should be able to easily identify the trade or trades being performed most by others outside your company for work you are winning in your bids. You might have someone internally who can head a division for your company rather than subcontracting the work, or if not, you might consider hiring someone who could.
  
  
• Investigate a subscription revenue model: Challenge your current method of working with customers to identify areas where a subscription model could be beneficial. Subscription models have exploded recently in many industries, if not yet in construction. These do not fit all companies, but many niches of the construction industry can take advantage of these types of revenue models. They have several advantages, including enhancing your relationship with current customers while also providing consistent and recurring revenue streams. Identify areas such as warranty and maintenance work that can be sold on a subscription basis, and work with experts who can help you set up these types of plans.

Building a Road Map for Success

In the construction industry, growth isn’t a choice, it’s necessary for survival and relevance. However, the path to growth must be intentional, guided by strategy rather than sheer effort. By focusing on differentiation, leveraging marketing and sales, maximizing existing relationships, and trying out uncomfortable new revenue sources, your company can achieve growth that is not only sustainable but also transformative. These strategies will position your company to lead in an increasingly competitive and dynamic market, ensuring your success today and in the future.