Aussie tradies are changing the way they do business as tensions rise following a string of construction companies shutting up shop.
New research from tradie marketplace hipages revealed that tradies are more uncertain about growing their customer base than ever before, with 78 per cent of respondents worried about their project pipeline.
But who can blame them? Thanks to material shortages and a general hike in the cost of doing business, recent figures from ASIC estimate that the last 12 months have claimed over 3000 construction company scalps – more than any other industry in the country.
And according to tradies who soldiered through the rocky COVID pandemic era, like Kubra Building Services owner Martin Nguyen, nailing down high-paying construction gigs isn’t as simple as it used to be either.
“It’s harder to line up jobs now — where homeowners used complete big renovations like $40,000 bathroom upgrades without hesitation, they’re being more selective with their projects,” he told Build-it.
“We’ve also noticed lead flow dropping, so tradies are getting creative to stand out.”
However, while headlines would have you believe the Aussie building boom is dead and buried, hipages Chief Revenue Officer Robert Tolliday claims that this current market is actually offering up a huge opportunity for tradies to bring in the cash – if they’re willing to make a few changes.
“Fortunately, the demand for work still exists within the home improvement space. Our data reveals that nearly half of Aussie homeowners are looking to spend $7,000 or more on their homes in the next 12 months,” he told Build-it.
“The home improvement market is set to take off, with more homeowners deciding to renovate instead of moving. This represents a huge opportunity for tradies.”
For tradies looking to capitalise on the incoming renovation boom, Tolliday said making a few simple tweaks to business offerings, such as increasing business hours, hiring specialist tradies and apprentices and expanding service areas could go a long way to locking down more work.
“For example, over a quarter of trades surveyed (26 per cent) say they would consider taking on more eco-friendly projects to meet the growing demand for sustainable homes,” he told Build-it.
“They’re also embracing online platforms like hipages to connect with homeowners and boost their job pipeline.”
But above all else, the most important change a tradie business can make in 2024 is to become “agile” to meet the needs of their specific customers and carve out a niche of their own in their area.
“Tradies who can explore new opportunities will find it easier to keep steady work coming in,” Tolliday told Build-it.
“Tradies who can be flexible are in a great position to take advantage of this. With the number of projects expected to grow, it’s all about building strong relationships – being reliable, easy to communicate with, and delivering great service.”
It might sound simple, but for tradies like Mr Ngyuen, these small tweaks have apparently had a big impact on putting his construction company back on top.
“We’re having to take a more proactive approach. For example, we’re redoing our website and thinking about marketing for the first time to prepare for the future,” he told Build-it.
“Tradies are expanding their service areas, working longer hours, and offering new services. Customer service is also huge now – we try to lock in jobs within 24-48 hours so we don’t risk losing them, whereas homeowners used to wait for you.
“The quicker you can get back to them and get the job started, the better. We’re definitely seeing that all these changes are making a real difference in bringing in work and keeping clients happy.”
