Billd has released its 2024 National Subcontractor Market Report, revealing significant insights into the financial state of subcontractors in the commercial construction industry. The report, based on a survey of nearly 700 professionals, highlights a notable disparity between subcontractors who account for working capital costs and those who do not. According to the findings, subcontractors who consider these costs achieve an average of 11% higher profits compared to their peers.
Despite these potential gains, more than half (52%) of subcontractors do not recuperate the cost of working capital. This practice poses challenges as payment timelines from general contractors (GCs) and property owners extend to an average of 57 days from pay application submission. To maintain operations and invest in growth, subcontractors are encouraged to leverage various forms of working capital.
The report indicates that 67% of subcontractors experienced revenue growth in 2023, with 41% seeing increases between 11-20%. A majority (73%) plan to expand their businesses in 2024. Those accounting for working capital costs report better relationships with GCs and have positive business growth outlooks for the upcoming year.
Chris Doyle, founder and CEO of Billd, stated: "It is our mission to empower subcontractors to do the best work of their lives. Our market report is focused on highlighting subcontractors’ biggest opportunities and challenges from the front lines of the commercial construction industry."
Billd aims to raise awareness among subcontractors about financing options tailored specifically for them. Many currently use non-specialized financing or deplete cash reserves for growth funding. Billd provides bespoke financing solutions and advocates for subcontractor needs by offering flexible credit lines suited to industry payment standards.
For further details on Billd’s offerings or access to the full report, visit www.billd.com/2024-market-report.