Building Opportunities

Market Insights
9 years ago
3 minutes

Like most years, 2014 has brought a mix of optimism and pessimism for the building and construction industry. There are significant differences across sectors, sub-sectors and geographic areas, and there is a continuation in the expected decline in engineering construction, resulting in part from reduced mining and infrastructure investments. One area that has improved and looks set to improve further is residential and non-residential construction. 

To take advantage of this positive growth, businesses in the building and construction sector need to continuously look for ways to innovate and differentiate. 

Phil Ransom, partner Assurance and Advisory, RSM Bird Cameron, said: “Productivity is a key area for improvement and most businesses need to look carefully at how they can innovate to increase efficiency and improve their competitiveness. Innovation, research and development is where companies can take the upper hand against competitors. 

"In particular, a changing consumer mindset means that most businesses can no longer wait for orders to come in, but must actively attract and chase new business and new opportunities, investing appropriately to maximise their returns.” 

RSM Bird Cameron has identified five key opportunities for building and construction companies to consider when looking for innovation pathways in 2015:

1. consider diversification; 
2. recognise opportunities for mergers and acquisitions to leverage market positioning; 
3. invest in productivity-enhancing initiatives such as new technology; 
4. review business processes to find efficiencies; 
5. innovate in businesses processes to stand out from competitors. 

These measures can carry some degree of risk if not carefully planned and executed. It is recommended that businesses obtain professional business advice before embarking on certain courses of action. 

One of RSM Bird Cameron’s clients, home building company Porter Davis, innovated its sales and customer experience process to stand out from competitors. The company opened a 2,000m2 showroom, which is the largest interior design space of its kind in Australia that is open to the public. The World of Style showroom includes fully-built rooms including kitchens, living rooms, dining areas and even an outdoor area. It lets customers literally see, feel and experience what their home could look like.  World of Style is centred around four core themes: Classic, Contemporary, Designer and Resort. Within these four broad themes, there are over 64 individual looks, making the selection process easier for customers while allowing them to express their individual style.   

Darren Goodwin, COO Porter Davis, said: “It is very important for Porter Davis to continually find ways to stand us apart from our competitors. That’s why we decided to create the World of Style. We are the first residential builder to offer such a facility and believe it will add a significant competitive advantage not to mention an exciting and innovative experience for our clients. 

“The showroom is staffed by qualified interior designers to speak with customers about their needs and preferences, helping them choose the best possible design for their new home. All fixtures and fitting are state of the art, and the experience takes customers beyond the usual process of choosing from colour boards and material samples.  It means that they can really see what their home will look and feel like”.   

About RSM Bird Cameron 
RSM Bird Cameron is the largest mid-tier accounting firm in Australia with national ownership and profit sharing and offers a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. RSM Bird Cameron is a core member firm of RSM International, the seventh largest network of independent accounting and consulting firms in the world. 

Visit RSM Bird Cameron here