There has been a great deal of discussion over the past several years regarding the makeup of the housing industry. While the manufacturers are giving the large national public builders a great deal of attention, the industry as a whole, should not lose sight of the importance of the mid-tier segment of builders. 

Collectively, mid-tier builders represent about half of the homes built in the country. Although these builders are also often leaders in their local markets, the current market conditions may be stacked more in favor of the large national builders.
However, the mid-tier segment is made up of entrepreneurs who don’t settle for market conditions: they adapt to them.
Now is the time that mid-tier builders need the support of manufacturers the most, and the time when manufacturers can establish long-lasting relationships. It's imperative for manufacturers to engage with local builders to help create awareness for their new products and create pull-through support for their channel partners.  
Below are several suggestions on how manufacturers can begin engaging with builders.

Start Marketing Again

The best way to sell your product is by sharing your story. Successful relationships begin with brand awareness. Explore new, creative ways to get your message in front of key decision-makers within mid-tier builder organizations. Now is the time to invest in marketing teams, strategies, and products. 

Make a Personal Connection

Digital marketing is an integral element in the current market. As a result, manufacturers need to consider a much more personal approach to marketing and sales. Social media, blogs, newsletters, and websites are great opportunities for generating awareness and pulling builders into the lead-nurturing pipeline. Even though the builder purchases products through a distributor, a dealer, or an installer, it is becoming more and more important for them to know that the manufacturer stands behind the product itself.

Promote and Support Innovation

The mid-tier segment of builders is the nursery of innovation within the residential building industry. These builders are constantly looking for ways to differentiate themselves from the large national builders. Additionally, mid-tier builders typically have fewer layers of management, which improves their ability to implement changes more quickly than national builders. As a manufacturer, it is advantageous to have strong relationships with this segment of builders to support their product planning, new product development, and new product roll-out efforts.
The bottom line is that the mid-tier segment of builders is the lifeblood of the industry. They build between 45% – 55% of the homes in the country, they need to differentiate themselves from the large national builders, and they understand the needs of their customers since the owners and the entire staff live in the market where they build and sell homes. As manufacturers look for new ways to improve their organizations, they should consider how best to engage the mid-tier builder segment. By doing so, manufacturers will improve their insight into the entire new home industry and will ultimately provide themselves with a leg-up on their competition.
Builder Partnerships is here to help. Contact us at 303-972-7666 or to learn about the many services and educational opportunities we offer to help you strengthen relationships with builders and grow your business.