Nailing the Niche: Winning Over Construction Owners

Welcome to Advisor Marketing News, the monthly newsletter that delivers practical marketing strategies designed to help you grow your client base. Each issue is based on insights and analysis from our proprietary database of more than 80,000 business owners, helping you refine your message, target the right audience, and build a more successful advisory business.

Nailing the Niche: Winning Over Construction Owners

If you're looking to grow your practice in 2025, consider focusing on the construction vertical. With interest rates coming down, a recovery in the residential real estate market seems likely. Coupled with private equity's increasing interest in the home services industry, this presents an exciting opportunity for professional advice. Last month, one of the most popular stories on the Wall Street Journal website, “America’s New Millionaire Class: Plumbers and HVAC Entrepreneurs,” highlighted the private equity-backed consolidation of blue-collar trades and the wave of contracting companies selling. As AI threatens white-collar jobs, blue-collar industries are having their moment. That’s why this month’s edition of Advisor Marketing News spotlights the construction vertical.

The Value Builder Analytics team dug deep into the construction industry to see what makes these business owners stand out from the pack and how you can tailor your message to get their attention. You’ll find the report here, and we’ve summarized some key insights below.

Size of the Prize: Construction

The construction vertical is broad and includes several sub-industries that cover various aspects of construction, development, and related services. Key sub-industries include:

• Residential Construction – Home building, renovations, and remodeling.

• Commercial Construction – Office buildings, retail spaces, industrial facilities, and large commercial projects.

• Specialty Trade Contractors – Electrical, plumbing, HVAC, carpentry, painting, and other specialized services.

• Infrastructure Construction – Roads, bridges, tunnels, and utility installations.

• Heavy Civil Construction – Large-scale projects like dams, highways, and power plants.

• Industrial Construction – Factories, manufacturing plants, and other industrial facilities.

• Land Development – Preparing land for construction, including grading, utilities, and road access.

• Demolition – The safe removal and deconstruction of buildings or structures.

• Green Building – Sustainable construction methods focused on energy efficiency and environmentally friendly materials.

• Construction Equipment and Materials Supply – Providers of machinery, tools, and construction materials like lumber, steel, and concrete.

• Architectural and Engineering Services – Design and planning for construction projects.

• Building Inspection Services – Inspection of structures for compliance with safety and building codes.

The U.S. construction industry is a $1.9 trillion market as of 2023, and it's projected to grow at a steady rate of 4.4% annually, reaching approximately $2.8 trillion by 2032. This expansion is driven by investments in infrastructure, residential, and commercial construction, as well as advancements in green building and technology. Within this vast market, there are approximately 1.1 million construction businesses generating between $1 and $20 million in revenue. The business owners in this revenue bracket are a prime target for advice as they are growing but often lack formal business training.

So, how does the construction industry compare to other industries you might target? Construction businesses typically rely more on project-based work, which means their cash flow can be unpredictable, and owners need to plan carefully to manage the gaps between projects. They also face a lot of complexity—everything from navigating regulations and permits to dealing with the challenges of finding skilled labor, which can slow growth when the right people aren't available. On top of that, heavy upfront investments in equipment and materials can put pressure on cash flow, and seasonal factors often affect revenue stability, especially in regions with harsh weather.

All of this makes construction business owners particularly focused on managing operational risks and ensuring steady cash flow. They're navigating a different set of challenges compared to other industries, and that’s where your expertise as an advisor can make a big impact.

Let’s look deeper at how construction business owners think about their business based on what they told us in the Value Builder questionnaire – a tool used to assess a company’s readiness for sale by measuring performance across eight key factors. This questionnaire, completed by over 80,000 business owners, helps advisors identify areas for improvement and guides business owners toward increasing their company's value. (Learn how to incorporate the Value Builder questionnaire into your practice)

Construction is a Competitive Industry

Construction business owners are also very aware of the competitive challenges they face in their industry. Over half of them (52%) believe their customers can find their product or service elsewhere— this is 13% higher than business owners in other industries. Further highlighting this vulnerability, less than 20% of construction owners describe their offering as niche (being completely unique in the market), which is 27% lower than owners in other industries. Finding practical opportunities for these business owners to stand apart from their competitors can go a long way in earning their trust.

Construction Companies Often Lack Recurring Revenue

These owners also tend not to have the benefit of recurring revenue compared to the broader market. Almost 40% of construction businesses report having no recurring revenue at all, and 33% report having just 1-25% recurring revenue. The gap is notably higher vs. business owners in other industries.

Construction business owners will often describe their industry as far more transactional than other industries and struggle to see an opportunity to introduce recurring revenue models, unlike other sectors that have increasingly adopted it. Helping these owners see that it is possible to build more sustainable revenue streams could be a game-changer for them, offering stability in an otherwise unpredictable, project-based environment.

For example, Level 10 Construction, based in California, offers maintenance and repair services after completing construction projects, allowing them to establish long-term client relationships and generate steady revenue from ongoing HVAC, electrical, and structural upkeep. Similarly, Tecta America, a leading commercial roofing company, has implemented proactive roof maintenance programs that provide recurring revenue through regular inspections and repairs.

How to Find Construction Companies

Construction business owners are highly relationship-driven, making word of mouth the best way to connect with them. Referrals from trusted contacts hold far more weight than an impressive online presence—how often have you heard a contractor say, “I know a guy”? In fact, a recent joint study of social media in the construction sector from Construction Executive and Handmade Marketing reveals that only 16% of construction companies use LinkedIn for recruitment and just 34% link their social media to their websites. Construction owners typically have fewer social media connections than desk-based industries because they spend more time in the field than behind a screen. While LinkedIn can be useful for finding prospects, the most effective way to reach construction owners is through referrals from satisfied clients.

It’s also important to recognize that these owners are often on the move, spending most of their time in trucks or on job sites. Making your communications mobile-friendly is crucial. Texting instead of emailing can get their attention faster, and podcasts offer a great way to share insights, as they can listen while driving between jobs. By aligning your approach with their mobile reality, you increase the chances of getting noticed and receiving a response.

Construction is No Longer Just a Family Business

Construction business owners are often stereotyped as wanting to pass their businesses down to their children. While this number is higher than business owners in other industries, the reality is that only a small portion—16%—actually intend to do so. The majority are looking toward other exit strategies, with 49% planning to sell to a third party and 28% aiming to transition the business to their management team. Knowing this as part of your outreach can help you keep your message focussed on factors most important to assisting them in a sale or smooth leadership transition rather than keeping the business in the family.

How to Get the Attention of a Construction Company Owner

So, what makes construction business owners different when you’re pitching your services? Simply stated, profitability. These owners prioritize growing their bottom-line profit over increasing their revenue by almost 40% vs. owners in other industries. These owners are hyper-focused on improving profitability rather than simply increasing sales, likely due to the construction industry's highly competitive, project-based, often seasonal, and cost-sensitive nature.

How to Be a Hero

Unlike many industries where owners often have formal business education, construction company owners typically learn their trade through apprenticeships, community college, or the school of hard knocks. They pull themselves up by their bootstraps, gaining hands-on experience rather than academic credentials. This creates a unique opportunity for advisors to make a significant impact. Even relatively basic business concepts and methodologies can be eye-opening for construction owners, offering them practical solutions they may have never encountered. By introducing strategies that improve financial stability and increase company value, you can deliver real results while positioning yourself as a trusted expert who understands their journey.

Construction business owners often struggle with cash flow due to their project-based model, which lacks recurring revenue. They rely on large, one-off projects, leading to long gaps between paychecks and making financial stability difficult to maintain. This is where you can add significant value. By introducing the concept of service contracts and showing owners how to migrate part of their business to a recurring revenue model—through maintenance contracts or ongoing service agreements—you can help smooth out cash flow issues. This not only stabilizes their finances but also positions you as a trusted partner, fostering long-term, meaningful relationships.

Curious to learn more? Our next live research webinar is coming up on November 14th at 12 pm ET and will focus on the lucrative construction industry. Join best-selling author and Value Builder Founder & CEO John Warrillow for a live, interactive session. Details and registration information are here. These monthly research webinars dive into the data that’s most important to you about the business owners you serve. And remember, Value Builder advisors have on-demand access to all past webinar recordings and presentation materials in the Value Builder portal.

Register Now

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This Week's Contributors

Jason Reilly, Vice President of Marketing; Michael Sarkis, Director of Advisor Marketing; Deanne Kong Ting, Director of Customer Success; and Jen Chou, Senior Graphic Designer.