How to Measure Your Construction Market Opportunity

Knowing your construction market opportunity allows you to better manage your business while making more effective decisions. As the management consultant Peter Drucker said, “You can’t manage what you don’t measure”. This certainly rings true in the construction industry, as knowing your limits is very important. Whether you use your own sales people, independent representatives or distributors, having a realistic understanding of your business’ construction market opportunity enables you to make better decisions about your sales, marketing and product performance. This Insider’s Guide explores the ways to measure your construction market opportunity, what data to use, and finally where to find it.

Measuring your construction market opportunity using total construction activity can be misleading, since the number is a combination of three broad categories, including:

  • Nonresidential: commercial, institutional and manufacturing buildings
  • Residential: single and multifamily housing
  • Nonbuilding (infrastructure): streets and highways, bridges, water supply systems


Since total construction activity is made up of three separate categories, it is vital to break them up during analysis to understand your market opportunity. For example, total construction could be up 5% over the past year, but individual category performance could show that residential is up 10% while nonresidential is down 5%. Understanding the breakdown of different metrics will allow you to narrow down exactly what is helping or hurting your company, and how to tweak things to increase your profitability. To measure and understand your construction market opportunity requires that you understand the construction industry sectors that sell well for your product, pinpoint the geographic areas that have the best potential, use historical data to anticipate change, and further refine those opportunities to make the best business decisions.


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