Subcontractors Undergo Major Changes in Operational Strategies

News Summary

The construction industry is witnessing significant transformations among subcontractors as they adopt effective strategies to tackle cash flow challenges. Recent research highlights performance disparities, with successful subcontractors achieving 41% higher profit margins. Insights reveal that many fail to account for hidden costs in bids, impacting their competitiveness. Looking ahead, 83% of subcontractors aim to expand operations in response to market demands. Foundation Software’s upcoming virtual presentation will share insights from the 2025 National Subcontractor Market Report, guiding industry professionals on improving capital management and bid success.

Foundation Software Highlights Key Trends in Subcontractor Performance

The construction industry is seeing a major shift in the way successful subcontractors operate, according to recent findings by Foundation Software. While many subcontractors are still grappling with cash flow challenges, a strategic segment has discovered effective approaches that lead to impressive results. The contrast in performance among subcontractors is striking: those who employ innovative strategies enjoy profit margins that are 41% higher than their less successful counterparts.

Bid Success Rates and Hidden Costs

Successful subcontractors are not just profitable; they are also more competitive when it comes to securing work. These efficient players win 32% of bids more than half of the time, a significant increase compared to the 19% bid success rate of those employing traditional methods. However, not all is straightforward; a concerning 64% of subcontractors still do not account for certain expenses in their bids, potentially eroding their profitability.

Payment Timelines and Opportunities

The differences between subcontractors and general contractors (GCs) also extend to payment timelines, which show a surprising gap of 26 days. Understanding this disparity presents fresh opportunities for subcontractors who can adapt and use this information strategically.

Growth Outlook for Subcontractors

The outlook for subcontractors is positive. A substantial 83% of them are planning to expand their operations in 2025, with 73% focusing specifically on securing larger projects. This ambition aligns with the need for strategic capital management, which is becoming increasingly recognized as vital for growth and maintaining a competitive edge in the construction sector.

Upcoming Virtual Presentation

Foundation Software is hosting a virtual presentation on July 9, 2025, designed for industry professionals who want to delve deeper into these trends. The event will showcase insights from Billd’s expert team, presenting their comprehensive findings from the 2025 National Subcontractor Market Report. Attendees can expect actionable strategies that focus on improving capital management, protecting profits, and increasing bid success rates.

Event Details and Registration

The event will be conducted in a live format, featuring expert presenters who will guide the discussions. The target audience includes subcontractors, construction company executives, and other industry professionals looking to achieve a competitive advantage. Registration is free and can be completed online at the provided link.

For those interested in more information or who have inquiries, representatives are available to assist. Key contacts include Tracie Kuczkowski and Samantha Ann Illius, who can provide further details about the presentation and its contents.

Deeper Dive: News & Info About This Topic

Additional Resources

• GlobeNewswire: Personalized Pitch – The Smart Way to Engage Journalists in 2025
• Access Newswire: Top 10 Press Release Distribution Services in 2025
• GlobeNewswire: Notified and Taiwan Investor Relations Institute TIRI Successfully Host Seminar
• Google Search: Construction Industry Trends
• Encyclopedia Britannica: Construction