In today's business climate, even robust firms are under pressure to operate leaner and smarter. To boost margins, many are relying on strategies like cost-cutting, workforce reductions, automation, and enhanced productivity to supplement top-line growth. They’re embracing "human-light" operations, seeking more output from less staff.
While it’s a recent trend in corporate America, doing more with less is business as usual for small construction companies. Faced with tight margins and labor constraints, some owners have turned to private equity as a path to scale, efficiency, and back-office strength. In trades like plumbing, roofing, and HVAC, PE-backed acquisitions are enabling firms to add capital, sharpen management, and grow without losing agility.
But what about the majority of small construction businesses for whom selling or merging isn’t a good fit? To stay competitive, it’s never been more essential to find and use workflow, communication, and project management tools that help boost efficiencies and ensure customer satisfaction.
Small businesses lead in home construction
Small builders are still the backbone of the industry. According to the latest NAHB Member Census, the residential construction industry is still dominated by thousands of lean, local firms that operate with modest staff and revenue, compared to the broader homebuilding landscape.
- The majority of builder members (60%) are considered small businesses (as defined by the U.S. Small Business Association), earning under $5 million annually. These are local operators, often relying on specialization and reputation to compete against both larger regional firms and national players.
- Mid-sized and large firms are the minority, with only 16% earning more than $15 million.
- The median number of housing starts is six per year, meaning each project carries higher stakes for profitability and efficiency. By comparison, the largest 10 U.S. builders each closed more than 10,000 homes annually.
- Small staff sizes are the norm, with the median payroll among NAHB members at six employees. Many of these small firms rely on subcontractors to flex capacity up or down.
The vast majority of builders are not operating at massive scale. They are small firms, building homes one project at a time, with limited staff and resources. And while larger companies remain the minority, they gain a competitive advantage by spreading costs across bigger operations, marketing budgets, and land positions.
How Hover multiplies efficiencies for small builders
For any small business, every tool, hour, and decision has an outsized impact. To survive and grow, they need to build in greater efficiencies and smarter workflows. With Hover, small businesses can do more with less – achieving the same leverage as a larger operation without the overhead.
- Get accurate measurements without extra site visits
When every housing start counts, mistakes are costly. Hover’s photo-based measurements and 3D models eliminate the need for manual scaling and repeat trips, freeing up staff to focus on managing subs and clients instead of tape measures. You can bid faster, with greater confidence and fewer surprises. - Generate automated material lists and takeoffs, in two clicks
With small teams, over-ordering or missing materials means delays and wasted dollars. Hover automates takeoffs and material lists, reducing reorders by an average of two per job, a big win when margins are already tight. - Leverage 3D visualization to help close the deal
Client confidence is critical to closing a deal. With Instant Design and 3D visualization, Hover lets homeowners see exactly what their finished home or remodel will look like, making it easier for you to win bids and close jobs faster. - Streamline ordering with seamless supplier integration
When staffing is lean, procurement can’t be a full-time job. Hover’s integrations let you send material lists directly to suppliers, accelerating orders and cutting out administrative headaches. - Boost close rates
Contractors like Rapid Roofing have doubled close rates on siding jobs with Hover. If you’re a small builder, that kind of conversion improvement isn’t incremental; it’s transformative.
With Hover, small builders can access the tools, efficiencies, and speed of a much larger competitor, and scale without adding headcount. You can bid more work, faster, with fewer hours, and slash wasted materials and procurement friction.
It’s the kind of efficiency private equity can bring, without giving up your independence.
