“Market share” is the percentage or portion of the market controlled by a company or its products/services. If you’re the largest distributor of construction widgets in Maricopa County, AZ, you have the majority market share.
You should use construction data analytics to keep an eye on other companies. (They may try to cut into your market share.)
Perhaps you would like to target another market; a different location. You need to evaluate your competitors. What market share does each company have and what are their vulnerabilities? Construction data using last year’s building permit information and historical trends will give you the numbers you need.
How to Calculate Your Market Share
There’s an easy, logical formula to calculate your construction-industry widget sales market share. First, pick the timeframe, such as 2Q 2019.
Take your total revenue, 2Q 2019 and – this is where it gets tricky – find the total sales revenue for all construction widgets in your market.
Divide your revenue by the total revenue and you now have your market share percentage. Or you could simply request a construction data detailed statistics report.
Markets Vary by Location
For every 1,000 average single-family homes built,
2,975 jobs are created. –Builder magazine
New home building trends show an overall drop in new housing between the mid-2000s and 2020. The world is so much smaller today! You should closely follow national and global industry trends. But you can’t lose sight of the fact that data for Mississippi may have no bearing on your company in Washington.
Coronavirus 2020 and You
Put your market share information to work, and do it now, while you’ve got some “down” time. This is no time to spend working jigsaw puzzles at home (Although many of us in the construction industry enjoy that particular hobby).
Pull the reports you need from Construction Monitor, then contact us and ask one of our construction data professionals for suggestions on how to implement a market-share action plan using construction data. Call 800-925-6085 to learn more.
Meanwhile, we wish continued good health for you and your loved ones.