Fewer clients, slower deals? Here's why

Don’t waste the slow season. This week, we’re digging into how contractors are using tech to plan better, market smarter, and keep deals moving—even as consumer confidence drops. We’ve also got insights on what that dip means for your pipeline, and how to adjust your communication when clients get cautious.

Since it’s officially spooky season, we’ll let Alexandra McNamara kick us off with a look at coffin locks!

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Your website might be working against you

These days, your website is part of every sales pitch—whether you realize it or not.

“The construction industry has traditionally relied on relationships and referrals,” notes AltCMO CEO Perryn Olson. “That’s still true, but the reality is that every referral and every shortlist decision now gets validated online.” 

That means prospective customers and employees are searching the web for information about your company, frequently on mobile devices.  Unfortunately, AltCMO’s Construction SEO Report shows that many contractors’ websites aren’t optimized for mobile, even though more than half of all searches are completed on phones and tablets.

To make the experience smoother and to avoid irritating off-site visitors, AltCMO recommends compressing images, using up-to-date coding practices and minimizing unnecessary elements. This may seem like a small thing, but all the major search engines and AI platforms track load times and page abandons (when someone gives up waiting) and use that information to decide what pages to recommend to users. When your site’s slow to load, it’s less likely to be featured, even if your content is top-notch.

Why it matters: Streamlining your site for mobile users gives you an advantage over most competitors whose sites are frustratingly slow to load. (AltCMO)

More small firms are adopting AI. Is yours next?

The latest contech report from Wipfli shows that contractors are accelerating their use of AI. Almost half (43%) of construction companies in a recent survey have fully integrated advanced technologies into their operations and one-third employ real-time, automated decision-making. And it’s not just the big boys. Two-thirds of the smallest firms now have AI strategies, too. But they lag behind larger players in AI adoption, with 48% saying their tech integrations were minimal to moderate. The biggest barrier, cited by 47% of respondents in companies with less than 50 million in revenue, was employees having trouble using new solutions.

Why it matters: AI is an effective tool for automating processes, identifying trends, informing strategy and scaffolding decision-making. These improvements position you to be more competitive. “Those whose AI output is limited to meeting summaries and emails will be left behind,” the report states. (Buildings)

Consumers are feeling less confident

The ongoing challenges of workforce issues, business conditions and general uncertainty are tanking consumer confidence. The Conference Board’s Consumer Confidence Survey index receded 3.6 points to 94.2, a steeper slide than anticipated and reaching the lowest point since April.

“Many consumers are increasingly feeling the strain of elevated prices and slowing income growth, prompting them to draw down savings and rely more heavily on credit to sustain their spending,” commented Gregory Daco, chief economist at EY-Parthenon. 

What it means: Customers may cancel or hold off on non-essentials, including renovations, additions and other construction projects. Confirm scheduled projects with clients and be open to working with them on financing when you can. (US News & World Report)

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Preparing for your planned (or unplanned) exit

"A will is not much. You want to have a full legacy plan in place, a real plan done with an estate planning attorney so you know what's going to happen if the unfortunate does happen." 

–Dustin Terry, Clear Harbor Wealth Management

Financial planning for construction owners, including succession and other ownership transfer options, was the topic when Dustin Terry of Clear Harbor Wealth Management stopped by “Trade Talk: The Podcast of Contractors Connect”.

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The Level is curated and written by Margot Lester and edited by Bianca Prieto.