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Full Description
Bigger Isn't Necessarily Better examines the performance and operation of the US homebuilding sector based on a detailed survey of large home builders conducted by the authors in the period of the great building boom of the 2000s. In contrast to the many books that have focused on the financial side of the housing sector prior to the Great Recession, the book examines the operational side of the industry and what did, and, more importantly, what did not, happen during the period of unprecedented growth. Despite the rise of very large, national homebuilders during the boom years from 1999 to 2005 and the consolidation of the industry that accompanied it, the authors find that major homebuilders often did not adopt innovations in areas ranging from information technology, supply chain practices, and work site management, nor improve their operational performance. Given this, the book discusses what homebuilders can learn from other industries as they face a challenging future.
Contents
PrefaceChapter 1: Home Building-Is Bigger Better? The Home Building Boom The Seeds of Consolidation The Growing Dominance of Big Builders Conventional Wisdom about Scale The Virtuous Circle Hypothesis Organization of the Book Chapter 2: Studying the Home Building Industry Building the Machine for Living Focus on Entry-Level Homes Measuring Local Market Competition Survey Coverage and Content Structure of the Survey Chapter 3: Big Builders at the Corporate Level Builder Performance during the Boom Securing Capital for Expansion Land Assembly Strategies Corporate Branding and Customer Satisfaction Conclusion Chapter 4: Labor and Subcontracting Practices The Construction Manager Model Benefits and Costs of Improved Coordination Coordinating On-Site Activities Performance at the Construction Site ConclusionChapter 5: Advanced Operational Practices Emergence of the Third Supply Channel Shifting Builder Priorities Implementation of Advanced Practices The Role of Local Market Conditions Market Characteristics and Builder Performance Conclusion Chapter 6: Information and Communication Technology ICT Background Communicating with Customers Home Builders and Technology Use in the Back Office Home Builders and Technology Use on the Site Using Technology to Estimate Costs Using Technology to Coordinate with Subcontractors and Suppliers The Importance of Sharing Factors Discouraging Greater Use of Technology Conclusion Chapter 7: Lessons about Builder Scale and Performance Challenges of Improving Operational Performance The Importance of Local Markets Revisited Disentangling the Effects of Size and Location Can Bigger Get Better? Chapter 8: Gaining Advantage from Scale Improve Subcontractor Coordination and Workforce Quality Increase Standardization and Preassembly of Components Leverage the Power of Information Technology Streamline Supply Chain Management and Logistics Managing Risk in the Twenty-First Century Appendix A Joint Center Advisory Panel for the Harvard Home Builder Study Appendix B Survey Responses to ICT Questions References Index
