Entering new construction markets can be a daunting task, but with an optimized decision-making framework from SMACNA’s New Horizons Foundation and Arizona State University researchers Mounir El Asmar, Ph.D.; Jera Sullivan, Ph.D.; and Kenneth Sullivan, Ph.D., contractors will gain a strategic advantage.
Contractors tend to think about new market entry in terms of potential positives, such as long-term economic gains or mitigating risk during a downturn. The challenge is, however, that four out of five ventures into new markets end in failure.
SMACNA and New Horizons Foundation realized there is a need for a standardized decision-making process to mitigate the risk, especially since only six percent of contractors report they have a formalized decision-making process.
Decision-making Framework for New Market Opportunities: Experiences from Sheet Metal and HVAC Contractors is a manual used to inform and guide users thoughts in considering these decisions. Collective experiences from industry peers empower users to make informed market entry decisions, increasing their chances of success in new construction ventures
Unlock the secrets of successful market entry
The Decision-making Framework goes beyond theory, offering real-world insights from seasoned sheet metal and HVAC contractors who have triumphed in new construction markets. Discover proven strategies, best practices, and lessons learned that will equip contractors with the experience and knowledge to thrive in market expansion endeavors.
Its structure begins with an applicability matrix to help contractors decide if the framework is appropriate for their specific venture. For example, if a contractor plans to do the same work, in the same location, and within the same industry, this is not a new venture and the framework doesn’t apply. The same goes for new work, in a new location, within a brand new industry—this is a high-risk endeavour and the framework may not apply. However, contractors looking to change just one element of their business—what they do, where, or with whom—will find value in the Decision-making Framework.
How do you decide if you should enter a new market?
New Horizons Foundation and Arizona State University conducted research over several years to develop a multi-step approach to decision-making. The final product is a three-phase, ten-step process, along with several “go/no-go” decision points that encourage users to pause and consider their next actions.
For example, within Step 6: Assess Key Factors, there are eight essential decision factors listed:
- Strategic/cultural fit
- Experience and abilities of the champion
- Market need
- Competition in the market
- Competitive advantage
- Start-up cost
- Profit projection
- Investment capital
Within each of these, the framework lists considerations. For instance, in item 2, Experience and abilities of the champion, the framework lists critical criteria for an effective champion to lead the effort. For item 6, Start-up cost, the model provides templates to guide users thought process from the cost perspective.
Benefits of the decision-making framework
Comprehensive Guidance: The Decision-making Framework provides a systematic approach tailored specifically for sheet metal and HVAC contractors, ensuring users cover all crucial aspects of entering new construction markets.
Insights from Industry Leaders: Benefit from the experiences of successful contractors who have navigated new construction ventures. Learn from their triumphs and avoid potential pitfalls along the way.
Increased Success Rate: By leveraging the collective wisdom of industry peers, contractors will enhance their decision-making capabilities and increase their chances of succeeding in new construction markets.
Confidence in Market Expansion: Gain the confidence and expertise needed to venture into new construction markets. The framework will empower users to take calculated risks and seize untapped opportunities.
Excel in New Construction Markets Today
The framework is set up to walk users through new market decisions in a simple, effective manner. Paired with experiences from sheet metal and HVAC contractors, this resource is the key to success in new construction ventures. Learn from industry leaders who have leveraged these insights to achieve remarkable growth. Discover the decision-making framework and contractor experiences now to ensure success in new construction markets.
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