National Home Corp. targets 18% gross margin with pace focus
CEO Michael Bergman said July results hit plan with 70 closings and 93 starts.
National Home Corp.'s focus on pace and achieving an 18% gross margin is a strategic move that reflects the current state of the construction industry. With rising labor and material costs, homebuilders are under pressure to maintain profitability. By targeting a specific gross margin, National Home Corp. is signaling its commitment to operational efficiency and cost management.
The company's July results, with 70 closings and 93 starts, suggest that it is on track to meet its goals. This is notable, as many homebuilders have been impacted by supply chain disruptions and labor shortages. National Home Corp.'s ability to maintain a steady pace of closings and starts indicates that it has a handle on its operations and is well-positioned to navigate the challenges of the current market.
As the construction industry continues to evolve, it will be important to watch National Home Corp.'s progress in achieving its gross margin target. The company's focus on pace and efficiency could serve as a model for other homebuilders, and its success or struggles will likely be closely watched by industry peers. Additionally, investors and analysts will be monitoring National Home Corp.'s performance to gauge the overall health of the housing market and the impact of economic trends on the construction industry.
Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.