Pretty Good Isn't Excellent
On the surface, the difference between a production builder and a custom builder is simple. One builds the same basic house over and over, and the other builds a unique home for each customer.
But the real differences go deeper. These two builder types are, in fact, fundamentally different businesses.
This difference shows up in the quality results. A 2017 article in Professional Builder magazine cited a DuPont study on how much construction defects were costing US production builders. They found that the average big builder spends a surprising $4,919 per house on warranty claims.
This isn't a dig at production builders. These companies play an important role in our society.
By adapting management systems developed in the auto industry, production builders supply affordable homes to millions of Americans. They build about 84% of the country's housing stock each year. That percentage will likely grow. Thanks to a shortage of skilled trade workers, big builders are investing millions of dollars into automation technologies to let them build more homes in less time with fewer hands.
Many production builders also do pretty good work, with fewer defects than the industry average. But while manufacturing systems make it possible to roll defect-free cars out of a climate-controlled factory, getting similar results with homes built in the sun, rain and snow is a lot harder.
The desire for a custom tailored fit & high quality are main reasons why many people opt for a new custom home. While many have quite sophisticated management systems, custom builders are craft businesses at heart. They attract like minded staff and subcontractors who are devoted to craftsmenship, strive for perfection and base their reputation on delivering it.
Professional custom builders don't look at homes as units of output. Instead, each project is a carefully engineered work of art.
There's a similar dynamic in other industries. You can get a decent plate of pasta at Olive Garden but the experience won't approach that of the one-of-a-kind, upscale Italian restaurant. The same goes for dress clothes. "Most people are happy with a good-quality, $200 or $300 production suit from Joseph A. Bank," quipped a well-known homebuilder consultant. "However, there will always be people who want a $10,000 bespoke suit from Savile Row."
Nowadays we seem to live in an age of bland, franchised sameness, but a quality-built custom home is a way to create a lasting, functional work of art that suits your lifestyle.
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