CBUSA is Poised for Evolution

Custom builder buying group plans to expand services and programs.

2 MIN READ

Custom Builders USA (CBUSA; www.cbusa.us), formed in 2005 as a nationwide network of local buying groups of custom home builders, is building on its successes to deliver more programs and services to its membership. The “networking-building company,” as its leadership likes to define the organization, has experienced considerable growth in the past few years, and its future developments will support that growth.

The organization recently added a 15th location—Denver—to its network and plans to add several more this year. Since 2006, CBUSA’s membership has nearly doubled, increasing to 444 builders nationwide. Their combined volume represents more than $3 billion a year in revenue. “That’s the buying power we’re looking to leverage in the marketplace,” says CBUSA chief executive officer Bill Smithers.

Since the organization’s inception, spending per builder has continually increased through the end of 2007—a good indication of the network’s health. Last year, CBUSA’s builder members purchased nearly $250 million dollars in materials and labor through member vendors. Though he expects market pressures will check growth in 2008, Smithers projects that by 2012 the network’s purchasing volume will exceed $1 billion.

CBUSA is currently increasing the functionality of its Web site ordering service. Its 3.0 Web platform is targeted for completion by January 2009, and some of the major improvements include:

  • Real-time dashboard reports for builders with pricing updates from vendors, program updates, special offers, reporting requirements/needs, and vendor performance ratings;

  • Enhanced ordering capabilities and more streamlined communication between builders and vendors;

  • Survey tools and vendor ratings;

  • More streamlined reporting process; and

  • Automated report generation. The network is also looking at establishing a land-acquisition program, an insurance program, a take-off and estimating service, a purchasing program, and a selections program.

    CBUSA will hold its annual membership meeting at CUSTOM HOME’sDirections 2008 Conference, June 2 to 4, in Key Biscayne, Fla. It will unveil its strategic plan for the next 12 months and discuss its major initiatives.

    (Read our previous stories about CBUSA here and here.)

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