Market share is not a measure of success; profitability is.

Chasing market share without a focus on profitability is like running on a treadmill. You may be moving, but you're not getting anywhere.

The Market Share Trap: A Commercial Death Spiral

Market share obsession is a ticking time bomb for building contractors. The clock is always running.

Contractors sacrificing margins for volume aren't executing a strategy, they're postponing a reckoning. The reality is clear: construction mathematics leave no wiggle room. When you consistently trade profit for market share, you're not growing, you're steadily depleting capital.

This approach triggers three consequential commercial failures:

1. Cash position deteriorates - Thin-margin projects don't generate enough capital buffer, leaving you exposed when challenges arise

2. Negotiating power diminishes - Clients spot and exploit contractors desperate for volume

3. Site performance declines - Under-resourced projects create quality issues, delays and reputation damage

Construction's low barriers to entry make market share a fundamentally flawed success metric. Anyone can temporarily acquire market share by underpricing, creating growth illusions while destroying actual value.

Profitable contractors take a different approach. They:

• Target sectors where their specific capabilities command better rates

• Maintain pricing discipline even during volume fluctuations

• Invest selectively in capabilities creating genuine competitive advantages

• Decline unprofitable work regardless of revenue impact

Contractors prioritising market share over profit aren't actually securing their future, they're limiting their commercial lifespan. The industry is full of firms that confused activity with achievement.

Sustainable growth comes only from the disciplined pursuit of profitable work, not from pursuing volume at any price.

Addressing the Counterarguments

"But scale creates efficiency" - Unlike manufacturing, construction rarely delivers meaningful economies of scale. Each project brings unique conditions, supply chains and stakeholders. Volume without standardisation or process maturity typically increases complexity, not efficiency.

"Loss leaders secure future work" - In theory, yes. In practice, construction clients rarely reward loyalty with premium rates on future projects. Once positioned as the low-cost provider, escaping that perception becomes increasingly difficult.

"We're building relationships" - Relationships built on unsustainable pricing create clients who value you primarily for your willingness to work cheaply. These relationships rarely transform into profitable partnerships.

"We need volume for fixed cost coverage" - This creates a dangerous spiral. More unprofitable work requires more infrastructure, increasing fixed costs and creating pressure for even more volume. Break this cycle by focusing on contribution margin per resource unit, not gross revenue.

"Growth attracts investment" - Smart money evaluates construction businesses on cash flow stability and return on capital, not headline growth. Investors who chase revenue growth in construction typically create more failures than successes.

The most resilient contractors understand a fundamental truth: in construction, profit isn't what happens after success, it's what enables success in the first place.