By Russell Sheppard, Owner & Managing Director
During the unforgettable COVID-19 pandemic that began in 2019, the world found itself navigating uncharted waters. Initially bracing for a recession-like impact, the building industry, including Highview Homes, was surprised to witness a boom instead. With a solid workload booked for the next six months, we steered our ship steadily forward.
Given my involvement across all aspects of the company, from Sales to Construction, I observed the challenges ahead as supply shortages led to steady price increases. Despite not having adjusted our prices for nearly two years prior, we recognized the necessity to cover the recent surge in costs. Conscious of remaining competitive while anticipating a potential recession enforced by the pandemic, we made the decision to adjust our prices accordingly.
As the pandemic progressed, we meticulously tracked every cost escalation, adjusting our selling prices on a monthly basis in response to weekly increases from suppliers. Some suppliers provided advance notice of impending price hikes, aiding our market predictions. Adopting a quarterly price adjustment strategy and leveraging foresight into forthcoming increases enabled us to accurately forecast our future expenses.
Initially anticipating an industry slowdown, we had strategically invested in land to construct speculative homes, ensuring continuity of work for our staff and tradespeople. However, unforeseen industry stimulation exacerbated supply chain pressures, resulting in further price hikes. Remarkably, for the first time in Highview’s history, we found ourselves signing building contracts with start dates projected months in advance.
Reflecting on the pandemic experience, I consider myself fortunate to have made prudent decisions amidst unprecedented circumstances. Past experiences, such as steering my landscaping business through economic downturns, instilled the importance of maintaining control in uncharted territories. I am immensely grateful to the Highview team and my wife for their unwavering support and invaluable input throughout this journey.
