Subcontractors buy materials, hire labor, bid against competitors and then have crews install materials. While some contractors focus on getting a lower price on materials (or finding ways to pay the workers less) those are pennies in profits; it is the value of what your crews produce weekly that is the key to making money. Production is the most crucial element for you and your company if you want to succeed and grow. The stucco industry is possibly the best example of production and impacts to the overall market and market share.
According to the US Census Bureau, stucco cladding has climbed to an all-time high of 27 percent market share on new single-family homes. This is primarily due to the southwestern U.S., where most new tract homes are clad in cement stucco. The reasons why stucco is so popular in the southwest are often argued and seldom understood. One misconception being that cement stucco cannot handle cold weather. The real reason is pretty simple: cost. This, in turn, leads some to think it is the open or merit shop structure that makes it possible.