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August 15, 2025
Construction Industry

The 80/20 Rule and the Great Construction Shake-Up

By
Rachael Mahoney
The 80/20 rule, or Pareto Principle, originated when economist Vilfredo Pareto observed that a small share of causes often produces the majority of results—like 20% of pea pods yielding 80% of peas, or 20% of people owning most of the land. Since then, it’s been applied to countless situations, including heavy construction, where 80% of business typically comes from long-standing customers—relationships often built and maintained over generations.

A Market Built Solely on Relationships… Until Now

For generations, that 80% was a rock-solid foundation. You didn’t just know your customers; you knew their kids’ names, their favorite lunch spots, and probably how they take their coffee. But the industry is in the middle of a quiet revolution, one that feels less like a gentle repave and more like a full-blown demo day and complete reconstruction.

  • Economic pressures: Market demand is tightening.
  • Demographic shift: A mass retirement wave is sweeping away much of the human bridgework that connected businesses across decades.
  • New decision-makers: Younger, digital-native leaders are stepping in, fluent in Slack, Zoom, and the quiet suspicion that fax machines are a myth.

The old relationship playbook still matters, so don’t toss it out, but the language of business is changing. If you’re not fluent in the dialect of digital-first, data-friendly decision-making, you might as well be speaking in Morse code.

Why the 20% Suddenly Matters More Than Ever

Here’s the lead: when the traditional work slows, supply chains tighten, and material costs balloon, that “other” 20% of customers might hold the keys to staying not just afloat, but profitable.

Historically, the 20% has been elusive:

  • They’re harder to find.
  • They’re outside your core relationship web.
  • They don’t show up at the same associations or networking events.

Opportunity on the table: when you do land them, that work often comes with higher gate-rates and margins and fewer “friendship discounts”. The only catch? You need a way to reach them, because the old coffee-and-handshake approach isn’t going to cut it for customers who live half their lives in project management apps or across the country in a different market.

Augmenting Relationships in a Digital Age

This is where technology stops being “something for the kids” and starts being the bridge to the next era of your business. The strategy isn’t to replace relationships… It’s to augment them.

Think of it like power machinery. You could still move materials by wheelbarrow, sure. But why would you, when there’s an excavator right there?

Today’s construction leaders can:

  • Use digital sourcing platforms to identify and connect with high-value customers they’d never meet otherwise.
  • Leverage data to understand demand patterns, pricing sensitivity, and project timelines.
  • Communicate in formats and channels that resonate with new decision-makers while still bringing the trust, reliability, and personal touch that built the business in the first place.

A Chance to Rethink the Mix

In times of stability, there’s comfort in the familiar, and frankly, less incentive when you have your capacity maxed and a robust backlog. But in times of disruption, like right now, there’s opportunity in rethinking your mix of 80% “legacy” and 20% “growth.”

Suppose the next decade belongs to leaders who can blend the relationship equity of the past with the digital fluency of the present. In that case, this is the moment to start building your dual-language skill set and not waiting until you feel economic pressure.

In short: maybe it’s time to flip the script.

Don’t just rely on the 80% that got you here.

Consider how the 20% could fill in demand and sustain you in the lean months and years ahead.

After all, with the right strategy and a few helpful tools, 20/80 is as powerful as 80/20.

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