Business View Magazine - Dec 2023

NAVIGATING ECONOMIC HEADWINDS In an industry that is as susceptible to economic fluctuations as custom home construction, Eclipse demonstrates impressive agility. The recent years have not been without their challenges, as rising interest rates, skilled labor shortages, and soaring material costs have put considerable strain on the sector. Yet, Brodt explains how the company has adapted its business model to remain resilient and responsive in the face of these challenges. Brodt acknowledges the shifting economic landscape with a nod to the strategies that have allowed Eclipse to thrive. “In response to these challenges, we’ve largely transitioned to a cost- plus-fixed-fee model for our larger, more custom homes,” he explains. This approach balances the risks and potential benefits between Eclipse and its clients, fostering a partnership-like relationship. “Clients understand the risks and the potential benefits with costs,” he notes, and this transparent arrangement has met with little resistance. Brodt emphasizes meticulous management in handling fixed price contracts and changes, leveraging their digital efficiency to adapt to and factor in inflationary pressures. He notes the local market’s relative insulation fromwidespread delays, with current challenges narrowed to window and high-end appliance supply. He also observes an advantageous shift in the labor market due to a recent downturn, resulting in greater subcontractor availability. Brodt additionally remarks on a significant trend in client transactions, moving toward more cash-based projects, a strategy that mitigates the impact of fluctuating interest rates. This transition enables Eclipse to continue focusing on delivering high-end custom homes while navigating economic variables with agility. CRAFTING SPACES: THE ECLIPSE DEVELOPMENT ETHOS The homes built by Eclipse are more than mere structures; they are intricate mosaics of design and functionality reflecting the individuality of their owners. Brodt shares insights into the two distinct categories of homes the company specializes in, each with its unique allure and design philosophy. Brodt describes the first category with enthusiasm, “We focus on larger homes, but within that, there’s a fascinating trend we’re catering to: New Urbanism.” He pauses to clarify the concept—a movement toward community-oriented living spaces, even in suburban settings. Brodt paints a vivid picture: “These are areas where homes are closer to the street, with small lots and front porches raised a few feet off the ground to encourage interaction with the community.” These New Urbanism-inspired homes, ranging from 1,800 to 5,000 square feet, are architecturally pleasing, with courtyards, rear-loaded garages hidden from street view, and rich outdoor living spaces. “They’re more compact,” Brodt clarifies, “but they come with exotic features, like small pools, reclaimed beams, high-end appliances, and intricate fireplaces, to name a few.” 44 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 12