Greetings!
Welcome to this month's edition of the Marketing Newsletter. The new government's fiscal measures and their impact on the construction industry have dominated the last month and I have provided some links to provide you with more information. We also include details of the Committee on Climate Change's second progress report to Parliament. Finally if you are thinking about how to make your marketing more effective, there is a suggestion to help you increase your CPD bookings.
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| Construction Market Activity |
In the last month we have seen a few positive signs of recovery, but mostly dire warnings for the future, following first the budget and then announcements by government departments which will have an impact on the construction market in future months and years.
The budget was not as bad as expected for the industry, with expenditure on government capital projects only falling to the level set by the previous government. However subsequent announcements have caused concern in the industry (see below).
The budget was not as bad as expected for the industry, with expenditure on government capital projects only falling to the level set by the previous government. However subsequent announcements have caused concern in the industry (see below).
Although the rise in VAT to 20% next January, is seen as a blow to the home improvement sector it should be remembered that when energy saving materials, such as renewable and insulation are installed, the reduced VAT rate of 5% applies and this will not increase. This should support and encourage the Warm Homes, Greener Homes programme.
Since the budget we have had the announcement that £450m will be cut from the HCA's social housing budget, £50m cut from Defence Estates budget and the scrapping of the Building Schools for the Future programme which will see the cancellation of 674 school projects worth more than £12bn, although 375 projects which had reached financial close will continue and a further 34 projects are under review. There is also talk that the £4bn prison spending programme will be cancelled.
Much of this had already been anticipated in forecasts, or will impact after next year. But there is now some talk of a double dip recession following the publication of construction employment statistics and construction output statistics. Glenigan has also reported a slowing in project starts with fewer public sector projects and a drop in private housing schemes on site during May.
The RICS Housing Market Survey is also anticipating a fall in house prices as more properties come onto the market as a result of the abolition of HIPS combined with a reduction in buyer interest.
However the NHBC reported that new private sector registrations were up 89% (at 20,877) in May compared with the same period last year and public sector registrations were at 11,475 which is 40% higher than the same period a year ago.
Although construction output for the first quarter of 2010 was down 1.8% on the last quarter of 2009, this was mainly due to a poor January and February for private housing and RMI. Since then we have seen a steady improvement and if June is as good as April and May we will see the best quarterly result since Q4 2008.
Finally the CPA/Ernst & Young Construction Activity Barometer said that growth in the second quarter of 2010 was the fastest it has been for three years. Although this has to be treated with some caution, as sales in the same period last year were very weak, meaning comparative sales figures are low.
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| Implementing the Low Carbon Agenda |
The Committee on Climate Change published their second progress report to Parliament on progress in building a low carbon community. In this they conclude that "The UK's greenhouse gas emissions fell 8.6% from 2008 to 2009 with reductions of 9.7% in CO2 and 1.9% in non-CO2 emissions. But the reduction was largely due to the recession." The report includes some useful charts and statistics indicating progress in reducing CO2 emissions.
The full report, an executive summary and the chapter on Buildings and Industry can all be downloaded from the Committee on Climate Change website.
At about the same time CIMCIG also issued a report on the "Commercial Value of Sustainability" The report concludes that the big opportunity for the supply of sustainable products and services is the upgrading of existing housing stock. To do that we need to make it appealing and aspirational to consumers.
These reports, like so many, say that we need to do more to get reduce CO2 emissions, one example of a company who set out to become a sustainable business and are now benefiting from a number of new product innovations is InterfaceFLOR. They show how thinking outside the box can deliver results, and profit, for the business. For some inspiration why not take a look at their initiatives. |
| Increase your CPD Bookings |
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If you look at the listings available from RIBA and the Construction CPD Certification Service there are now hundreds of CPD seminars being offered by manufacturers. This means that just publishing a CPD seminar is not going to be enough, you need to actively market the seminar if you are to get any bookings.
To help you with this Competitive Advantage has developed a new one day in-house course "Delivering CPD seminars" which helps your team identify the USPs associated with delivering your CPD seminars, guides them in selling-in these benefits and then gives them the skills to deliver your seminar effectively.
I recently wrote the article below for RIBA Insight's bulletin explaining how you can increase your CPD bookings.
Delivering a CPD seminar is one of the most effective means of introducing your company, and the sales contact, to an architects' practice. But as the choice of CPD seminars available increases it becomes much harder to get a booking. To be effective companies need to sell-in their CPD seminars. Read more.
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| New Website Features |
Two new website features designed to keep you informed about developments in construction sales and marketing are a selection of book reviews and a list of forthcoming events. If you have any books for review or events that you would like publicised please email them to info@cadvantage.co.uk |
