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Dear
Welcome to this month's edition of the Marketing Newsletter. We include details of the Renewable Energy Review, which has just been published, as well as an easy reference on the Green Deal. Continuing the debate about the use of digital media there are also some useful articles that have recently been published on the subject.
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| Construction Market Activity |
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Following a series of surprise reports from the Office for National Statistics on the performance of the UK construction sector a number of industry commentators have questioned their accuracy. Most recently the Construction Products Association has expressed "serious doubt". Commenting on the CPA's latest construction survey, Economics Director, Noble Francis said: "The situation for construction product manufacturers remained challenging in the first quarter of 2011 yet this is a considerable improvement on 2010 Q4 which suffered greatly from the impacts of the bad weather in November and December. 48% of manufacturers reported that sales of construction products rose in 2011 Q1, compared to just 14% in 2010 Q4. Yet the scale of the fall in the official figures is extremely surprising and inconsistent with information from this survey and anecdotal evidence from the industry."
However, not all commentators agree with the CPA. Commenting on the ONS reported 4.7% contraction in output in a recent briefing Glenigan say that it is clear that a stagnant property market, faltering business confidence and government cutbacks are significant obstacles to growth. Glenigan's own data has shown a significant slowdown in project starts over the past six months, meaning the reduction in output was to be expected. Government funding cuts has affected the level of social housing, education and health building. In addition, the cuts and weak economic environment have added to private sector worries stoked by high inflation, poor retail sales and a depressed house market. The value of private housing project starts has contracted sharply over the last three months, while office and industrial construction has been in the doldrums for much of the last three years.
For housing, data recently released by Land Registry shows house prices fell by 1.1% in March, with an annual fall of 2.3%. On a positive note the NHBC report that new home registrations reached the highest monthly number for over three years in March. This figure equates to a 21% increase year-on-year. Council of Mortgage Lenders chief economist Bob Pannell said: "The housing market has emerged hesitantly from hibernation. Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels."
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| Climate Change Committee Report |
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Just published is the Renewable Energy Review, commissioned by the Coalition Government in May 2010. Overall conclusion is that there is scope for significant increase of renewable energy from 3% up to 45% by 2030. They state that offshore wind is more expensive than nuclear and propose that by 2030 nuclear provides 40% and renewable energy 40% of our electricity needs. The remainder coming from coal and gas.
They consider that it would be possible to decarbonise electricity generation with very significant nuclear deployment and have limited renewable, using carbon capture and storage as a cost-effective technology to allow continuation of coal and gas.
Repeating their previous report the committee recommend that new policies are required to support technology innovation and to address barriers to uptake in order to suitably develop renewables as an option for future decarbonisation.
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| The Green Deal Update |
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There is no doubt the Green Deal and other initiatives which follow will have a significant impact on the construction industry over the next 10 years or more. This represents a tremendous commercial opportunity and Competitive Advantage is involved in a number of initiatives to help the industry become prepared. To help organisations understand the initiative we have established a Green Deal update page on our website. As the initiative develops we will provide a simple update for you to refer to. I hope you find this of use and would welcome any suggestions for improvements.
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| Using Social Media with Architects |
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The debate on the value of social media as a sales tool has been running for some time now, with various discussions at seminars I have run as well as on LinkedIn. Our Construction Media Index highlights that social media is being used by a growing proportion of decision makers. But most of the comments that I have read have not been by architects, so architect Su Butcher's recent article in the RIBA Insights monthly brief is most interesting.
She states that there are only two occasions when an architect will want to talk to a new provider; when the existing one does not perform or does not provide what's required. The rest of the time they don't want to talk to you. She suggests that social media is an extension of relationship building, providing a means to present your skills and expertise so that when an architect does need your products or services they will at least put you on their shortlist, perhaps even let you talk to them.
Continuing the theme of digital media, see my recently published articles in AIS Interior Insights Using Social Media and Digital or Hardcopy in RIBA Insights' Monthly Briefing. |