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Construction Sales and Marketing Newsletter
April 2012 |
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Construction Market Activity - April
Since my last report the main event has been the budget, plenty has been said elsewhere so I will settle for a brief summary:
Most was leaked ahead of the main announcement, so no surprises and it looks like we will avoid double dip recession - although the Chancellors expectations are optimistic compared with other forecasters. The larger housebuilders reacted positively, in addition to the well publicised infrastructure investment, £50 million is to be spent introducing high speed broadband into 2 cities but we are seeing a slow start to introducing new forms of investment. It was disappointing that there was no announcement on a new model for PFI and that more was not done to increase employment through construction investment.
Latest Office for National Statistics figures for February orders, when compared with January, show a 2% increase for new work and a 13% increase for Repair and Maintenance, making a total increase in output of 6%. Although good spin, it is still one of the worst performing months since January 2010.
Forecasters have taken a negative view on social housing starts for 2011 onwards, so it is encouraging to see in the Homes & Communities Agency report that they have exceeded their delivery targets for 2011-12. They cannot report on housing starts and completions until May or June but the tone suggests that these will exceed target.  |
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Regulations & Initiatives - quick update
A major step forward in implementing the Green Deal was achieved when the government published a Green Deal Provider Guide and announced the first 22 organisations to become Green Deal Providers. These companies will play a major part in implementing the Green Deal and will commission or employ the installers of energy efficient measures.
The companies are:
Ampere GDP, Anglian Home Improvements, BritishEco, British Gas, CarbonLow Group, Carillion, Empower Community, Enact Energy, E.ON, Gentoo Group, Grafton Group, Insta Group, Keepmoat, Kingfisher, Mark Group, ReEnergise Finance, SIG plc, SSE, Stroma, Toriga Energy, Willmott Dixon Energy Services, Yorkshire Energy Services.
Another step towards implementation of the Green Deal is the launch of a new Energy Saving Advice Service. Initially focusing on providing advice to households and businesses on existing Energy Efficiency and Microgeneration schemes. The government says it will play a crucial role in providing independent and impartial advice to consumers, including onward referrals, on the Green Deal when the policy launches in October 2012. For an up to date view of the government's position see Greg Barker's speech at Ecobuild.
Against this background of activity to increase demand for energy efficiency products, the OFT has issued a Call for Evidence to understand whether the home insulation market is working well for consumers. It believes there may be restricted entry to new competitors. Last year, the Consumer Direct advice service received nearly 3,000 complaints about solid and cavity wall insulation.
DECC has launched the second phase of the Renewable Heat Premium Payment scheme, with a budget increase from £15m to £25m and encouragement to communities to apply for grants. At the same time a consultation on an interim cost control measure for the Renewable Heat Incentive (RHI) has been announced. Closing on 23rd April, the proposal is that if the budget is exceeded during a year it would suspended.
UK Contractors Group members have agreed a policy to "support and give preference to procuring products which are able to demonstrate compliance with a recognised responsible sourcing scheme, certified by a third party". This will increase demand for the BRE's responsible sourcing scheme and add a new aspect to the specification and selection of products.
Tesco's announcement that they are to cut back on their programme of big store openings to focus on internet growth could just be the start of changes in a sector which has provided plenty of opportunities for construction in recent years. In their report The changing face of retail: The store of the future Deloitte suggest that the store will become a brand and product showroom with fewer stores required. This could provide refurbishment opportunities, but may also signal a reduction in new store construction. Tesco's change in policy from new store construction to refurbishment could be the start of a trend in this sector.
Finally, mention must be made of the governments simplification of planning, the new National Planning Policy Framework is available for download and forms part of the reforms which aim to "make the planning system less complex and more accessible, to protect the environment and to promote sustainable growth." |
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BIM - the opportunity
In the last 12 months BIM has started to compete with Sustainability as THE subject in construction. (see Some say BIM is unstoppable) Initially the government said they would require it for projects over £5m, now private sector groups such as the BIM for Retail Forum are being formed to encourage adoption.
As well as offering cost savings to clients, designers and contractors through improved efficiency, BIM is also an opportunity for the manufacturer to get products specified. Once a BIM object is incorporated, because of its complexity it is much less likely to be switched. However initial selection may be more of a team decision. In time, making BIM objects available will be as important as providing an NBS specification or a CAD detail today.
Our research shows that specifiers want manufacturers to provide BIM objects. The challenge for the manufacturer, and early adopters of BIM, is which system to use. There are 6 leading providers and the government is not stating any preference in a desire to encourage competition and innovation. It is for that reason that Competitive Advantage has just published its latest research report Adoption of BIM which sets out how leading Architects, Engineers and Contractors are progressing, as well as listing the BIM and CAD systems each organisation is currently using.
The report provides a valuable reference document for companies developing their own BIM strategy.
If you want to learn more about BIM why not attend CIMCIG's April seminar Winning with BIM. This half-day seminar is for those responsible for marketing and business development in construction, product manufacturers or professional consultants who are seeking to understand what BIM can do for their business. |
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What's being said - a round-up of useful marketing items
Ecobuild may seem like a distant memory but the show only closed a little over 3 weeks ago! The following videos give a useful overview of the show and may spur you on to implement some learning outcomes from this significant exhibition.
MDi TV Ecobuild 2012 round-up
Product manufacturers interviewed at Ecobuild
Inbound marketing: do's and don'ts are presented in the CIM Social Media Benchmark report. We mentioned the infographic in our last newsletter, the full report is now available with conclusions on page 28, followed by a series of useful do's and don'ts when using LinkedIn, Twitter, Facebook and Youtube.
Using Mobile Apps, QR Codes and Augmented Reality.
Recently I presented at the event: Mobile Apps in the Built Environment. Travelling home on the train I considered the marketing mix and the challenge of combining offline with online communications, which I compiled into a blog article, summarising the benefits of Apps, as well as how best to make use of QR codes. Another emerging marketing channel for the product manufacturer is augmented reality or AR and here is a YouTube clip that demonstrates this nicely. |
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Forthcoming events
Winning with BIM - 25 April - London
A half-day seminar for those responsible for marketing and business development in construction product manufacturers or professional consultants who wish to understand what BIM can do for their business.
Marketing in the Construction Industry - 02 May - London
A one-day training course specific to the construction industry, ideal for those with marketing experience but who are new to construction, or as a refesher for the more experienced construction marketer. It puts marketing theory into context using industry examples.
The Building Centre 80th Anniversary Celebrations - 03 May - London
Live music, seminars, talks, debates, film screenings, product demonstrations, have-a-go activities and a big party on the crescent!
Digital Communications in Construction Marketing - 16 May - London
A half-day seminar for those responsible for marketing and business development in construction; product manufacturers, contractors or professional consultants who are seeking to understand the changes in digital marketing and communications, and how they can harness the innovation to help their business.
Creating a Winning Award Entry - 13 June - London
A half-day seminar exploring what things people do that help them win, and the things they do that make them lose. Anyone who is involved in preparing awards entries for their company will find this useful, and will find it helps get their entry on the shortlist, and in the public eye. |
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 Chris Ashworth
Competitive Advantage Consultancy Ltd |
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