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Construction Sales and Marketing Newsletter
August 2012
Greetings!

Welcome to this month's edition of the Construction Sales and Marketing Newsletter. In this edition, to help you plan your sales and marketing initiatives for the autumn, we have pulled together a variety of information sources and articles. And don't miss our update of initiatives as there has been a surge of announcements from government since our last newsletter.

Construction Market Activity - August

The Office for National Statistics' latest construction output figures show that the total volume of construction output fell by 3.9% in Q2 compared with Q1. Volume of all new work in Q2 fell by 4.6% compared to Q1. Most sectors of construction activity shrank considerably over the last year and overall construction activity contracted by 9.5% in a year. Echoing this Glenigan reported that the total value of construction output fell by 5.2% in Q2 of 2012. 

 

In July the Nationwide House Price index reported a 0.7% fall in house prices, and the Halifax House Price index a 0.6% fall over the month. The RICS UK Housing Market Survey has reported that London is the only region recording rising house prices and that prices are expected to fall further in the coming months.

 

Some of the larger organisations in the sector have been able to weather the storm with Taylor Wimpey's half year results showing profit has increased by 170% against last years. Laing O'Rourke announced their full year results, which saw total group revenue increase by almost 8% to £4.3 billion last year, as their earnings improved slightly. Despite the tough outlook they have a strong pipeline of contract opportunities in key sectors and remain on track to deliver 2012/13 financial targets.

 

With most industry representatives calling for the government to take action to stimulate the construction sector there have been some initiatives, including the announcement of financing for the Green Deal and an initiative to try and get stalled housing sites unblocked.

Regulations & Initiatives - quick update

Registration for the Green Deal is now open, with a Providers Authorisation Guidance for Applications available which gives a useful insight into the Green Deal mechanism. A government loan of £7 million to the Green Deal Finance Company has also been announced as well as consideration being given to the infrastructure guarantee scheme for the Green Deal, which could potentially bring down the cost of borrowing.

 

As part of its support to the Green Deal, government will require all Local Authorities to report on their plans to achieve improved energy efficiency of their residential housing by 31 March 2013. This will be achieved by following the new Home Energy Conservation Act guidance. The Renewable Heat Premium Payment (RHPP) social landlords competition has also been extended with applications open until 9th October 2012 and "millions of pounds available".

 

To try and get stalled housing sites unblocked the government is launching a consultation that proposes giving developers the option to ask councils to renegotiate Section 106 obligations, if they were agreed prior to April 2010. A pilot programme with 10 councils has been put in place.

 

The government has published revised subsidies for large scale renewable projects under the Renewables Obligation covering the period from 2013 to 2017. They claim this could incentivise between £20 and £25 billion investment.

 

The Office of Fair Trading has published a report into the home insulation market. It decided to compile this following complaints about lack of competition and in view of the forthcoming Green Deal and Energy Company Obligation. In its conclusions, which sees the Green Deal process as improving the situation, it suggests that further steps might be taken to ensure even greater focus on installation quality and consumer outcomes in future.

 

DECC has announced that community groups can now apply for a share of £8m to install low carbon heating like solar thermal panels, biomass boilers and heat pumps into homes in their local area.

 

The Department of Energy and Climate Change has released 4 key publications: Digest of United Kingdom Energy Statistics 2012, UK Energy in Brief, Energy Flow Chart, Energy Consumption in the United Kingdom.

 

DECC has announced the scrapping of 86 regulations and a further 48 improved regulatory regimes. A full list is available on the DECC website.

Specification Selling - learning and development

Competitive Advantage is a leading authority on specification selling. In addition to having practical experience both in the sales role, setting up and running sales teams, we have researched many aspects of the process and organised seminars where leading authorities speak on the subject. Here are some resources we have collated to help you achieve an effective sales and marketing process.


Key to effective specification selling is an understanding of the market drivers and how these inter-relate to influence decision making. This is explained as part of our one day training seminar, being held in London on the Tuesday 16 October. The programme also explains the specification process, who the decision makers & influencers are and how they interact.


Another consideration is how new technologies are impacting on the process of specification, technologies such as LinkedIn, Twitter, Apps and BIM. CIMCIG will be hosting an event, open to all, examining this on the 27 September in London. For further information on the Adoption of BIM our research provides details on the take-up, software used and the changes in influence on specification.

 

Sustainability is now a major design influencer. Designing with Sustainable Products is a report that considers how architects select sustainable products when designing non-residential buildings and the information sources they use.


Also important in creating awareness, leading to specification sales, is the effective use of communication channels. The Construction Media Index is the only impartial research into traditional and digital communication channels used by professionals in the construction industry.


When communicating with the project team it is important to provide solutions, to establish yourself as a trusted advisor and not be seen as a salesman. We have published a series of interviews with key players in the construction industry covering communication with Architects, Engineers, Main Contractors and Specialist Contractors.
 

Finally take a look at getting a review of your specification sales activity at the Specification Sales & Marketing Clinic. This is being held on the morning of the 27th September at the Building Centre, London. Here I will be holding a series of free 20 minute individual consultations, covering any aspects of your strategy such as how your sales team can be focused, use of sales tools, maximising benefits from CPD and advice on how to communicate with architects, engineers and contractors. Reserve your place by calling 020 7692 6226. As spaces are limited you will need to supply your credit card, a £50 charge will only be applied on non-attendance.

Marketing in Construction - learning and development

Here we continue to gather together learning and development items for you, this time in relation to marketing in the construction industry.

Marketing in the Construction Industry is a one day training course, being held in London on the 10th October, designed for both those with a basic marketing understanding new to the construction industry, and for the experienced marketer looking for a refresher. It puts marketing theory into context using industry examples.

If this topic is of interest then take a look at our blog on Making sense of the construction industry - a marketer's guide.

Competitive Advantage also has training specifically designed for new entrants to the construction industry; Construction Industry Overview is a one day training course, being held in London on the 3rd October, it helps new entrants gain a better understanding of this dynamic industry. So if you have a new colleague please forward this information to them.
 

If you are looking to conduct specific market research to inform your business strategy then here is a reminder of our current blog series:
How to write a comprehensive market research brief
Part 1: customer satisfaction surveys
Part 2: perception studies

Finally don't forget our listing of free sources of market information. For example our online survey into Construction Marketing Expenditure. This is designed to provide an insight into how construction marketing expenditure is committed. It will close in early September, if you complete the survey before then you will receive a free copy of the report when published. All information provided remains anonymous and will help you compile your budgets for 2013.

Forthcoming events

 

The Construction Marketing Awards: open for entries! 
Deadline for entries is 26 September 2012. There are 17 categories, entries are free and you can enter as many categories as you wish. For further details go to http://www.cmawards.co.uk/

 

Chris Ashworth
Competitive Advantage Consultancy Ltd

 

Phone: 0844 6698728

 

Email: chris@cadvantage.co.uk 

 

Twitter: @CompetitiveA

 

Web: www.cadvantage.co.uk

 

Blog: www.cadvantage-blog.co.uk

 

LinkedIn group: Construction Sales & Marketing

In This Issue
Construction market activity
Quick update on government regs
Specification Selling learning resources
Marketing in Construction learning resources
Forthcoming events

 

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