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Construction Market Activity - October
This week the ONS released its construction industry data output for August. This shows that the total construction output for August is estimated to be 11.6% lower than August last year. Unfortunately the reliability of the ONS data is questionable, with them making significant corrections recently and now admitting that there was an error in their formula, which contributed to a recent change from a fall of 0.5% to a fall of 15% in output for the Commercial sector. Possibly more reliable are Glenigan who reported that the underlying value of construction project starts is 11% lower than a year ago.
The Construction Products Association published its latest construction industry forecasts. These are more pessimistic than the Summer edition, predicting a 6.3% fall in construction output this year followed by a further fall of 1.4% next year. They expect construction output will return to growth in 2014.
Despite the bleak forecasts for construction output, the national housebuilders have been able to make the market work to their advantage and grow profits. Latest to announce are Redrow PLC showing an increase in pre-tax profit of 70%, and Bellway with a 57% increase in pre-tax profit.
The Nationwide House Price Index shows that in September house prices fell by 0.4%. This means that house prices are now 1.4% lower than one year ago, according to Nationwide. The Halifax House Price Index has reported that house prices were 0.5% lower in the three months leading to September than in the preceding 3 months. Like construction activity, the averages hide the divide between the area inside the M25 which is showing stronger performance compared with the remainder of the country.
Mark Prisk has made several noteworthy announcements over the last month. The first is that £1billion will be used to help boost the economy by spending it on improving sub-standard council homes, this has the potential to create immediate demand, unlike many of the previous infrastructure announcements with long lead times. Another announcement is that there have been the first allocations of £240 million to help first time buyers (and National Housebuilders) benefit from the FirstBuy scheme. Mr Prisk has also said that £40 million will go to 41 developers to help first time buyers. |
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Regulations & Initiatives - quick update
The Green Deal was launched this month. Described by the Government as a 'soft launch' the real activity will start at the end of January 2013 when the legislation comes into force which makes the funding mechanism operational. In preparation there have been a number of documents published:
For a summary of the situation with the Green Deal visit the Competitive Advantage website.
Away from the Green Deal, the House of Commons Committee of Public Accounts report Assurance for major projects was published yesterday. The report informs HM Treasury's decisions on project funding. The All Party Parliamentary Group for Excellence in the Built Environment launched A better deal for public building report. |
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New Report: Marketing Activity & Spend
Now in its second year, this is a useful research report to aid the planning of marketing budget's. The report acts as a benchmark in preparing your budget, with information provided by construction industry companies representing manufacturers, contractors, suppliers and professional services firms. The report costs £50 + VAT.
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Sustainability - a lesson from those doing it right.
The architect is probably the most important member of the design team, distilling the requirements and advice of the other members. Recently Competitive Advantage completed research into how Architects design non-residential sustainable buildings and the information they need from manufacturers.
As part of this one of the questions we asked architects was who they considered to provide good information about sustainable products. We then spoke to these manufacturers to get there take on sustainability. So what can we learn from those in the industry that are doing it right? read the full blog article here.
To learn more about the research and to purchase as copy please visit our website. |
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Marketing Research - deciding on an interview method
Our final blog in the Market Research series reviews the different channels available for conducting research, together with the advantages and disadvantages of these. Market research can be executed using different channels, you can gather answers to your questions through online surveys, telephone, face to face, as part of a focus group or indeed a combination of these.
So what are the merits of these channels and how best are they utilised?
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What's being said - a round-up of useful marketing items
BIM builds in momentum
Since writing a blog entitled Don't Ignore BIM in May this year the subject seems to have grown in momentum. At a recent CIMCIG seminar: The Changing Face of Specification - getting leverage from new technology, BIM was the focus for many attending, with the architect Paul Fletcher giving his take on it, the slides are available on the CIMCIG website.
Recently the NLA hosted a conference: BIM - From Work Stages A To M. The final session of this conference was an interactive Q&A session and the conference review summarising this proves interesting reading.
For a more in-depth understanding of the Adoption of BIM then consider purchasing our report. We interviewed 80 architects' practices, 50 engineers' practices and 20 main contractors. The report reviews how the software is used and how it influences product selection, identifying changes in influence on specification as a result of BIM implementation.
For further BIM information the Construction Industry Council are delivering 11 events over the coming weeks across the UK. The BIM Regional Hub Events - A BIM Focus promise to educate attendees on all things BIM and they are free to attend.
ROI and measuring success
With the Construction Marketing Awards shortlist announced I thought it only right to provide some useful reading material on measuring the success of your marketing.
I recently read a blog by Maine associates which presents interesting figures following research by the Fournaise Marketing Group. It suggests that CEO's want marketers to report on demand-related indicators, such as lead generation, rather than performance metrics. An important reminder to think carefully about what you measure.
The CEB blog provides an overview of their recent survey, where over 1900 customers were contacted to uncover insight regarding B2B purchasing behaviour. In their write-up they say: "Marketing will need to act as a Sales rep without actually becoming one." It gives some interesting stats around the sales funnel, something I recently wrote about in my article entitled: Keep the pipeline full.
Finally if you are looking for a more hands-on practical approach then Pauley Creative provide this in a blog entitled: measuring marketing campaign performance. And for a refresh on your overall marketing strategy how about this infographic from Smart Insights.
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Forthcoming events
The Construction Marketing Awards: Shortlist announced!
Congratulations to all those shortlisted. The Awards dinner is being held on the 6th December at the Radisson Blu Portman Hotel. Buy your tickets online now!
Construction Industry Overview: online training
I will be delivering the course in modules, with the first one hour session being on the 22nd November at 12.30. This session will provide a history of the industry, providing background to why today's industry is shaped the way it is. This first module is free to attend with subsequent modules being charged at £45+VAT.
To express an interest in attending and for further details please email helen@cadvantage.co.uk |
