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Construction Sales and Marketing Newsletter
March 2014

Welcome to this month's edition of the Construction Sales and Marketing Newsletter. UK construction output continues to show growth, with housing still leading the way. The government is reviewing the ECO and is extending its cash back scheme with the Green Deal. At the end of March BIM4M2, a BIM sub-group for construction product manufacturers is being launched. Our new research into Brand Strength and Specification for Ceilings has been published. Other articles look at the benefits of Key Account Management and how to deliver effective CPD. 

Construction market activity

The ONS has released its Output in the Construction Industry figures for December and Q4 2013. These figures show that construction output in the final quarter of last year was up 0.2% when compared with Q3 2013. Output in December 2013 is also 2.0% higher than the previous month.  

 

With UK construction output showing growth, it has been predicted by Euro-Construct that overall construction output in Europe will grow in the period 2014 to 2016, following two years of contraction in 2012 & 2013. The growth will be moderate in 2014 with a forecasted increase of 0.9%, and more substantial increases of 1.8% in 2015 and 2.2% in 2016.

 

Markit/CIPS released their PMI data for February 2014. The Construction Managers Purchasing Index for February shows a slight fall since January 2014 from 64.6 to 62.6, but still remaining above the neutral value of 50.0. Survey respondents suggest that this slight drop is related to disruptions due to adverse weather conditions in February.

 

The Nationwide House Price Index reported that house prices increased by 0.6% in February 2014, and are 9.4% higher when compared to February 2013. This also shows that house prices are now 3% below the peak of 2007. The Halifax House Price Index reported that house prices in the 3 months to February 2014 were 2.1% higher than in the preceding 3 months to November 2013. They have also reported that house prices increased by 2.4% in February 2014, making this the eleventh monthly increase in the last year.

 

Riding on the recovery in the housing market, two large house builders have released financial results for the year up to 31 December 2013 boasting large increases in profit. Firstly Bovis Homes have reported an increase of 31% in revenue and 48% in pre-tax profit. Next Persimmon have reported an increase of 21% in revenue and 49% in pre-tax profit. Galliford Try have also released their half year financial results for the 6 months to 31 December 2013, these results show that both their revenue and pre-tax profit increased by 18% in these 6 months.

 

Regulations & initiatives - a quick update
With Ecobuild only last week there are updates on a number of the government environmental schemes.

As part of the government's move to reduce pressure on consumer bills they are to review the ECO and have issued a consultation document on ECO which ends on 16 April 2014. To learn more, or participate see Edward Davey's speech at Ecobuild.
 
The government is extending its cashback scheme in support of the Green Deal from 31 March to 30 June 2014. Some home owner rebates have also been increased; Up to £4,000 is now available for solid wall insulation (from £650), up to £1,000 for 'room in roof' insulation (from £220), up to £650 for double glazing (from £320).

 

DECC has also announced an increase in the cashback payments under the Green Deal.  Assessments totalled 145,110 as at the end of January 2014. For the measure installed under ECO, 33% were for cavity wall insulation, under the Green Deal 31% covered boiler replacement for full details click here.

 

The Renewable Heat Incentive Roadshow visited Ecobuild 2014, and has a nationwide roadshow of events planned to educate consumers and installers about the scheme. DECC has just published the fourth quarterly forecast for the non-domestic RHI scheme, total forecast expenditure for the scheme stands at £79.2m. In summary this Government environmental scheme provides financial incentives to increase the uptake of renewable heat, with domestic and non-domestic working in parallel.

 

BIM remains high on the agenda, with the NBS reporting that failure to adopt BIM could affect consultants ability to work internationally, a reminder of the cultural change required around the adoption of BIM. With this in mind the Construction Products Association are launching BIM4M2, a sub-group for manufacturers, on the 28 March, for further information email andrina.dhillon@constructionproducts.org.uk The group will also work with other BIM4 groups to establish common standards, reduce duplication and deliver the benefits of BIM.

 

The CBI are conducting a business review of the government's construction pipeline as part of the wider delivery of Construction 2025. The Construction Pipeline Survey looks to understand more about how businesses currently uses the pipeline and what more can be done to improve its value and content, results will be shared with contributors and the wider industry.

 

The Zero Carbon Hub has released its latest report continuing the work on the Design versus As-Built Performance Gap project. It states that "Products with energy performance different to the intended design are being used on site without being fed back to the design team......typically foundation block work, lintels, windows and ventilation ductwork."

New Research - Two thirds of suspended ceiling specifications are nominated  

Our new research evaluates the strength of ceiling manufacturer brands and specifications via a simple scoring mechanism based on the Net Promoter Score concept.

As part of the research respondents were asked how they specified ceilings. It was interesting to note that two thirds of suspended specifications are nominated. With performance specifications used half as much for decorative products than functional products.


Find out more

Effective CPD - An essential part of becoming a Trusted Advisor 

CPD (Continuing Professional Development) is probably one of the most effective means of starting relationships or enhancing an existing one. When well-delivered it gives credibility to the presenter, the company and its products.

 

CPD has the benefit of meeting many specifiers at one time and can often end with a discussion about a specific project.

In this blog I explore why CPD is such a valuable tool in gaining specifications.

 

What is Key Account Management?

Key Account Management (KAM) is not a simple Buyer-Seller relationship, you need to involve people from all aspects of your business and work together with your client's business to find better ways of doing things. Cost savings are achieved by re-engineering processes, reducing inventory and avoiding unnecessary activity. This blog takes a look at KAM, what it is, how you can do it to influence specification and what to consider when adopting KAM. 

Read the full blog article here 

What's being said - a round-up of useful marketing items

Hubspot have compiled a list of 151 Browser bookmarks that every marketer should install. And if you are a fan of infographics then take a look at Infographic: the six types of Twitter conversations. Jan Klin has written a blog about how LinkedIn can help your SEO. Content Marketing Institute has a blog on

Vote for our blog! 
Vote for us in the Best Construction Blog competition. Despite being run for the North American market we came 7th last year and we would like to improve on that in 2014!

 

New websites for product promotion 
A new and improved website has been launched by SpecifiedBy a summary of the improvements can be seen here. UKGBC has launched a new website called pinpoint, a platform for sustainability resources in the built environment.

 

Industry Surveys

The Construction Industry Council (CIC) 2050 Group has launched a major survey to gain an on-the-ground perspective of what inspires people working in construction today. The survey closes at the end of the month,

to find out more and to participate click here

 

Another survey is the 2014 Bid Cost Survey, the purpose of this is to assess the true scale of bid cost expenditure in the construction industry. To participate click here. Complete a bid cost survey and receive a 15% discount off the cost of attending 2014 Win Work Masterclass   

Forthcoming events
Our next webinars:
Other events include:

For a full listing of forthcoming events visit our website. 

Chris Ashworth Competitive Advantage Consultancy Ltd

 

Phone: 01276 503539

 

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
New research - brand strength and specification - ceilings
Effective CPD
What is Key Account Management?
What's being said
Forthcoming events
New Research 

5 Steps to becoming a trusted advisor

Thursday 20th March at 12.30

  

 Incorporating BIM into your Specification Strategy

Thursday 12st May at 12.30

 

Planning effective  CPD
Thursday 29th May at 12.30

 

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New ebook
Creating Awareness and Relationships with CPD  Delivering quality CPD positions you as a 'Trusted Advisor' and opens doors for discussions about product specification.
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