Construction Sales and Marketing Newsletter

May 2014

Welcome to this month's edition of the Construction Sales and Marketing Newsletter. The housing sector is continuing to lead the construction recovery, yet some are warning of a housing bubble as well as supply shortages, rising costs and skill shortages. There are indeed new opportunities out there but also threats, our new tailored market forecast can help you identify them.

With the market evolving we take a look at how to get the most from your specification activity and how to go about recruiting a specification salesperson.

Finally please take a look at our new website! we would love to hear your feedback.

Construction market activity

The ONS has released its figures for Output in the Construction Industry March and Q1 2014. These figures show that construction output in Q1 2014 has increased by 0.6% when compared to construction output in Q4 2013. Output has risen by 5.4% when compared to Q1 2013, which is attributed to a total combined increase of 1.5bn in total new work and repair and maintenance. The Construction Products Association has also released their Spring Forecasts for the Construction Industry, highlighting that the industry is expected to grow 18% by 2017, adding an extra Ł20bn to the UK economy. The Construction Trade Survey shows four consecutive quarters of growth in activity for the first time in six years, although it also raises concerns about rising costs and skills shortages.

The growth of the construction industry is supported by the April Markit/CIPS Construction Managers Purchasing Index falling slightly from 62.5 in March to 60.8 in April, which is still significantly higher than the threshold of 50.0 and remains above the survey average of 54.3. The survey also indicates that housing activity growth is approaching a 10 year high.

The Nationwide House Price Index has reported that house prices increased by 1.2% in April 2014 making them 10.9% higher than April 2013, which means annual house price growth is in double digits for the first time since April 2010. Yet the Halifax House Price Index reported a fall in house prices of 0.2% in April 2014, although their annual house price index still reports a growth of 8.5%.

With house prices rising so quickly, they are starting to pose a problem for first time buyers. According to The Economist house prices are not yet unsustainable but could become so in the near future.

This return to growth has caused construction firms to be the most confident they have been since the start of the recession, yet some are warning of a supply shortage in the near future and bloating land costs posing a hindrance to recovery. To identify potential opportunities and avoid threats then consider our tailored market forecast, contact us to find out more.

Regulations & initiatives - a quick update

The government has announced 8 major renewable projects which by 2020 will provide up to Ł12 billion of private sector investment, supporting 8,500 jobs, and a possible 4.5GW of low-carbon electricity.

Bidding has opened for the Ł50 million Local Growth Fund which will go towards unlocking housing developments ranging from 250-1499 units.

A circular letter has been issued by the Department for Communities and Local Government detailing new Green Deal Measures, to be introduced later this year. The letter also sets out changes to the notice of approval for the calculation methodologies for CO2 emissions, fabric energy efficiency and energy performance certificates for new buildings.

In March 138 Green Deal assessments were lodged, the highest number in any one month to date. Recorded Green Deal plans have reached 2000. Of the ECO measures, 34% were for cavity wall insulation, 315 for boiler upgrades and 22% for loft insulation.

From June, people in England and Wales will be able to get up to Ł7600 back through a new Green Deal Home Improvement Fund

A Construction Supply Chain Payment Charter that sets out payment terms of 30 days has been agreed by the Construction Leadership Council (CLC),

The Department for Business, Innovation and Skills have published the Industrial strategy progress report, which highlights the achievements, latest activities and future priorities of industrial strategy. The progress report provides an update on the eleven key sectors including construction.

The House of Commons Environmental Audit Committee has published its Thirteenth Report: HS2 and the Environment.

The House of Commons Communities and Local Government Committee has published the results of research on the nature of planning constraints.

Building Information Modelling - a quick update

Following BIM Show Live 2014, the launch of BIM4M2 and a special BIM issue on the 2nd of May by Construction News the BIM debate is increasing in intensity.

A recent blog from CONSTRUCT UK presents what architects expect from manufacturers of building products to become BIM ready. SpecifiedBY have developed a BIM Dictionary. Sustme together with CIBSE have published a ranking of the top 500 influencers active on Twitter in BIM.

CIBSE, BRE and the NBS have all been successful in the initial stages of the competition: a digital tool for building information modelling. These entries detail some interesting initiatives which will impact on how the building product manufacturer approaches BIM.

The NBS has issued a review of BIM Show Live 2014. They have also recently published two interesting publications: The NBS National BIM Report 2014 and The NBS Specification Survey 2013. Both provide useful insights into how the specification processes are changing; factors which will be reflected in my training modules and a topic I cover in my blog: Are you getting the most from your specification activity? On a similar note a RIBA Insight article looks at how Specifications are changing.

The NBS National BIM Report 2014 details the following key findings: In the last year 54% have used BIM on at least one project - 15% more than in 2012; 93% of those who know about BIM believe they will be using it by 2016; A majority of active BIM users have reached 'level 2' BIM.

Construction market forecasts - how they can help with business planning

With a cautious return to growth it is important to keep informed of changes in the construction market and its sectors. With this in mind this blog looks at how to use construction market forecasts to inform your business strategy.

Read the full blog article here.

We would also like to tell you of a new service, we can provide a construction market forecast tailored to the opportunities in your sectors. This exercise is relatively low-cost and can help you anticipate any potential threats and indeed be well placed for new business opportunities. Contact us to find out more.

Are you getting the most from your specification activity?

NBS have just published their latest Specification Survey and it provides some invaluable information about the evolving specification process, as well as some clues for improving specification sales activity. This blog details a few points for you to think about. For my part I will be updating my training module "The Specification Process" which forms part of the Specification Strategy training series, available as an in-house training course or as an open course. If you want to develop your company's specification strategy then contact us for more details.

Read the full blog article here

Recruiting a specification salesperson

With the UK construction industry strengthening we have been asked by a few of our clients how to go about recruiting more sales staff. Identifying a candidate with the myriad of skills required to specification sell is a challenge. This blog identifies ways to approach this challenge with a look at what makes a good specification salesperson.

Read the full blog article here.

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

We have launched a new website! www.cadvantage.co.uk

Our new look website is now mobile friendly and incorporates our blog, now called the Construction industry knowledge hub. Although newly launched our website will remain a work in progress, so any suggestions for improvements we would love to hear from you.

CIMCIG and CIB recently hosted a round-table discussion with marketers from leading construction manufacturers. In my article I summarise the discussion which looked at how the marketing needs of the industry are changing, with debate about communication channels, brand and customer relationships.

With BIM such a hot topic, I thought this article was refreshing: 5 top barriers to effective collaboration at your construction company. After all BIM in its essence is about collaborative working. A survey by Buildshow reveals demand for industry exhibitions. Conti has taken on a new graduate to produce an elevator pitch that offers a fresh approach. A recent blog by Pauley Creative takes a look at the 14 key stages of building a product manufacturer website.