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Marketing construction in a recession
26/02/2010

Birmingham Post, 26th February 2010

After more than a decade of plenty, the construction industry is now embroiled in extremely difficult times -  albeit it is a sector which is not unfamiliar with having its work supply turned off through no fault of its own, but as a result of the wider UK economy.   
There can be little doubt, however, that in the short-to-medium term, the situation is about to become even more difficult.
With a private commercial sector still exceedingly nervous of future challenges and residential work somewhat in the doldrums, construction has, to a very large extent and for some time now, depended on a heavily subsidised public sector for its principal source of work.  
 
But despite political spin with earnest protestations of “protection” for health and education and the double-counting announcements of “investments” to be made, even this is now under threat by both main political parties.  Indeed, any rational analysis will surely conclude that it is difficult to see how it can be avoided with the mountainous level of national debt.
 
It is true that the construction industry has survived such situations many times before and should be well versed in dealing with them. However, fewer and fewer of those that experienced them and learnt how to cope the last time, occupy positions of influence now.
 
For an increasing number of organisations, the comfort of having “work-in-progress” is now rapidly being eroded away and the need to replace it is becoming more and more vital.  
 
Indeed, the raw signs of the challenge in hand are very much in evidence and are intensifying daily in the marketplace: cut-throat competition at clearly unsustainable commercial levels; thinning of the supply chain and the application of overbearing commercial pressure; rationalisation of overheads and reduction in management; reductions in training and development; the hardening of trading terms.
 
But surely it has to be a ‘no brainer’ to try to find another way to survive rather than to carry on in the same old way, reducing prices and standards and ripping each other to pieces.
 
If you believe in your firm, your team, your product and your future, go out, raise the bar and offer something different, but better.  Even displaying a markedly different attitude towards the customer will be a real advantage.
 
It has to be said that it will be much, much easier for those organisations that have been genuinely painstaking in ensuring the complete satisfaction of their customers during the “good” times and not now just because it seems to be a good marketing ploy.
 
It is absolutely key to understand the culture and needs of those with whom you would like to do business.  Simply “force feeding” them a product or service that is unattractive and available to everyone else, in exactly the same manner, will be simply unacceptable.   Each customer is very different and, not only has a right, but will also expect to be treated as such. 
 
The industry’s traditional way of doing things is very heavily ingrained, as are those now of our customers in response.  And this will not change until we genuinely make a greater effort to offer true added value and, in doing so, justifiably earn their confidence.
 
But the industry has so very much to offer and, let’s face it, will be to whom the country will turn for support of any upturn when it comes, as surely it will.
 
Nevertheless, when customers do consider venturing out into the marketplace in such difficult conditions, it is even more important than ever that the industry, consultants and contractors alike, can point to their user-friendly credentials and previous genuinely successful achievements.  
 
Frankly, price will always remain an important factor but, if other attractive value-added attributes can be verified to be real and not just a ‘sales pitch’, they will be very compelling and have a significant value in any selection process.  Of course, most convincing of all are independently verifiable third party testimonials from respected sources as to previous and recent satisfaction that they have received in the size and type of work being considered; but they should not even have a hint of negativity.
 
Talented people are exceedingly important in any organisation and, whilst first-rate trade or professional skills will be expected as a given, a team with a positive “can-do” attitude and true integrity will surely win through.  Beware, however -they need to be committed to the project and not just be part of the sales team.
 
Due to the amount of available competition, customers can afford to be increasingly selective and any sense of lack of commitment soon becomes easily discernible.  It is paradoxical that bidders for work, even in these difficult times, all too frequently provide incomplete information, provide it late or deliver it to the wrong place!   Even where key selection criteria is identified to the bidder, it is all too often totally ignored in favour of a standard or ‘scatter gun’ approach, strongly suggesting to the customer that “this is our ‘pitch’ and you are going to hear what we want to say, not what you have asked to know.
 
Indeed, the ‘one size fits all’ culture of the industry still strongly prevails - but it is no longer acceptable.  Customers want projects centred around their particular needs and priorities and not those of their suppliers.  Can you blame them? All customers seek to select organisations that go out of their way to identify solutions to their problems, not to exacerbate them.


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