Marketing Budgets Set For Major Increase
SPENDING on marketing by big companies in the construction sector, including flooring, is set to rise significantly in 2015.
This is a conclusion in the latest ‘state of the industry’ barometer from Leading Edge Management Consultancy in association with Construction News and the Chartered Institute of Marketing’s Construction Industry Group.
Key findings for 2015 include:
74% of companies are planning to raise their marketing spend over the next 12 months while 48% are expecting to grow their headcount;
57% cited aggressive pricing from competitors’ as a major barrier to winning work in 2015; and
87% improved their sales in past six months compared with the same period in 2013 and 57% are positive about their sales growth for the next six months.
The results are based on a survey of senior directors and managers from across the construction supply chain and with data back to 2008.
The report has a detailed analysis of attitudes and expectations on sales and marketing performance in the construction industry.
In particular, the survey shows how the construction industry is performing in terms of market conditions, sales levels, marketing budgets and headcounts.
Respondents to the survey were taken from the following sectors: Manufacturers (55%); contractors (26%); distributors (13%); and architects, etc (6%).
Among the questions was: What barriers is your company likely to face when trying to win work over the next 12 months? Answers included: Aggressive sub-price tendering from competitors (57%); Lack of resource to respond to market / client demand (36%); lack of established reputation in new market(s) (23%); none – we are not facing any barriers (21%); not on clients’ core list of suppliers / not winning places on frameworks (16%); and length of time / resource required on prequalification process (16%). T: 01252 279990
This article has been reproduced from the Contract Flooring Journal. You can find them at www.contractflooringjournal.co.uk.