Marketing budgets are set to grow this year in 62% of construction related companies while 26% are expecting to increase their headcount. ‘Focusing on core business’ has moved to the top of the strategic agenda, along with ‘Recruitment, training and retention of staff’.
The April 2016 ‘State of the Industry’ construction barometer, completed by senior executives from across the construction supply chain, was published by construction market research specialists Leading Edge, in association with CIMCIG (The Chartered Institute of Marketing’s Construction Interest Group) and Construction News.
The average forecast increase in marketing spend for the next 12 months is 0.8%, down from 2.0% in the last survey in October 2015. Mel Budd, Director at Leading Edge commented, “the findings show that the majority of companies are planning a small increase in their marketing budgets while around a quarter are also looking to increase the headcount within their marketing department”.
In terms of sales performance, 72% of companies improved their sales over the past 6 months, compared with the same period a year before. This is a very similar performance to the previous survey (73%). 56% of companies are positive about their sales performance over the next 6 months, expecting sales to continue to grow, while 19% are expecting to see a decrease.
Mel commented, “the housing sector continues to be the sector that companies are most positive about while regionally, the Midlands and North are catching up with the South East in terms of expected growth”
When asked what the key issues were for companies over the next 12 months, ‘managing the impact of falling market prices’, and ‘managing the impact of falling margins’ were the two strategic areas with the highest growth rate compared to 12 months ago.
Mel added that “despite the market growth, 62% of companies are expecting that aggressive low prices from competitors will impact on their chances of winning work over the next 6 months, while 44% of companies believe a lack of key staff is likely to restrict sales growth.”
To download the ‘State of the Industry’ barometer report, please go to http://www.lead-edge.co.uk/downloads-and-reports/construction-industry-barometer/