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Building and Construction

INDUSTRY FACTSHEET Industry Overview Major services in the construction industry include heavy and civil engineering projects as well as non-residential buildings, such as those for industrial, commercial and institutional use. The demand for construction depends heavily upon the health of the economy, which includes corporate profits and local government budgets. This industry is highly competitive with companies that range from small private firms to multi-billion dollar companies. Profitability of companies depends on project bids and efficiency of operations. As such, the larger companies have an advantage in their ability to become involved in multiple projects simultaneously and in different types of construction. Likewise, smaller construction companies can compete through specializing, or subcontracting on larger projects. Typical customers of the industry are comprised of property developers, corporations, institutions and government bodies. Additionally, contracts with business leaders, architects, engineers, developers and other construction firms are very important sources for leads and projects. On the promotional front, major marketing initiatives include customer visits, magazine advertising, trade publications and participation at industry tradeshows.

Business Challenges High Insurance Costs: For the most part, construction contractors pay high premiums for various types of insurance. This includes worker compensation, general liability and surety. Major insurance issues involve a variety of concerns, such as construction delays or defects, accidents by inexperience or overworked employees, and even poor bookkeeping. Safety Liability: Unfortunately, the construction industry has a considerably large share of fatalities. In effect, contractors carry liability insurance to protect against lawsuits brought forth by injuries to employees or to job site visitors. Uneven Revenue and Expenses: While contractors incur a steady stream of expenses, customer payments are periodic including payments retained even after a project is complete. Poor weather can significantly delay construction schedules and create an uneven cash flow. Additionally, prices or availability of major raw material like lumber, steel or concrete can change quickly. On larger scale projects, prime contractors may even handle more complicated cash flows, like progress payments to subcontractors.

Industry Opportunities Computer, Construction Technology: Advancements in computer technology and building techniques allow companies to enhance on project implementation. Computer technology, for instance, has reduced costs and mistakes, which is vital to an industry that relies heavily on scheduling, coordination and technical specifications. New, innovative building methods can also drastically simplify commercial projects and reduce costs and timeto-completion.

Copyright Š 2011 by Research and Management. All rights reserved.


Building and Construction

INDUSTRY FACTSHEET Green Construction: The demand is rising for environmentally-friendly construction, materials, practices and certifications. An increased use of steel has helped qualify structures as “green,” by way of its recycled content. Steel products (as opposed to wood) last longer and command a more uniformed quality in addition to significantly reducing waste. Additionally, new “cool” metal roofing is much more energy efficient than traditional building materials. Buildings for High-Growth Population Segments: Growth in population segments presents great opportunities for the commercial construction industry. For example, as the baby-boomer population segment rises in the next decade, there will be a higher need for retirement, assisted living and hospital facilities.

Digital Marketing Trends Social Media Uses for Business Information The majority of real estate and construction companies in North America use social media in their businesses to read user ratings and reviews for products and services (according to 69% of respondents). Sixty-three percent of respondents said they visit company or product profile pages on social media sites. On the other hand, 61% of companies in the real estate and construction industry attend webinars or listen to podcasts online. Reaching and downloading business-related content on third-party content-sharing sites was ranked as the 4th most common social media activity among those in the real estate and construction industry (59% of respondents). Another popular social media activity among real estate and construction companies is visiting company blogs (54%), while 48% of respondents said they use social media to ask questions on Q&A sites like Yahoo! Answers and LinkedIn forums. Other reasons that companies in the real estate and construction industry use social media for business information include: participating in online business communities, conducting searches for information, subscribing to RSS feeds of business-related news or information sites, participate in discussions on third-party sites, save businessrelated links on social bookmarking sites and use Twitter to find or request business-related information.

Copyright © 2011 by Research and Management. All rights reserved.


Building and Construction

INDUSTRY FACTSHEET Construction Companies Using LinkedIn The construction industry is among the top 10 industries worldwide using LinkedIn as of March 2011. According to eMarketer, construction companies are ranked in 9th place among the top 10 industries. With 3.2 million LinkedIn users around the world, construction companies have more of a presence on LinkedIn than those within the government industry. Other sectors that have a strong presence on LinkedIn include: recreational companies, consumer goods, educational companies, medical professionals, manufacturers, financial institutions and high tech companies.

Digital Marketing Opportunities Immediate Areas of Focus for Social and Mobile When we look at the latest digital marketing opportunities of social media and mobile for businesses in the building and construction industry, their main considerations and focus should be on how they can use these technologies to develop stronger relationships with their consumers, industry peers and suppliers, as well as raise awareness around their company as an industry leader. On the social front, building and construction companies are leveraging social technologies like blogs and forums to showcase their expertise, prove their industry leadership and voice their opinions on upcoming legislation and regulations. They utilize social alerts and review sites to monitor their brand mentions and facilitate online recommendations. They are also using Twitter and LinkedIn to network and build connections, share company news and content, and listen to what consumers are saying about their brand. On the mobile front, companies in the building and construction industry are still learning how to effectively use this relatively untapped tool. As a result, those that do move forward with a mobile strategy could have a profitable competitive advantage. To start, these companies are ensuring their websites are mobile-friendly and then looking to improve their service offerings through simple, yet effective, applications such as mobile calculators for specifiers and design tools for architects. When it comes to social technologies and mobile marketing, below is where we see the majority of building and construction companies making considerations from a strategy standpoint.

Social Technologies Blog

Facebook

Twitter LinkedIn YouTube News Feeds/ Social Alerts

Social Bookmarking

Copyright Š 2011 by Research and Management. All rights reserved.

Forums

Review Sites


Building and Construction

INDUSTRY FACTSHEET Mobile Marketing Mobile Site

Mobile Local Search

Mobile Ads/ Text

Mobile Apps

Popular Pay-Per-Click Keywords Keyword construction maison civil engineering construction jobs contractor builders construction news carpentry builder construction companies home builders construction maison construct excavation contractors construction company general contractor building construction construction equipment health and safety

Advertiser Competition 0.22 0.33 0.35 0.87 0.29 0.79 0.49 0.41 0.29 0.6 0.87 0.92 0.03 0.24 0.59 0.39 0.63 0.44 0.74 0.56

Global Monthly Searches 135000 110000 90500 49500 33100 27100 22200 22200 22200 18100 18100 18100 14800 14800 14800 12100 9900 9900 9900 60500

Estimated Cost per Click $2.25 $1.23 $1.17 $0.94 $3.34 $2.27 $0.95 $2.07 $2.47 $2.11 $3.05 $1.20 $0.44 $2.40 $3.64 $1.96 $5.01 $0.79 $1.89 $1.65

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Copyright Š 2011 by Research and Management. All rights reserved.

Building and Construction Fact Sheet by WSI Online  

Digital Marketing Building and Construction Fact Sheet by WSI Online (www.wsionline.ee_eng) Industry Overview Business Challenges Industry...