The construction industry is a complex one with many factors influencing decision making. Whatever your role you need to be familiar with these and their implications if you are to be effective. Here are 5 actions you can take to understand construction markets.
Know how the industry works
To understand why things happen the way they do, you need an industry overview, understand some of the history of how the industry got to where it is today, the different sectors, the influence of government and the role of legislation.
Monitor the Forecasts
Forecasts published by organisations like the CPA and Experion indicate how the different market sectors are trending. You can also get good market information from Glenigan and Barbour ABI who both publish analysis of the new projects underway, providing a fact based view of the next year or so.
Action: Regularly read industry forecasts. A summary is provided in our monthly eNews. See our blog for more information: Understanding construction market forecasts – how they can help with business planning.
Decisions are based not just on a Client’s needs for a building, but often there are other influences. In recent years there has been a lot of encouragement to adopt sustainable construction. The Building regulations are another important influencer often driving new product developments. Know these influences and how they affect your product or service.
Action: Regular reading of trade publications will keep you informed of changes in legislation and influences on product specificaiton. A summary is also provided in our monthly eNews. Our eBook Understanding the Changing Dynamics of Product Specification provides a comprehensive introduction. Or read our blog for information: The Decision Making Unit – understanding specification influence.
Know the decision making unit
Decisions about construction are rarely made in isolation, with a string of influencers; Architect, Engineer, Quantity Surveyor, Main Contractor, Specialist Contractor to name a few. The introduction of BIM is encouraging greater collaboration and also making it easier. You need to understand these roles, how they work together and how they can influence decisions of importance to your business. There are numerous research reports which can help you, or consider commissioning your own research.
Action: Stay in touch with the latest research released. The CIMCIG website is a good starting point. Competitive Advantage also provides a number of reports. Or consider completing tailored research. See our blog for more information:The 5 essential elements of an awesome research brief
While the construction industry is complex, there is a lot of support available to help you understand it.
Knowing the history of the industry provides a good foundation for understanding the construction supply chain and the Decision Making Unit.
Monitoring construction forecasts and regular reading of trade publications provides an understanding of changes in legislation and influences on product specification.
Our training: Construction Industry Overview provides a comprehensive introduction to the UK Construction Industry
We have developed a tailored construction forecasting model, personalised to reflect your business profile.
Learn how we can help you with researching the construction market
Download our Research brief template