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Feb 04 2019

Marketing & Business Development: How Many “Touches” Before a Sale?

Marketing Channels

by Scott D. Butcher, FSMPS, CPSM

“How many licks does it take to get to the Tootsie Roll center of a Tootsie Pop?” If you were a kid growing up in the 1970s, you heard this question in a series of commercials in which a boy queried a cow, fox, turtle, and owl. While the boy was busy doing his research (and if you care, research by Purdue University students found that it takes an average of 252 licks!), the minds behind the advertising campaign were also doing their own: how many exposures – or touches – does it take for someone to take action, like purchasing a Tootsie Pop?

This is a question that advertisers have asked since the earliest days of advertising.

Flash back to when Gone with the Wind and The Wizard of Oz were providing movie-goers with an amazing experience; advertising executives were diligently contemplating the number of marketing touch points required to make a sale. At its core, this 1930s-era advertising research was about reaching prospects multiple times in a short period, typically through advertising messaging. Later named “The Rule of 7” by Dr. Jeffrey Lant, the concept posits that you must “touch” a prospect 7 times within a defined period before they will become aware of your product or service and take action.

This generalized rule has been applied everywhere, from “A prospect must see your advertisement 7 times before they establish name recognition” to “You must contact a prospect 7 times before they will buy your product.” Sometimes it is transformed into “You must contact 7 prospects to get a meeting, and you must have 7 meetings to get a sale.”

The reality is that these figures aren’t hard-fast, and the rule is really no rule at all. Especially in the 21st century.

Frequency Builds Familiarity

When originally created, the 7-touch concept was mostly about advertising messaging and the importance of frequency to build familiarity. Consumers didn’t have access to information, so they had limited say in how much information they received and when they received it.

The game has changed greatly over the nine decades that this “Rule” has been around. Think about the transition from going to a theater to see a motion picture to owning a TV to owning multiple TVs to having a computer to accessing the Internet to having a smartphone in your pocket or purse! Bruce Springsteen’s 1992 song, “57 Channels and Nothing On” seems quaint by today’s myriad options for media consumption. (He ended up shooting his television at the conclusion of that song!)

Studies have found that in the 1970s, the average American was exposed to about 500 marketing messages a day. Today that number can run as high as 5,000 to 10,000 marketing messages a day. In other words, marketing has become noise to most of us. I may be a marketing professional, but I’m also an expert at tuning out noise – as we all are.

Consumers today – whether purchasing a microwave or commissioning architecture, engineering, and construction (A/E/C) services – are far more savvy than their predecessors, and have an entire arsenal of information at their disposal. Studies have found that as much as two-thirds of the buying process has already taken place before a buyer reaches out to a potential provider of services or products. In the consumer products world, that means that you’ve done your research, checked out Consumer Reports, read online reviews, and you’re pretty far along before you decide to head to Best Buy or Lowe’s to check out that new refrigerator. You think you know what you want, but now you want to see it in person, perhaps to verify that your research is correct.

But what does this process look like in the A/E/C market space?

First of all, it is inaccurate to conclude that the buyer of A/E/C services is two-thirds through the process when they contact you or send you an RFP. They may only be 20% through the process – or 80%! However, they have access to tons of information about your firm (and your competitors), and they can do much of their research when you are not around, thanks to online content.

Marketing messaging is all about channels, and today there are so many channels to reach your clients and perspective clients:

  • In-Person Meetings
  • Telephone
  • Email
  • Text
  • Direct Mail
  • Social Media
  • Website
  • Blogs
  • Articles – online, in print
  • Presentations
  • Networking Events – society meetings, trade shows, conferences
  • Advertising – online, in print, broadcast media
  • Podcasts
  • Proposals
  • Brochures
  • Case Studies

And the list goes on and on. Notice that while some of these examples involve active direct interaction between the buyer and seller (like a phone conversation or meeting), many other approaches are more passive, like checking out your firm’s website or LinkedIn profile.

Sometimes, one channel can be highly effective. Mutual trust and lasting relationships can be forged through in-person meetings, and few buyers of A/E/C services would make a purchase “sight unseen” (unlike that impulse buy you had Alexa make for you last week).

In some cases, a blog, article, or website can provide a high-quality lead that ultimately leads to a contract. For my training, facilitation, and consulting services, I’ve landed several clients based upon my website or a blog post.

Often, however, it is a combination of several of these channels that lead to an opportunity and eventually a sale. Maybe you connect with a prospect on LinkedIn, they see your post about a company blog, and click through to read it. When you reach out to them via phone or email, they are willing to talk with you because they’ve sampled the merchandise (experienced your firm’s thought leadership in a blog), so they agree to take your call – or even schedule an in-person meeting with you.

In this scenario, it has taken multiple touch points between you, your prospect, and your company just to get to that face-to-face meeting, which may or may not lead to a real opportunity.

I’ve seen a lead come from a single touch, and I’ve experienced how dozens of touches have turned into nothing. So the Rule of 7 is more concept than rule. However, as a concept it still holds true, although “7” may be “17” or even “70,” depending upon where the prospect is in their buying journey. They might not have a project today, but will in two years – so a lot of touches need to take place so you are not “out of sight, out of mind” when they are ready to move forward. This is critically important – design and construction services are not impulse buys – our clients are very deliberate and the sales process can take months or even years.

There’s an oft-quoted sales metric that may or not be true that states that only 10% of salespeople make more than three contacts with prospects yet 80% of sales are made on the fifth to twelfth contact. In other words, the majority of business developers send an email or two, or leave a voicemail, and give up when they don’t hear back.

More concrete research from Rain Group has found that the most effective salespeople can schedule an in-person meeting in five tries, while the average is more like eight. That’s eight touches to set up a meeting – not eight touches to make a sale. In fact, the same research found that 58% of sales meetings are not valuable to buyers. Rain Group focuses on professional services, so their metrics are very useful for A/E/C firms.

Business moves so fast today that the original idea of 7 touches over 18 months is almost a guarantee for failure. You don’t want to inundate your prospect with sales and marketing messages, of course, but if you only send one message per quarter, you’ll most likely be forgotten – or at least be forgettable.

Your Call to Action

What should you do with this information? Identify your Top 20 prospects (can include former clients), and map out a full year of messaging for each one. How do you plan to touch them? In most cases, an in-person meeting should be a primary goal. However, they’re probably not going to meet with you every month of the year, so how are you going to keep your name in front of them? Sending personalized emails and company eblasts? Leaving voicemails? Mailing postcards? Joining the professional society they belong to? Networking with them at trade shows? Connecting with them on LinkedIn?

Out of sight is not just out of mind, it is out of opportunity. Be visible but not annoying. Add value but don’t disrupt. In the iconic movie (well, iconic if you are in sales and marketing!) Glengarry Glen Ross, Alec Baldwin’s character drove home the importance of the ABC’s – Always Be Closing. The 1992 film followed four real estate agents trying to sell undesirable property, fighting for their jobs. In today’s world, perhaps the ABC’s should really be Always Be Connected (or Always Be in Contact), because if you’re not, your competitors certainly will be.

Let the concept of the Rule of 7 drive your sales and marketing efforts, but don’t be surprised when it takes way more than 7 touches to generate a real opportunity!

Do you have a plan of action to stay in front of your clients and prospects? Are your project managers great at communication during a project but neglect that client when they move on to the next project? jdbIQity offers customized training to build your your project managers and technical staff into better seller-doers.

Connect with Scott

  • LinkedIn: https://www.linkedin.com/in/scottdbutcher
  • Twitter: https://twitter.com/scottdbutcher

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Written by Scott Butcher · Categorized: Business Development, JDB IQity, Marketing, Seller-Doer · Tagged: Business Develompent, Marketing, Sales, Seller-Doer

Jan 02 2019

Stop! Should You Really Submit that Proposal?

 
By Scott D. Butcher, FSMPS, CPSM

Note: this blog post originally appeared as a LinkedIn Article as “Proposals: Red Flags and Dirty Tricks.”

If you’ve spent any amount of time creating proposals, then you’ve undoubtedly seen all sorts of questionable behavior by proposal requestors. Sure, they send out an RFP (or post it online), asking for responses, acting like they want many proposals in order to make an informed decision. And then then they create traps to disqualify those proposals so they don’t have to read them. Some common approaches:

  • Extremely tight proposal deadlines making it almost impossible to respond
  • Limited number of pages, making it almost impossible to be responsive to the RFP criteria
  • Strict requirements on font, point size, spacing, etc. – little things that make it easy to get your proposal disqualified (“You used 10-point font size? Off with your head!”)
  • Vague language with no knowledgeable person to contact for clarity
  • Highly restrictive requirements for staff experience, license/certification, or relevant past experience
  • Outrageous project schedule requirements or contract terms (that may not even be insurable)
  • Continually revising the RFP and changing the requirements / scope while not changing the due date

These are all red flags that demonstrate the pitfalls of responding to a proposal unless you really know the client/agency and have an established rapport with them. That’s not to say that you need to have a deep relationship with every client you submit a proposal to (how often are the final decision makers / selection committee members “hidden” to the proposers, anyway?), or even that a good relationship would prevent some of these behaviors. Rather, these are clues that if you’re not “in the know” about the opportunity, then you shouldn’t waste your time submitting a proposal (the proposal requestor doesn’t want it, anyway!).

In many cases, your competitor very well may have written the RFP document. They wrote it so restrictively that only their firm could check all the boxes! And you know what? You’d do the same thing if given the opportunity (and many of us have). However, there’s also a trap here. Another bad behavior you’ll come across is the proposal requestor that reaches out to you for a proposal and detailed scope of work to a project that may not be well-defined. “What do you think this project will take?”, they ask. And then after you spend many hours pulling something together, everything goes quiet – or you get ghosted. You thought you had a 95% probability of being awarded the project, yet they won’t even return your calls or emails. And then, low and behold, one day an email arrives from that prospect. Unfortunately, it contains a Request for Proposal which just happens to include that detailed scope of work you developed – almost verbatim. And they sent the RFP to your competitors, as well. So essentially you did all the legwork for the RFP, and now you have to bid to get the project.

Most of my time is spent in the architecture, engineering, and construction (#AEC) space, but I’ve been involved with proposals from other perspectives as well, particularly in the nonprofit realm. Recently I saw some of the same old red flags and dirty tricks in an RFP – as well as a new one! These included:

  • Sending RFPs to groups that had no business in actually responding – they didn’t have the qualifications or the capacity
  • Including RFP requirements so time-consuming that it would be impossible to comply in the allotted time
  • Including RFP requirements so cost-prohibitive that few (if any) recipients could submit a truly responsive proposal

You may be shaking your head because you’ve seen this kind of thing before. But here’s the new one:

  • Not publishing any limitations on word count or file size (only that the proposal must be electronically delivered in a single Word document), and then rejecting any file 1 MB or larger at submission

So you could spend weeks working on the proposal, trying to cross as many t’s and dot as many i’s as possible (not that it was possible to get them all!), finalize the proposal just before the deadline (the world most of us work in), click the link to upload the file, and only once you have attempted to submit the file find out that there is a limitation on file size!

I don’t have a fundamental problem with file size limitations, but there are two glaring issues here:

  1. Not making proposers aware of any file size limits in advance.
  2. Requiring files to be less than 1 MB – what is this, 1993?

The average smart phone photo is probably 2 or 3 MB – no different than it was in the early days of smart phones, thus a 1 MB file is small by today’s standards. For most proposals, it’s downright tiny. Therefore, a 1 MB file size limit would be a “red flag” had it been published to proposers. Not disclosing that limit and essentially using it as a way to reject proposals is a downright “dirty trick”!

You can argue whether there was Machiavellian intent, or it was simple ignorance that caused the issue. However, when you look at the other red flags – before even getting to this little trick – you can clearly see that the proposal requestor had little interest in actually receiving any proposals.

They had already pre-ordained the winner – and perhaps the “winner” was the status quo. (A colleague once told me that the biggest competitor will always be the status quo.)

If you make the RFP so restrictive, invite unqualified groups to submit, and then create a layer of “security” to disqualify any potentially-responsible proposals, it’s easy to say, “We didn’t receive any proposals that met our criteria, so we are going to (fill in the blank).”

And in this case, the blank may be “proceed as planned,” “stay with our current firm,” or “not move forward with the project/initiative.”

Downstream, however, there’s a feeling of frustration, disappointment, even dejection. Large amounts of time have been wasted in pursuit of an opportunity that was never going to pan out. The opportunity costs can be staggering when this kind of thing happens.

I’m a big proponent of making quality, objective Go/No-Go decisions based upon data and facts (as opposed to the all-too-common subjective, “Sure we can do that!” decisions). And yet, there are many red flags that go unnoticed or are intentionally ignored, costing organizations huge wheelbarrows of cash and their employees massive black holes of productive time.

What are some of the proposal red flags and dirty tricks that you’ve seen?

Interested in upping your proposal game? jdbIQity offers a four-hour proposal workshop for project managers and marketing professionals to learn about best practices and proposal trends. Contact Scott Butcher at sbutcher@jdbe.com or 717-434-1543 to learn more.

Connect with Scott

  • LinkedIn: https://www.linkedin.com/in/scottdbutcher
  • Twitter: https://twitter.com/scottdbutcher

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Written by Scott Butcher · Categorized: A/E/C Industry Posts, Business Development, JDB IQity, Marketing, Proposals, Trends · Tagged: A/E/C, Marketing, Proposal, Proposals

Dec 17 2018

Seller-Doer Tools: Networking (Free Book)

Networking Skills for A/E/C Professionals

By Scott D. Butcher, FSMPS, CPSM

In previous posts within the Seller-Doer Tools series, we looked at several techniques that involve limited personal interaction with prospects and clients – content marketing, which takes many forms including blogs, and social media, which is a way to connect with prospects online and create a “virtual network.” We also looked at warm calling, leveraging a relationship or knowledge to make a connection that isn’t totally cold, and account mining, which entails developing deeper relationships with existing clients.

This post is focused on an extremely effective tool for establishing new relationships and enhancing existing ones: networking.

This also happens to be a tool that many professionals fear unnecessarily, primarily because they’ve never been properly taught how to network. There’s too much “stranger danger” apprehension among technical professionals, and a persistent misconception that networking is only for extroverts. In reality, introverts and ambiverts possess the skill set to be very effective networkers. Furthermore, you are networking every day, whether you realize it or not! You already know how to do it!

There are many resources available to help you become a skilled networker, but A/E/C industry-specific options are minimal, and many of the resources don’t delve deeply into real-world scenarios and recommendations.

Networking for A/E/C Professionals by Scott D. Butcher, FSMPS, CPSM

That’s why I wrote this free ebook, Networking for A/E/C Professionals: A Blueprint for Seller-Doers. Like several of my other books, the content began life as an educational presentation, later evolving into a book. The guide contains more than 150 tips to help you through the networking process, from pre-event planning to the event itself to post-event follow-up. You’re only as strong as your network, and thus networking skills are critical at every stage of your career, whether looking for your first job, advancing within your company, or running your own firm.

Please download the ebook by clicking on the link or image above, and feel free to share the download link with your colleagues. If you prefer a hard copy, you can order one here.

Rather than reiterate the content of the book, I want to briefly address the “why,” “what,” and “where” of networking. You could literally attend a different networking event every night of the week, every week of the month. But who wants to do that? Knowing the right places to connect is just as important as possessing great networking skills.

As Simon Sinek likes to say, “Start with why.” That’s a good place for you to begin, too. Why are you attending the networking function? There are myriad reasons:

  • Become better known in the community – meet local leaders
  • Develop firm name recognition
  • Build your personal brand
  • Meet prospective clients
  • Meet “influencers” and “connectors” – people who can help your firm gain new commissions and meet the right people
  • Gain competitive intelligence
  • Find potential teaming partners
  • Meet potential future employers
  • Catch up with friends and colleagues
  • Fill in the blank: ________

Once you determine the “why” of networking, you must next determine the “what.” What are you hoping to get out of attending an event? What is your goal? There’s an opportunity cost associated with networking – both in terms of company activities and personal time. If you haven’t articulated the “what,” don’t go. Your time is way too valuable.

After you’ve established answers to the “why” and “what” questions, the final question to answer is “where?” Where do you need to be to accomplish your “why” and “what”?

If you want to network with local leaders, then perhaps a local chamber of commerce event, economic development organization program, or service club meeting (Rotary, Sertoma, Kiwanis, Lions) makes sense.

Conversely, if you are looking for teaming partners, you may want to focus on A/E/C industry organizations like SMPS, AIA, ACEC, AGC, USGBC, ULI, etc. For those firms doing federal government work, the Society of American Military Engineers (SAME) is a great place to develop teaming relationships. These same organizations also provide excellent networks if you are looking for a job.

Prospective clients often gather in their own affinity groups. Some organizations cross multiple industries, like the International Facilities Management Association (IFMA), while others are very industry-specific, like APPA for higher education (formerly known as the Association for Physical Plant Administrators) and ASHE / American Society for Healthcare Engineering for health care.

There are many tradeshows and conferences serving the various industries, and these provide fertile ground for networking. There may even be local, regional, and national conferences and expos to consider, depending upon your reasons for wanting to network and the geographic territory you’re focusing on. In the marketing vernacular, this is your target market. Define your target market demographics (industry, organization type, organization size, geographic location, contact profile, etc.), and then focus your networking activities there.

Once you figure out why you are networking, what you are trying to accomplish, and where you should be, you can then start to plan your networking activities and build upon your skill set.

That’s where Networking for A/E/C Professionals: A Blueprint for Seller-Doers comes in. The content is broken down into easy-to-digest sections:

  • Why Networking is Important
  • What Networking Is & Isn’t
  • Who Belongs in Your Network?
  • Before the Event
  • Know Thyself
  • During the Event
  • How to Determine if Someone Belongs in Your Network
  • Potential Stories to Bring
  • After the Event
  • Grow & Nurture Your Network

The book is formatted for those of us with short attention spans – 150+ ideas/recommendations, each with a few supporting paragraphs. That way you can go back again and again to use it as a refresher!

The book also contains a list of more than 70 affinity organizations and societies, borrowed from another one of my books (Reputation Design+Build: Creating Winning Personal Brands for Engineering, Design & Construction Professionals). Additionally, you’ll find a list of resources – books that will further enhance your networking abilities should you wish to elevate your knowledge. From the back-cover, the four primary reasons you may want to read the book:

  • Discover the networking techniques that you feel most comfortable with
  • Learn to utilize networking tools to expand your contact base and develop deeper relationships
  • Analyze your current network of contacts to determine who belongs in it and how it can grow
  • Identify the most important contacts in your network and develop a Customer Relationship Management (CRM) program to maintain regular contact

The book link is a direct download, not hidden behind a wall (no personal information required), so what are you waiting for? And again, please share the link (or this blog post) with your friends and colleagues who could use a refresher or need to sharpen their networking skills!

Once you’ve read it, drop me a note to let me know your thoughts. Do you have some great networking tips or lessons learned along the way? What tips worked best? I also offer a half-day networking skills workshop and would be happy to discuss it with you. Reach me at 717-434-1543 or sbutcher@jdbe.com.

Connect with Scott

  • LinkedIn: https://www.linkedin.com/in/scottdbutcher
  • Twitter: https://twitter.com/scottdbutcher

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Written by Scott Butcher · Categorized: Business Development, JDB IQity, Marketing, Networking, Seller-Doer · Tagged: A/E/C, Business Development, Business Networking, Networking, Seller-Doer

Nov 07 2018

The State of the A/E/C Industry

State of the A/E/C Industry

By Scott D. Butcher, FSMPS, CPSM

What are the current economic conditions within the architecture, engineering, and construction industry? How are the market sectors and geographic regions performing?

There are quite a few indicators that track the health of the industry, and we’ve gathered many of the major metrics in one place to make your environmental scanning easy as you head into planning for 2019!

Click on the image to enlarge the State of the A/E/C Industry infographic, or surf here for a downloadable PDF for sharing!

Architectural Billings

State of A/E/C Industry - ABI

The first stop on this tour of the A/E/C industry’s economic health is the American Institute of Architects’ Architectural Billings Index (ABI), which is broken into several categories. Overall, the ABI for billings is at 51.1 for the latest month. As the ABI is a diffusion index, any score above 50.0 demonstrates growth over the prior month, while any score below indicates decline. The most current data available is for September 2018, and the score of 51.1 demonstrates a billings increase over August. However, the August score was 54.2, so we know that although the billings continue to increase, there is a decreasing rate of growth.

The AIA tracks Design Contracts and Project Inquiries as well. While billings is a lagging indicator – that is, the work has already happened – Design Contracts are very much a real-time indicator, capturing what is happening right now. In August, there was a retraction in contracts with a score of 49.6. However, the index rebounded in September with a score of 54.1, a significant jump. Project Inquiries is a leading indicator of future workload. The September score of 58.8 is impressive, building upon the 58.0 score of the prior month.

Additionally, with the latest ABI survey, the AIA asked architects about revenues for the year, and as an average, AIA members are projecting a net revenue growth of 7.5% for the year.

State of A/E/C Industry - ABI Geographic

The ABI is also broken into four large geographic regions. Three of the four experienced billings growth in September:

  • Midwest = 59.7 (52.5 in August)
  • West = 51.3 (54.2 in August)
  • South = 54.1 (57.0 in August)

The Midwest experienced a major increase in growth, while the West and South both reported slowing growth. However, the Northeast did not fare as well, seeing a steeper decline in billings than it had the prior month:

  • Northeast = 46.6 (46.9 in August)

State of A/E/C Industry - ABI Sector

In addition to geographic regions, the ABI is also broken into major market sectors as follows:

  • Commercial/Industrial = 50.8 (53.6 in August)
  • Institutional = 55.1 (52.3 in August)
  • Residential = 54.9 (55.6 in August)

All markets experienced an increase in billings in September, although the growth in Commercial/Industrial as well as Residential billings slowed compared to the August data.

A/E/C Employment Trends

State of A/E/C Industry - Architectural Employment

The next series of charts depicts the employment trends for A/E/C firms, based upon data from the US Bureau of Labor Statistics. All three data sets demonstrate healthy growth over the past year, although architectural employment, as well as engineering and drafting employment, both depict summer peaks and autumn declines. This is typical of prior years.

State of A/E/C Industry - Engineering Employment

Architectural employment in July hit its highest number since November 2008. Likewise, engineering employment hit a new peak in August. Construction employment has not seen the autumn decline of architecture/engineering, and October data shows the highest employment figure since April 2008.

State of A/E/C Industry - Construction Employment

Please note that the figures for September and October 2018 are preliminary.

Confidence & Momentum

State of A/E/C Industry - Consumer Confidence

Consumer Confidence in the United States, as tracked by The Conference Board, reached an 18-year high in October 2018 with a 2.6 point increase over September.

State of A/E/C Industry - Construction Confidence

There’s also an industry-specific confidence metric, published by Associated Builders and Contractors and known as the ABC Construction Confidence Index (CCI). The ABC index is broken into Sales Expectations and Profit Margin (as well as Staffing Levels), and is a quarterly metric. Second quarter data from 2018 was released in late September, and is the most current period available. Like the AIA’s ABI, the data utilizes a diffusion index, with any score above 50.0 demonstrating an increase over the prior period. Survey participants are asked about their expectations for the forthcoming six months.

The CCI for Sales Expectations climbed to 72.6 in the second quarter, up from an already-impressive 72.2. Likewise, the CCI for Profit Margin climbed to 64.5, up from 63.4 in the first quarter. The CCI for Staffing Levels (not shown) fell back slightly, from 70.2 to 69.5, but this figure is still historically high according to ABC.

State of A/E/C Industry - Dodge Index

Another relevant metric is published by Dodge Data & Analytics, known as the Dodge Momentum Index. The index is published monthly and the prior month is often revised at the same time. Dodge further breaks the data into Commercial Building and Institutional Building.

The overall figure for September demonstrates a decline of 2.6% in the index, with Commercial Buildings down 4.3% and Institutional Buildings down 0.1%. This was the second straight month of decline, although the third quarter figure is up from the second quarter. Because the index tracks the first, or initial, report of a nonresidential construction project in the planning stage, a handful of large projects can influence the index from month-to-month. Overall, the trend for the year is still positive. For benchmarking, the year of 2000 represents a Momentum Index reading of 100. This index is an indicator of future construction.

Spending, Backlog & More

Construction Put in Place is a data set published monthly by the US Census Bureau. Although it is a lagging indicator – construction has occurred – it is a useful metric for trending, and also provides a way to analyze the activity in 16 market sectors.

State of A/E/C Industry - Construction Put in Place

The data is reported two ways; first, the current month is compared with the prior month. Second, the current month is compared with the same month the prior year. For this report, I’m using the year-over-year comparison, which demonstrates that 14 of 16 markets have experienced growth over the past 12 months.

Only Communications and Religious facilities saw declines over a year ago. Furthermore, seven sectors saw double-digit growth in September 2018, compared with September 2017.

Overall, the metric is showing an 8.9% increase in Construction Put in Place compared with a year ago. Water Supply, Conservation & Development, Transportation, and Lodging were the biggest gainers, while Commercial, Manufacturing, and Health Care saw the smallest levels of growth. This data demonstrates an increase in infrastructure construction – something that has been talked about for years.

State of A/E/C Industry - Construction Spending

Another metric reported by the US Census Bureau is US Nonresidential Construction Spending, and again it is compared against the previous month as well as 12 months prior. Although the data shows a decrease in construction spending from August 2018 to September 2018, there is significant growth over September 2017.

State of A/E/C Industry - Construction Backlog

In addition to the Construction Confidence Index, ABC also publishes a quarterly Construction Backlog Indicator, broken into regions and project types. The columns on this chart demonstrate the average backlogs in months, while the circles depict variances from the previous quarter, in percent.

The average backlog is now 9.9 months, which is a new high for this index. Note that this data is for the second quarter, which is the most current data available. This is also an increase of 12.2% over the previous quarter.

Broken into regions, firms in the South are experiencing the largest backlog levels, slightly more than 11 months. The Middle States region tracked by ABC is the only geographic area not seeing double-digit backlog figures, and also the only region to see a decline, although slight, over the prior quarter.

Firms operating in all three market sectors tracked by ABC experienced growth in backlogs, with both Commercial/Institutional and Infrastructure firms seeing backlogs of just over 10 months. Firms operating in the Heavy Industrial sector report backlog averages of 7.8 months; however, this is a jump of 33% over the prior quarter.

State of A/E/C Industry - Open Construction Jobs

One final metric tracked in this report is open US Construction Sector Jobs, based upon data from multiple sources including the US Bureau of Labor Statistics. The figure for August 2018 – the most current available – was 298,000 open jobs, significantly up from the 215,000 figure of August 2017. This trend is not new, although it appears to be picking up speed as construction firms across the country continue to struggle with finding qualified employees. In addition to negatively impacting construction firms’ ability to pursue and deliver projects, the worker shortage also appears to be leading to increased wages, potentially driving inflation growth in construction costs. Stay tuned to see what impact this trend will have on the A/E/C industry.

There’s our latest A/E/C environmental scan. Are there other metrics that you regularly track?

Are you pulling together your strategic and marketing plans for 2019? Need help with planning or facilitation? Contact me at 717-434-1543 or sbutcher@jdbe.com to discuss how jdbIQity can help position your firm for a successful year (and beyond)!

Connect with Scott

  • LinkedIn: https://www.linkedin.com/in/scottdbutcher
  • Twitter: https://twitter.com/scottdbutcher

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Written by Scott Butcher · Categorized: A/E/C Industry Posts, JDB IQity, Marketing, Trends · Tagged: A/E/C, Architecture, Construction, Economics, Engineering, Environmental Scan, Trends

Oct 25 2018

The Secret Value-Add to Your Project Team: You

by Scott D. Butcher, FSMPS, CPSM

I’ve been a member of the Society for Marketing Professional Services (SMPS) for more than 25 years, and in that time I’ve contributed more than a dozen articles (solo or with co-authors) to Marketer, The Journal of the Society for Marketing Professional Services.

Below you’ll find my latest article, “The Secret Value-Add to Your Project Team: You.” The article looks at ways that marketing and business development professionals in A/E/C firms can engage with project teams to offer expanded services – billable or value-added – on projects. These include a number of approaches:

  • Provide content for client social media, eblasts, and newsletters
  • Conduct market research for the project
  • Help the client plan and manage events
  • Write or ghost write op-eds for the newspaper
  • Assist the client with media relations
  • Develop project presentations and videos
  • Prepare project talking points and value messages
  • Serve as project photographer / videographer
  • Manage components of the project that are beyond a typical design and construction project
  • Develop project graphics and signage
  • Create a project website to inform stakeholders
  • Serve as spokesperson for the project
  • Facilitate stakeholder meetings or community charrettes

The article also includes thoughts from Mandy Arnold, president of Gavin, a digital public relations and marketing agency serving firms in a number of industries, including A/E/C. Check it out:

Secret Value Add Article

Secret Value-Add

 

Copyright info for the article: ©Marketer, The Journal of the Society for Marketing Professional Services, October 2018, www.smps.org.

Connect with Scott

  • LinkedIn: https://www.linkedin.com/in/scottdbutcher
  • Twitter: https://twitter.com/scottdbutcher

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Written by Scott Butcher · Categorized: JDB IQity, Marketing, Project Management · Tagged: A/E/C, Marketing, Project Management

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