Recovery in the building material market from “The Great Recession” has been relatively slow, with the industry still feeling the effects. Leading economic indicators for the market projected 2014 to be a growth year, with total industry sales expected to increase by 7.5 percent. Yet, winter-weather challenges in the first quarter hit the industry with delayed projects and transportation setbacks. According to the National Association of Realtors Chief Economist Lawrence Yun, housing starts in 2014 in the U.S. are expected to total 1.4 million. In 2015, housing starts are projected at 1.5 million, just shy of the 1.7 million needed to rebalance the market. In Europe, industry executives are cautiously optimistic about slow, but positive, forecasted growth and stabilization in the construction market. Yet, growth remains behind U.S. levels.
In non-residential construction, according to the American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, “a survey of the nation’s leading construction forecasters is projecting that spending will see a 4.9 percent increase in 2014 – down from the previous estimate of 5.8 percent, with next year’s projection holding at 8 percent.” Growth in the commercial/industrial sector is expected to lead the way.
While 2015 is forecasted to be a relatively good year for building material manufacturers, concerns remain about rising material costs and energy costs. The winners coming out the recession will be the ones able to earn more wallet-share than their competitors, and do so profitably by using price as a mechanism to help manage these rising costs. However, that’s easier said than done. How do manufacturers ensure that organic growth and profit goals are executed upon in the field through each and every decision?
Sales people need guidance about where to find opportunities to expand share, and once they find them, how to quote a price that will hit profit goals and still win the business. In this whitepaper, we will discuss the challenges inherent with gaining more share profitably, and how companies can use the data they already have to align sales reps’ decisions with financial priorities for 2015.
To find out, download the full building material manufacturer industry trends report.