Clemson University to Host Construction Symposium

Clemson University has announced the first annual Construction Industry Symposium sponsored by the University’s Department of Construction Science and Management. Participants will gain valuable knowledge and perspective from leading experts about critical issues affecting the industry now and insight into anticipated changes.

“The Ever-changing World of Construction: Today’s Challenges, Tomorrow’s Opportunities,” offered by Clemson’s construction science and management department, is scheduled for Oct. 18 at Le Meridien Hotel in Charlotte, N.C.

The inaugural event is expected to draw attendees from across the region — facility owners, construction companies, specialty contractors, designers, vendors and other construction industry service providers.

“This centrally-located, regional event fills a void left by typical construction industry summits,” said Dr. Roger Liska, professor and chair of Clemson’s construction science and management department. "Our information-packed agenda offers a significant amount of construction industry-related ‘intelligence,’ presented and discussed by industry leaders in one place on one day."

“Attendees will leave with an arsenal of information to help them prepare their businesses for the challenging road ahead in the construction industry," Liska added. "Our long-range plan is for the symposium to become an annual event that people will look forward to every year. We also expect this to be a beneficial learning experience for students in our construction science and management program.”

Morning and afternoon keynote addresses will be followed by panel discussions, led by industry experts, on issues impacting the construction industry today with special focus on the future.

Anirban Basu, chief economist with Associated Builders and Contractors of Washington, D.C., will kick off the morning session with “The Economist Who Loved Me.”

James Benham, president of JBKnowledge Inc. of Bryan, Texas, will launch the afternoon session with “How Drones, Sensors and Integrated Apps are Rewriting All of the Rules in the Construction Industry.”

Bill Caldwell, president and CEO of Waldrop Mechanical Services and leader of the Corporate Partners task force, will moderate. Watch an interview with Bill Caldwell.

This new symposium was developed by Clemson’s construction science and management corporate partners and industry advisory board, with support from several leading construction industry associations.

Early registration discounts are available through Sept. 2. To register, visit the Clemson Marketplace.

Economic Growth Stronger than GDP Figures Suggests

Positive news for the economy as both real gross domestic product (GDP) and nonresidential fixed investment expanded during the third quarter, according to an analysis by Associated Builders and Contractors (ABC) of today’s  release from the Bureau of Economic Analysis. GDP expanded 1.5 percent (seasonally adjusted annual rate) during the third quarter while nonresidential fixed investment expanded by 2.1 percent during that period, both building on positive results from the previous quarter.

The bureau estimated that GDP expanded 3.9 percent during the year’s second quarter, while nonresidential fixed investment was revised upward to a 4.1 percent increase from an initial estimate of a 0.6 percent decrease. This marks the second consecutive release in which the previous quarter’s nonresidential fixed investment figure was amended from negative to positive. Investment in nonresidential structures fell by 4 percent after growing by 6.2 percent in the second quarter.

“The U.S. economy is not quite as bad as the headline GDP number suggests,” said ABC Chief Economist Anirban Basu. “Private final demand, an indicator that represents sales to nongovernmental domestic purchasers, expanded by 3.2 percent in the third quarter. Many economists consider this the most telling and persistent aspect of GDP, suggesting that the economy is healthier than some might suspect.

“The current quarter was heavily impacted by a foreseeable inventory adjustment, a stronger dollar and a weakening global economy,” said Basu. “The fact that the recovery remains in place is reflected in fixed investment data, including the categories that relate most directly to nonresidential construction. While it is true that investment in structures slipped 4 percent, this largely appears to be a statistical give-back from the second quarter’s better than 6 percent performance. Other data indicates ongoing momentum in nonresidential construction, which should be more apparent during ensuing GDP releases.

“The recovery will continue to be led by consumers,” said Basu. “Interest rates will also feature prominently in terms of determining the extent to which the recovery will be sustained in 2016 and beyond. For now, ultra-low interest rates are inducing people to invest in order to generate financial yields. This has been a bonus for nonresidential construction, but potentially may be triggering over investment in certain construction segments.”

The following segments highlight the third quarter’s GDP release.

• Personal consumption expenditures added 2.19 percent to GDP after contributing 2.42 percent in the second quarter.
• Spending on goods grew 4.5 percent from the second quarter.
• Real final sales of domestically produced output increased 2.9 percent for the third quarter after a 3.7 percent increase in the second quarter.
• Federal government spending increased 0.2 percent in the third quarter after remaining unchanged in the second quarter
• Nondefense spending increased 2.8 percent after decreasing by 0.5 percent in the previous quarter.
• National defense spending fell 1.4 percent after inching 0.3 percent higher in the second quarter.
• State and local government spending expanded 2.6 percent during the third quarter after an increase of 4.3 percent in the second.

ABC Upstate Names 2015 Council Leadership Team

The Associated Builders and Contractors (ABC) of the Carolinas announces the 2015 leadership team for the organization’s Upstate (SC) Council.

Gavin Axson, Senior Project Manager for Brasfield and Gorrie, has been named Council Chairman. He will be working closely with the 2015 leadership team which includes:
• Chris Moore, Carolina Power — Past Chair
• Kyle Dillard, Ogletree Deakins — Government Affairs
• Chauncey Tschiffely, Trinity Consulting — Workforce Development
• Rob Wess, Yeargin Potter Shackelford — Membership
• Joan Krause, KBR Building Group — Public Relations
• Brian Gallagher, O’Neal — Board Liaison
• Bill Caldwell, Waldrop Mechanical Services — Board Liaison
• Brett Caldwell, Caldwell Constructors
• Bryan Finch, Hajoca
• Dan Polstra, Trane
• Matt Stalnaker, Dixon Hughes Goodman
• Ed West, O’Neal

“ABC is the only industry association that represents the entire construction team (general contractors, specialty contractors, suppliers, industry professionals) with an equal voice,” said Gavin Axson, 2015 ABC Upstate Chairman. “This year we will continue to address the issues of an aging workforce with our workforce development programs and outreach in an effort to attract young people to the construction industry. Another critical item of focus will be membership recruitment and retention.”

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ABC Predicts Continued Construction Industry Growth in 2015

It's that time of the year when the economic forecasters release their predictions for the next year. One of my favorite economists is The Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. In Basu's ABC forecast, he sees a steady and ongoing economic recovery for the U.S. commercial and industrial construction industries in 2015. Basu believes the industry recovery in 2014 should continue in 2015, with momentum especially growing in segments closely related to the current American energy and industrial production resurgence.

“ABC forecasts nonresidential construction spending will expand by roughly 7.5 percent next year,” said ABC Chief Economist Anirban Basu. “The segments that will experience the largest growth in construction spending in 2015 include power (e.g. natural gas-related construction), lodging (leisure and business spending), office space (professional services employment creation) and manufacturing (rebounding industrial production).

“The public sector will see far more sluggish growth in construction spending,” Basu warned. “However, this fits a multi-year pattern with private nonresidential spending exceeding public nonresidential spending by 28 percent in 2014, up from 15.6 percent in 2013.

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Leading With Marketing

Successful construction firms don’t view marketing as an expense, but rather a strategic approach to business. The “leading with marketing” philosophy embodies how a company approaches its business, marketplace and clients. When companies lead with marketing, they choose which markets to target, what services to offer, how to differentiate, how to communicate and how to win.

Marketing is the art and science of creating awareness, delivering value, selling services, satisfying needs and getting clients to buy again. While marketing is an integral part of the business world, too many construction firms do not understand how to use and apply marketing tools and strategies. Now is the time to take the lead and embrace a strategic and integrated marketing program.

Defining the Role of Marketing
The role of marketing within a construction firm should focus on understanding, creating, communicating and delivering value. A construction firm’s marketing strategy must set the direction and scope of the organization while supporting the company’s business plan and strategic objectives.

Ultimately, the role of marketing is a summation of activities designed to identify opportunities, win projects, satisfy client needs and win more work. Contractors earn revenue by successfully completing profitable projects. Marketing efforts must be built around strategies and actions that position the firm to get more profitable projects.

Establishing a Competitive Advantage
Every day, more firms enter the construction market, and existing firms grow and diversify into new markets. To survive and thrive, contractors must establish a competitive advantage.

A competitive advantage can be derived from a number of sources, but ultimately it is based on the value a firm brings to its clients. This value can come from a unique combination of resources, a cost advantage, a market position, niche focus, financial resources, relationships, reputation or experience.

Differentiating from the Competition
Differentiation is the process of distinguishing services from the competition. Not all construction firms are the same, but not every company capitalizes on its differences. Part of the marketing process is to identify those differences and turn them into meaningful value propositions.

The client value proposition consists of the sum of benefits and value derived in return for payment of the product or service. In other words, it’s what clients get for their money. For construction firms, the value proposition shouldn’t speak to the services offered; rather, it should focus on the benefits clients derive from those services.

Positioning
Deciding how to position a firm’s products and services needs to flow from its business plan and align with its differentiation strategy.

Positioning is the process by which a company creates an image or identity for a particular service or brand in the minds of its target audience. A position is considered relative in comparison to competitive offerings. Ultimately, positioning should help the client answer the question, “Why should I buy from you?”

Messaging Well-developed messaging is the backbone of branding. Given the rapid pace of technology today, the marketing message has taken on new forms and is engaging with audiences at an unheard-of rate.

With the Internet, mobile technology and digital media, clear marketing messages can have a far-reaching impact. The development of an effective marketing message is essential to building a brand and implementing a marketing strategy.

Integrating Marketing Communications Marketing communications are designed to deliver a clear, compelling message to the right decision-maker or influencer. However, more ways to communicate this message exist than ever before. Marketing efforts must continue to more effectively build brand awareness and preference, while also delivering a measurable return on investment. Savvy construction marketers increasingly embrace the concept of integrated marketing communications—a strategic approach designed to harness all aspects of marketing communication tools to work in coordination as a unified force.

Marketing as a Strategic Thought Leader
Marketing, whether an individual or a department, must strategically look at the key drivers to the company’s success and growth and help align resources to deliver profitability and build value.

To truly lead with marketing, a firm’s marketing strategy must be an ongoing, dynamic process that enables a company to focus its resources on the right opportunities to increase profitability while satisfying the clients’ needs and achieving a sustainable competitive advantage.


Construction firms lead with marketing to:

Thie article orginally appeared in the September 2012 issue of Construction Executive Magazine

By: Brian Gallagher and Kimberly Kayler

• frame the company’s vision and direction;
• gain commitment to strategy;
• research, target and segment markets, as well as understand client needs;
• make strategic choices and decisions;
• align resources to grow and invest in the business;
• define the company’s competitive advantage;
• differentiate offerings and define the company’s value proposition;
• define strategies to target and communicate with audiences;
• link marketing, business development and account plans;
• demonstrate a return on investment;
• uncover unmet client needs;
• establish a basis for how the company creates, delivers and manages client value;
• set objectives, strategies and metrics;
• measure performance; and
• make a profit.

Brian Gallagher, director of marketing for O’Neal, Inc., and Kimberly Kayler, founder and president of Constructive Communications, Inc., are co-authors of Leading with Marketing. For more information, email bgallagher@onealinc.com or kkayler@constructivecommuncation.com, or visit www.leadingwithmarketing.com. 



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