Planning for the certainty of uncertainty

Rockwool's Ian Exall offers his assessment of the challenges the construction industry faces in the short and medium term, and suggests some ways in which to capitalise on opportunities for growth.

Sadly, 2010 may prove to be yet another make-or-break year for many companies within the construction industry. Although there are signs that we've hit the bottom of the economic decline, the year ahead still looks like it will be one of turmoil and uncertainty, if not for all sectors then certainly for anyone involved in planning for the future.

Very shortly we'll have a clearer picture of the shape of our government for the next few years. However, since all of the major parties have already expressed concerns over the huge debt that UK PLC owes, cuts are inevitable. Construction related spending is hotly tipped to take a hit.

Government spending is not the only thing set to change. Regulatory policy is also going to have a big impact. This year will see a host of changes to Building Regulations in England and Wales. Construction costs will increase just as margins are being squeezed further. The recently launched Design and Sustainability Standards consultation, headed by the Homes and Communities Agency, has huge potential implications on the nature and performance of any scheme benefiting from HCA funding support, and will set future government standards for sustainability, quality of accommodation (space etc) and form of construction.

So how do you plan ahead with all of this going on?

Apart from 'with great difficulty', the only answer lies in thoroughly understanding your markets through market intelligence and insight. By that I don't mean the sort of marketing research that seeks to establish customer preference, but more the type that develops market definition for input in to strategy development.

Some of the activities I recommend include:

• Keeping up to date with government policy developments. Bodies such as the Construction Products Association offer excellent information in this area.
• Talking to other companies operating in the same markets to share knowledge and experience.
• Talking to customers on a regular basis to identify factors that influence their decision-making process. Consider developing a customer forum where key customers can tell you about issues that affect their business.
• Attending conferences and seminars geared towards analysis of markets and their drivers. See details of the New Housing, New Growth seminar below.
• Subscribing to publications from bodies such as Construction Products Association, as well RIBA Insight's Monthly Briefing email updates.
• If you don't already have a central resource for market intelligence and insight, creating a forum or working group that meets regularly to discuss research that people across the business have undertaken.
• Reading – and I mean reading, rather than flicking through – trade magazines, journals and newsletters, as they often provide insightful analysis of current issues within specialist sectors.

Only by truly understanding the nature of your business and your customers' behaviour can you ensure that you'll be poised to take advantage of developing trends and opportunities.

Ian Exall is a Chartered Institute of Marketing's Construction Industry Group (CIMCIG) committee member and marketing communications manager at insulation manufacturer Rockwool.

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