Budgets on the rise
Author: Ross Sturley CIMCIG
Marketing budgets are set to grow this year in 62% of companies while 45% are expecting to increase their headcount. Meanwhile “recruitment, training & retention of staff” has become top of the strategic agenda.
The May 2015 ‘State of the Industry’ construction barometer, completed by senior executives from across the construction supply chain, was published by construction market research specialists Leading Edge, in association with CIMCIG and Construction News.
The outlook remains positive for marketing budgets over the next 12 months with an average predicted increase in marketing spend of 2.5%. Meanwhile only 8% of companies are expecting to see any decrease in their marketing budget. Mel Budd, Director at Leading Edge commented, “the findings show that a majority of companies are planning to increase marketing spend and fully exploit the growing construction market, many are also looking to increase the resources within their marketing department through additional recruitment”.
In terms of sales performance, 85% of companies improved their sales over the past 6 months, compared with the same period in 2013. 59% of companies are positive about their sales performance over the next 6 months, expecting sales to continue to grow.
Mel commented, “these results are consistent with many other surveys in recent months but in contrast to ONS data released earlier this year which pointed to declining construction output.” When asked what the key issues were for companies over the next 12 months, “reviewing company’s strategy”, and “ability to source building materials and equipment” were the two strategic areas with the highest growth rate compared to 12 months ago. Mel added that “despite the market growth, 43% of companies believe a lack of key staff is likely to restrict sales growth while 40% of companies are finding that aggressive low prices from competitors would impact on their chances of winning work over the next 6 months.”