Construction

When home prices skyrocketed in 2020, construction companies jumped into residential building, while nonresidential building stalled out due to lack of demand. Now the tables have turned. Residential builders are proceeding more cautiously, while nonresidential builders are expecting a push in 2023, in part due to a pair of federal laws that will encourage spending on infrastructure and U.S. microprocessor manufacturing facilities. No matter which area of construction, fragile supply chains, exorbitant material costs and extended lead times have caused notable difficulties. Still, the biggest issue continues to be labor: both finding skilled workers, and avoiding burnout for the workers who are on site. “Pre-pandemic labor was already a growing concern,” noted David DeSilva, head of construction for The Hartford in a fall 2022 report. “There were more workers leaving the field than entering it. The pandemic really accelerated this shift of workers retiring or changing careers.” Despite those issues, ResearchandMarkets. com is forecasting compound annual growth of 5.5% through 2026 – pointing to bankable projects and realistic possibilities to spend on marketing and engagement. – C.J. Mittic

4 Distributor Tips:

1.  Make employees feel appreciated. Joyce has heard stories of workers being stolen for double pay or candidates shopping for the highest bidder. “There’s no loyalty in that, and you’re not going to be able to build your brand or your company based on that. Employees want to be recognized and appreciated,” she says. Company webstores are a great option, with the choice of a top item when the team reaches a goal.

2. Prioritize function, quality and looks. The products that construction workers want are the ones “they’ll use in their everyday life outside of work, and will be proud to show it because it has their company logo on it,” Joyce notes. High-quality cooler bags, top-of-the line drinkware and durable apparel are all winners.

3. Get involved in the community. While Joyce is big on referrals, proactive networking is crucial. “Show up to every chamber breakfast and ribbon cuttings,” she says. “The more they see your face, the more they’ll remember you, and then you build that relationship with them.”

4. Find the right point person. Once the connection is made, look to HR and managers as your primary buyers. “The hiring manager is a key person, because you can come to them with a solution like a new hire kit. Who doesn’t love starting a new position and feeling welcome.” In the instances when Joyce is walking into a business for the first time, she’s sure to have something to give the gatekeeper to win them over. “They’re never going to let you pass if they don’t feel comfortable with you.

Works Cited: Construction