European Building Suppliers Monitor (H2 2014)

Transcription

1 European Building Suppliers Monitor (H2 2014) Report Expectations about 2014 & Building Information Modeling Drs. Henri Busker, MSc Ralitsa Ruseva, MSc Christian Schrauwen November 2014 b14intpot2

2 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 2

3 1.1 Research background The times are still uncertain for the material suppliers in the construction industry: although companies operating in construction markets like Germany, Belgium and Great Britain seem to have suffered less from the economic conditions recently, major markets like France, Italy and Spain are still decreasing or stagnating. In addition, the general economic outlook for the whole Euro zone has become bleaker in the third quarter of At the same time, though, the recovery of the European construction sector is continuing; and despite the general economic uncertainties, the general European scenario is improving for 2015 and beyond. Since 2009, the European construction industry has had difficult times and this also had serious effects on the marketing budgets and activities of manufacturers of building material and products. As the future prospects are hovering between hopes for recovery and uncertainties, USP Marketing Consultancy was curious to find out how the Pan-European suppliers of building & installation materials judge their prospects in 2014, how their marketing plans are, and how they react to major construction trends and challenges like the more and more spreading BIM technology, for example. USP Marketing Consultancy is a Dutch based market research and consultancy company specialised in research for the construction, installation and DIY sector. Usually our surveys have other target groups (contractors, architects, installers, etc), whereas with this project, we wanted to focus on those companies which are usually our customers (European manufacturers, wholesalers, retailers etc.). Such companies were invited to participate in an online survey, conducted in September In total, 120 surveys were completed, including companies from the raw building, installation and finishing segment. We wanted to find out: 1. How the European building & installation material industry is currently doing; 2. What their expectations for the future are; 3. Which markets are areas of growth and where they are having tough times; 4. What happened to the marketing budget in 2013, 2014 and what can be expected for 2015; 5. How the relevance of the classical and new marketing activities is developing; 6. What the major trends are on which the manufacturers are focussing now and in the future; 7. To what extent they are prepared for creating BIM information for their products. As a result of this research, we have prepared the current summary, containing the results USP considers to be of interest to your company. Due to the sample size, detailed results split by construction sector and company size have to be interpreted indicatively. 3

4 1.2 Company characteristics Characteristics Company size Type of organisation > 2000 FTE in total 34% < 251 FTE in total 35% Manufacturer Wholesaler 5% 84% Importer 2% FTE in total 31% Retailer Other Don't know/no opinion 2% 7% 1% Sector of activity Main sector of activity manufacturers Heating, ventilation, air conditioning Raw building materials Finishing materials 28% 24% 16% Finishing materials 31% Installation 43% Electrical installation 11% Civil/infrastructure 9% Bathroom/ kitchen products Other Don't know/no opinion 6% 9% 24%. Region of activity Raw building materials 26% 52% 21% 18% Worldwide European wide Nationally (Single country ) 9% Regionally (number of countries) 4

5 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 5

6 2.1 Turnover Turnover expectations for 2014 remain stable H Asked about their actual turnover development for the first half of 2014, the majority of building suppliers (61%) reported a turnover increase. This positive share of the turnover development grew by 5% compared to the first half of 2013, mostly due to the more construction friendly temperatures in the first months of Nevertheless, the share of companies that had to face turnover decreases also grew by 18% compared to the first half of the previous year. The companies struggling most with turnover losses were the middle-sized and smaller companies with less than 2,000 FTE. The finishing materials sector again achieved the best turnover results in the first half of 2014, profiting heavily from the comparably stable European renovation sector (where most finishing materials are used). The positive turnover shares of the raw building and installation sectors shrunk in annual comparison in the same period of time, as they were hit harder than finishing by the still weak state of European new construction Strengthened by the overall solid results from the first six months of 2014, the turnover expectations for the whole year 2014 remain stable: nine out of ten manufacturers expect a positive or at least stagnating development compared to Turnover development corporate level European manufacturers of building materials/products Expectations in H1 for turnover development of H vs H Actual turnover development of H vs H Expectations in H1 for 2014 vs Expectations in H2 for 2014 vs % 6% 18% 16% 18% 20% 16% 16% Increased with more than 10% Increased with 6 to 10% Increased with up to 5% 29% 27% 36% 30% 14% 29% 23% 25% 11% 4% 1% 10% Remained the same Decreased with up to 5% Decreased with 6 to 10% Decreased with more than 10% 56% 61% 63% Don't know/no opinion 5% 9% 23% 4% 6% 8% 62% 11% 3% 3% 8% 3% 3% +51% +38% +56% +51% 6

7 2.1 Turnover Turnover developments by company size: negative expectations increasing among middle sized companies Expectations in H2 for the turnover development on corporate level 2014 vs 2013 < 251 FTE in total 14% 14% 24% 35% 8% 3% 3% +41% 52% 11% FTE in total 6% 13% 29% 29% 16% 6% +26% 48% 22% > 2000 FTE in total 3% 24% 44% 21% 3% 3% 3% +65% 71% 6% Expectations in H1 about the turnover development on corporate level 2014 vs 2013 < 251 FTE in total 14% 20% 40% 17% 3% 3% 3% +69% 74% 6% FTE in total 5% 18% 36% 23% 5% 5% 8% +49% 59% 10% > 2000 FTE in total 3% 22% 40% 24% 3% 1% 7% +60% 65% 4% Increase with more than 10% Increase with 6 to 10% Increase with up to 5% Remain the same Decrease with up to 5% Decrease with 6 to 10% Decrease with more than 10% Don't know/no answer 7

8 2.1 Turnover Turnover developments by construction sector: installation sector has the most modest expectations Expectations in H2 for the turnover development on corporate level 2014 vs 2013 Installation 12% 12% 29% 32% 6% 6% +41% 53% 12% Raw building materials 5% 18% 41% 23% 9% 5% +50% 64% 14% Finishing materials 15% 19% 38% 15% 8% 4% +60% 72% 12% Expectations in H1 about the turnover development on corporate level 2014 vs 2013 Installation 7% 20% 39% 20% 5% 9% +61% 66% 5% Raw building materials 2% 24% 32% 29% 5% 2% 2% 2% +49% 59% 10% Finishing materials 13% 13% 38% 20% 5% 13% +58% 63% 5% Increase with more than 10% Increase with 6 to 10% Increase with up to 5% Remain the same Decrease with up to 5% Decrease with 6 to 10% Decrease with more than 10% Don't know/no answer 8

9 2.2 Areas of growth Expectations for France, Russia and Germany significantly less positive United Kingdom Poland Germany Sweden Belgium Norway Denmark Netherlands Switzerland Austria Turkey Russia Finland Czech Republic Estonia Latvia Luxembourg Hungary Lithuania Slovenia Spain Portugal Greece France Italy Ukraine Countries in which growth and tough times are expected in % -19% -28% -17% -12% -14% -11% -11% -6% -7% -9% -7% -2% -2% -1% -3% -3% -4% -3% -4% -1% -1% -1% 5% 5% 6% 9% 5% 4% 5% 3% 4% 14% 9% 16% 21% 18% 17% 18% 23% 22% 14% 23% 28% 35% 35% 33% 44% Though times 49% growth H2 H1-H2 43% 1% 33% 7% 33% -22% 26% 1% 24% -6% 20% -3% 20% -4% 17% 0% 16% -5% 15% -10% 13% -5% 11% -24% 10% -3% 6% -13% 5% 0% 5% -1% 5% -5% 5% 2% 4% -1% 3% -4% -1% 4% -3% 2% -4% 6% -5% -26% -8% -9% -10% -16% The balance of negative and positive expectations for 2014 tends to the positive in 20 out of 26 countries. The most negative expectation balances are found in the crisis struck countries Ukraine, Italy, and France. Compared to the previous measurement, expectations in France, Russia and Germany have declined most significantly (by one fourth). Although still showing the third best European result, the economic activities in Germany have been on the decline in the last few months. The previously overall positive expectations in Russia were corrected in this measurement due to the negative impact of the current Western sanctions. The table on the next page shows, per company size and sector, in which countries mostly growth or tough times are expected (based on the difference between growth and tough times). 9

10 2.2 Areas of growth Most difficult markets in Southern and Eastern Europe, growth in Central and Northern Europe Countries in which growth and tough times are expected in 2014 < 251 FTE in total FTE in total > 2000 FTE in total Growth Tough times Growth Tough times Growth Tough times Germany Italy United Kingdom France United Kingdom Ukraine Poland Ukraine Belgium Romania Poland Italy United Kingdom Portugal Poland Ukraine, Portugal, Germany Belgium Spain Sweden Hungary, Greece, Serbia, Croatia, Sweden Netherlands Greece Norway, Denmark Bulgaria Denmark Moldova, Macedonia, Iceland, Greece, Cyprus, Belarus, Albania, Ireland Installation Raw building materials Finishing materials Growth Tough times Growth Tough times Growth Tough times Austria Greece United Kingdom Ukraine United Kingdom Hungary Poland Spain Poland Germany Belgium Germany Denmark Ukraine Serbia, Portugal, Sweden Ukraine, Italy, Cyprus, Belgium Iceland, Ireland Poland France Serbia, Romania, Norway, Switzerland, Norway Sweden Albania Turkey, Sweden Italy 10

11 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 11

12 3.1 Marketing budgets Larger marketing budgets expected for 2015, especially in the raw building material sector In retrospect, the marketing budget for 2013 had an average share of 2.9% of turnover. The marketing budgets in 2014, stayed close to those of 2013 if we look at all companies. The biggest increase in the marketing budgets was to be seen among the companies with less than 2000 FTE and the installation companies. The expectations are for rising the share of the marketing budget in Regardless of size or sector of activity, the manufacturers are confident for the future and expect more attention to be paid to the marketing activities in These were after all, one of the first costs which the manufacturers cut during the difficult years in the sector. Average marketing budget as a percentage of the turnover in the respective year All companies < 250 FTE in total FTE in total > 2001 FTE in total % 2.8% 2.3% 3.5% % 3.4% 3.0% 2.9% % 4.4% 3.4% 3.4% Average marketing budget as a percentage of the turnover in the respective year by main sector of activity (manufacturers only) Installation Raw building materials Finishing materials % 2.6% 3.7% % 2.7% 3.7% % 3.5% 4.3% 12

13 3.2 Division of the marketing budgets by company size and construction sector Event budget biggest among larger companies; print least important for installation, online least for finishing Division of the marketing budget 2014 per activity Total 28% 25% 20% 11% 7% 9% < 251 FTE in total 26% 23% 21% 13% 6% 11% FTE in total 27% 23% 21% 10% 7% 12% > 2000 FTE in total 30% 28% 18% 11% 9% 4% Installation 21% 25% 24% 15% 7% 8% Raw building materials 29% 25% 22% 11% 8% 5% Finishing materials 32% 21% 16% 10% 8% 13% Traditional media (printed materials etc.) Online media: website, newsletters, social media Market information/market research Professional exhibitions, fairs, events Advertisements Other 13

14 3.3 Organisation of activities at the building supply manufacturers Corporate image activities and product development mostly organised and conducted centrally The larger the company, the more often marketing materials, communication and events are being conducted locally. Traditional marketing materials and marketing communication among the raw building material companies more often organized and conducted locally. Organisation of activities Corporate image 76% 17% 4% 3% Product development 70% 14% 14% Website 57% 32% 8% Market research 50% 20% 26% 3% Business development 45% 26% 25% Online marketing 45% 21% 27% 4% Traditional marketing materials 45% 27% 26% Marketing communication 42% 29% 27% Events organisation 40% 21% 37% Organised and conducted centrally Organised centrally, conducted locally Organised and conducted locally Not applicable Don't know/no opinion 14

15 3.4. Changes in the importance of marketing activities in the last years Growing relevance of communication, product development and market research since the last survey The traditional marketing materials are losing relevance in general. For the raw building materials manufacturers organizing events becomes less relevant. Market research is particularly becoming more important for larger companies. Activities which have become more/ less important in the past 3 years Online marketing 80% +12% 15% Website 76% +1% 21% Product development 73% +15% 23% 3% Business development 70% +9% 26% Market research 47% +15% 42% 8% Corporate image 46% +8% 47% 6% Marketing communication 36% +18% 48% 13% Events organisation 20% +8% 53% 25% Traditional marketing materials 13% +6% 47% 38% More important No change Less important Not applicable Don't know/no opinion 15

16 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 16

17 4.1 Most important current and future trends Two thirds of the companies are focussing on new product development and plan to do so until 2019 The focus of the building manufacturers seem to have changed. The importance of the new product development has increased and more companies work on this. The bigger the company the more attention is paid on new product development. Topics like sustainability and total solution development currently seem to be on the agenda of fewer manufacturers. Only one year ago sustainability was number 2 trend in the focus of almost half of the manufacturers. Sustainability is an attention point for the raw building products manufacturers, while the installation sector is more focused on developing total solutions concepts. Partnership with the whole value chain is the most relevant trend for the finishing materials and product manufacturers. The importance of BIM has grown, as well as the entering of new markets. Most important trends on which the companies focus Results from September 2013 Most important trends on which the companies focus Results from September 2014 New product development Sustainability Total solutions development Partnership with complete value chain Entering new markets Entering new countries Partnership with other manufacturers Building Information Modelling No focus Other Do not know/no answer 52% 50% 47% 49% 46% 46% 35% 38% 27% 33% 22% 20% 12% 14% 7% 8% 1% 5% Current focus 2% 4% Focus next 5 years 6% New product development Total solutions development Partnership with complete value chain Entering new markets Sustainability Entering new countries Building Information Modelling Partnership with other manufacturers Other Don't know/no opinion 3% 3% 8% 8% 15% 16% 14% 16% 63% 61% 40% 37% 39% 41% 34% 32% 30% 33% 29% 31% Current focus Focus next 5 years 17

18 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 18

19 5.1 BIM introduction We as a research agency often get questions regarding BIM. Construction product manufacturers are trying to orientate themselves on the market, searching for information what do the customers need, on which geographical areas do they need to focus in the short and the long run, what is the penetration of BIM usage among different target groups etc. The BIM adoption is stimulated by regulations and increasing request from customers and principals towards architects, designers, engineers, contractors, etc. At the same time this process will not be able to develop without the involvement of the construction product manufacturers, which are an integral part of it by supplying the different market players involved in the construction chain with the needed BIM product information. There are a couple of surveys showing the penetration of BIM usage in Europe among contractors, installers and engineers. But this time we wanted to find out to what extent product manufacturers are ready for BIM, how do they look at BIM and do they have plans to implement it in the future. The next pages of the report present these results, with which we would like to help you to map where your company stands in this process. 19

20 5.2 Attitude towards providing BIM information for the own products BIM information for installation & raw building materials more often already on the market than for finishing 40% In what degree is your product portfolio ready for BIM? 30% 27% 24% 20% 20% 19% 10% 4% 7% 0% Already providing BIM information Thinking about providing BIM information in the short run (1-2 years) Thinking about providing BIM information in the long run (3-5 years) We have not started working on BIM BIM is not relevant for our products Don't know/no opinion In what degree is your product portfolio ready for BIM? < 251 FTE By company size FTE > 2000 FTE Installation By sector of activity Raw building materials Finishing materials We already provide BIM information for our products 25% 12% 27% 30% 27% 14% We are thinking about doing that in the short run (1-2 years) 13% 28% 24% 23% 27% 9% We are thinking about doing that in the long run (3-5 years) 9% 0% 3% 3% 5% 9% We have not started working on BIM 25% 40% 6% 23% 18% 27% BIM is not relevant for our products 16% 0% 6% 3% 5% 9% Don't know/no opinion 13% 20% 33% 17% 18% 32% 20

21 5.3 Countries with advanced BIM activities Manufacturers concentrate their BIM activities on countries where BIM usage is already most advanced The adoption of BIM in the different European countries goes at a different pace. This is something to be taken into account when deciding in which countries the BIM information should be available already, and in which countries this is not yet necessary. The manufacturers who already provide BIM information for their products have also had a selective approach. The top 6 countries most often mentioned are presented on the map. 21

22 < 251 FTE FTE > 2000 FTE Installation Raw building materials Finishing materials Already providing BIM information Thinking of starting with BIM in 1-2 years Thinking of starting with BIM in 3-5 years Not started with BIM BIM not relevant 5.4 Attitude towards competitive advantage of providers of BIM information Almost one out of two manufacturers think providing BIM info is a competitive advantage The building product manufacturers who already provide BIM product information have a big competitive advantage Don't know/no opinion 25% Completely/ rather agree 45% The competitive advantage of providing BIM information is confirmed by the companies who already do that. About 30% of the companies which have not started working on BIM or see BIM as not relevant believe that BIM brings competitive advantage. Completely/ rather disagree 11% Neither agree, nor disagree 19% The building product manufacturers who already provide BIM product information have a big competitive advantage By company size By sector of activity Degree of being BIM ready Completely/ rather agree 38% 46% 52% 55% 45% 24% 80% 58% 0% 27% 29% Neither agree, nor disagree 22% 21% 13% 17% 30% 19% 5% 32% 75% 27% 14% Completely/ rather disagree 16% 8% 10% 10% 15% 14% 15% 11% 25% 14% 14% Don't know/no opinion 25% 25% 26% 17% 10% 43% 0% 0% 0% 32% 43% 22

23 < 251 FTE FTE > 2000 FTE Installation Raw building materials Finishing materials Already providing BIM information Thinking of starting with BIM in 1-2 years Thinking of starting with BIM in 3-5 years Not started with BIM BIM not relevant 5.5 Attitude towards necessity of significant investments for providing BIM info Most manufacturers agree solid BIM product information cannot be offered without major investments Completely/ rather disagree 7% Building product manufacturers need to make a significant investment in order to make BIM information available for their products Majority of the manufacturers who Don't know/no opinion 25% Neither agree, nor disagree 14% Building product manufacturers need to make a significant investment in order to make BIM information available for their products By company size By sector of activity Degree of being BIM ready < 251 FTE in total FTE in total Completely/ rather agree 54% > 2000 FTE in total Installation already provide BIM information or are planning to do so that it requires serious investments. The ones who have not started even thinking about BIM are least informed about the financial investments BIM requires. Raw building materials Finishing materials completely/rather agree 47% 58% 58% 59% 70% 29% Neither agree, nor disagree 13% 8% 16% 17% 20% 10% Completely/ rather/completely agree disagree 47% 16% 58% 58% 4% 59% 70% 3% 29% 75% 7% 68% 5% 75% 36% 10% 57% Neither Don't agree, know/no nor disagree opinion 13% 25% 8% 16% 29% 17% 20% 23% 10% 10% 17% 21% 5% 0% 18% 52% 14% Completely/ rather disagree 16% 4% 3% 7% 5% 10% 15% 5% 25% 5% 0% Don't know/no opinion 25% 29% 23% 17% 5% 52% 0% 5% 0% 41% 29% 23

24 < 251 FTE FTE > 2000 FTE Installation Raw building materials Finishing materials Already providing BIM information Thinking of starting with BIM in 1-2 years Thinking of starting with BIM in 3-5 years Not started with BIM BIM not relevant 5.6 Self-evaluation regarding customer BIM needs 25% believe they understand their clients needs regarding BIM, quite as many are not so sure We know very well what our clients need with regards to BIM Don't know/no opinion 28% Completely/ rather agree 25% Given the fact that BIM requires serious investment, understanding the clients need in this respect is essential. This can save extra costs which can be related to adjusting the BIM information, or preparing BIM information for products where BIM is not really required. Completely/ rather disagree 25% Neither agree, nor disagree 22% Only half of the manufacturers already offering BIM information confirm that they know their clients needs in this respect. This means that there are also manufacturers who have gone with the BIM trend without being sure what is relevant to their customers. We know very well what our clients need with regards to BIM By company size By sector of activity Degree of being BIM ready Completely/ rather agree 28% 13% 32% 31% 35% 14% 50% 32% 25% 18% 14% Neither agree, nor disagree 13% 25% 29% 34% 20% 19% 35% 26% 25% 14% 29% Completely/ rather disagree 31% 38% 10% 17% 35% 14% 15% 32% 50% 32% 14% Don't know/no opinion 28% 25% 29% 17% 10% 52% 0% 11% 0% 36% 43% 24

25 < 251 FTE FTE > 2000 FTE Installation Raw building materials Finishing materials Already providing BIM information Thinking of starting with BIM in 1-2 years Thinking of starting with BIM in 3-5 years Not started with BIM BIM not relevant 5.7 Experience with customer requests for BIM product information A similar share of manufacturers confirms/cannot confirm to receive more requests for BIM product info We receive increasingly more request for BIM product information by our clients Don't know/no opinion 31% Completely/ rather agree 27% The requests for BIM product information are mainly directed at the installation and raw building product manufacturers. This corresponds with the higher involvement of those two sectors with BIM, and the lower readiness for BIM among the finishing products industry. Completely/ rather disagree 29% Neither agree, nor disagree 13% We receive increasingly more request for BIM product information by our clients By company size By sector of activity Degree of being BIM ready Completely/ rather agree 28% 17% 35% 38% 35% 10% 70% 32% 0% 9% 0% Neither agree, nor disagree 9% 13% 13% 17% 10% 19% 15% 16% 50% 9% 14% Completely/ rather disagree 34% 38% 19% 24% 40% 24% 10% 42% 50% 50% 43% Don't know/no opinion 28% 33% 32% 21% 15% 48% 5% 11% 0% 32% 43% 25

26 < 251 FTE FTE > 2000 FTE Installation Raw building materials Finishing materials Already providing BIM information Thinking of starting with BIM in 1-2 years Thinking of starting with BIM in 3-5 years Not started with BIM BIM not relevant 5.8 Attitude towards BIM product info as door opener for big/important projects Every second manufacturer agrees that BIM product information is a must in order to be considered in big projects Completely/ rather disagree 7% In order to be considered in big/ important projects, the building product manufacturers should be able to provide BIM product information Don't know/no opinion 26% Neither agree, nor disagree 16% Completely/ rather agree 51% Currently BIM is being implemented and required by the principals for the big projects, where much costs can be saved during the whole design, construction and maintenance process. Majority of the companies already providing BIM information to the market and those who are thinking of doing that in the coming years are convinced that BIM can be a door opener for big & important projects. BIM offers also opportunities for the manufacturers to create a preferred supplier position. In order to be considered in big/ important projects, the building product manufacturers should be able to provide BIM product information By company size By sector of activity Degree of being BIM ready Completely/ rather agree 56% 38% 58% 69% 55% 24% 90% 63% 75% 23% 43% Neither agree, nor disagree 13% 25% 6% 10% 20% 29% 10% 26% 25% 23% 0% Completely/ rather disagree 3% 8% 13% 3% 20% 5% 0% 11% 0% 14% 29% Don't know/no opinion 28% 29% 23% 17% 5% 43% 0% 0% 0% 41% 29% 26

27 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 27

28 6. Conclusions The European construction sector has been suffering from the crisis since Despite the difficult general economic situation, the outlook for the construction sector is slightly improving. In terms of turnover, we see that the first half of 2014 results and the total 2014 expectations of the European manufacturers of building supply materials show signs of stabilization. The finishing sector in particular seems still to profit from its core activity in the comparably robust maintenance and renovation market. In general, the smaller and medium sized manufacturers (with less than 2,000 employees) are more often having tough times than the bigger companies, the latter being more often able to compensate their losses in crisis shaken markets via their activities in the large construction markets doing well at present, like the United Kingdom or Germany, for example. But we also see that the conditions for building suppliers in important core markets like Germany, France and Russia are on the decline in comparison to the previous survey. Due to the overall good conditions in the first six months of 2014, the marketing budgets for 2014 have remained modest, but stable in comparison to the previous year (the average for all companies) and are expected to rise in 2015 to a level of 3.8% of the turnover. Half of the marketing budget is spent on traditional print material (brochures, leaflets etc.) and trade fairs, but the trend towards online media is increasing. Already 25% of the budget is spent on websites, newsletters or social media activities. In the last years, activities like online marketing and website maintenance have also become more important for 4 out of 5 manufacturers: the new media have become an indispensable marketing tool in times of crisis, due to their cost efficiency, speed and increasing relevance for both professional and end consumer target groups. At the same time, other marketing tools have also gained in relevance compared to the last survey (like marketing communication, market research and product development). Due to the technical changes and challenges ahead in times of more effective construction processes, BIM, 3-D printing etc., product development is gaining more and more focus and is a major trend for 2 out of 3 manufacturers. By focussing on trends like total solutions and partnerships with the complete value chain, the manufacturers are preparing for the future. New markets and new countries are especially in the focus of smaller and middle-sized companies. Those companies have learned from the former crisis years that a one-sided dependence on a small group of core countries or segments can become a problem. By broadening their sales market, they hope to become more crisis-resistant in a still uncertain economic climate. Although aware of the fact that BIM based construction will change the whole structure of the industry fundamentally in the future, only 20% of the manufacturers are BIM ready. They are concentrating their BIM activities on the countries with the best BIM penetration and/or perspective at present, like Sweden, the UK, the Benelux states, France and Switzerland. As the topic is still new, a lot of insecurities can be noted in the industry: the manufacturers are divided on core issues like the customer needs and requests. But as those manufacturers already offering BIM product information are rapidly gaining competitive advantages, decisions on investments in BIM have to be made now. Suppliers ignoring the subject any longer might be easily outpaced by their competitors in the coming years. 28

29 Table of contents 1 Research background and company characteristics 2 2 Turnover and areas of growth 5 3 Marketing 11 4 Trends 16 5 Building Information Modeling 18 6 Conclusions 27 7 USP Corporate presentation/cost indication for internat. research 29 29

30 USP Marketing Consultancy Corporate presentation

31 USP Marketing Consultancy: Specialist in construction, DIY, finishing & installation Market specialist Network Tailormade services Promise is a promise Customer focus Full service Result driven Financially healthy Market specialist Full service Focus International experience Market specialist in the Call centre with 50 seats. Consultancy based on solid 25% of our turnover comes construction, installation & energy, DIY, finishing, real estate and housing market since experienced employees. ISO 9001 & ESOMAR. Online B2C & B2B panels. Group discussion facilities. Modern ICT facilities. Extensive international network of fieldwork partners. & substantiated information from a clear market specialisation in the construction, installation & energy, DIY, finishing, real estate and housing market. from international project. Recent research projects in France, the UK, Belgium, Germany, Spain, Italy, Scandinavia, Eastern Europe and China. USP is founder of: 31

32 USP Marketing Consultancy: Customers of USP Wet finish Dry finish DIY Installation & Energy Construction & Infra Insulation & chemicals General 32

33 USP Marketing Consultancy: International experience 33

34 USP Marketing Consultancy: Types of research & typical assignments Market developments Concept research Brand / corporate image Push pull marketing Expansion possibilities Advertising effectiveness Employee satisfaction Brand awareness Customer satisfaction MARKETING MANAGEMENT PROCESS Market Analysis Marketing Strategy Marketing Tactics (Mix) Marketing Evaluation Market size determination Market exploration Trends & developments Competition research Target group analysis Segmentation research Positioning studies Brand research Concept research Distribution research Media reach research Price research Image study Satisfaction study Campaign evaluations Feasibility study 34

35 Ralitsa Ruseva MSc., International project manager Christian Schrauwen MSc., Research analyst August i14eimq2 USP Marketing Consultancy: Reference projects construction & installation Brand research in 8 European countries Quantitative (Phone) Wavin 2014 Worldwide Construction trends and their effect on the Construction Sector Qualitative (desk research & internal survey) Holcim 2013 International BIM usage & requirements (4 European countries) Quantitative (Phone) ROCKWOOL 2014 Decision Making Unit research in 5 European countries Qualitative & Quantitative Vaillant Group 2014 European construction trends 2020 in UK, Germany, Belgium, France, Netherlands Qualitative (desk research & in-depth interviews) CRH 2013 Theme: Love Brands of Installers European Mechanical Installation Monitor Report Q European Mechanical Installation Monitor in 6 European countries Quantitative (Phone) Multiclient 2014 (every quarter) Market exploration survey in France Quantitative (Phone) Kingspan Insulation 2013 European Architectural Barometer in 8 European countries Quantitative (Phone) Arch-Vision (every quarter) Corporate Presentation USP Marketing Consultancy - on behalf of 'Client' 35

36 USP Marketing Consultancy: Reference projects DIY & living Market exploration New product Asia, Europe & USA Quantitative (online) Wagner 2014 Customer Journey Study Fixing products Germany, Italy, Netherlands Qualitative & Quantitative Fischer 2014 Customer satisfaction The Netherlands Quantitative (Face-to-face) Intergamma / KARWEI 2014 Brand image Kitchen appliances The Netherlands Quantitative (online) ATAG Nederland 2013 Brand research France, Germany, The Netherlands, Poland and UK. Quantitative (online) PPG 2014 Effect measurement loyalty program Italy & the UK Quantitative (Phone) Ideal Standard 2013 Market exploration Garden power tools Europe & USA Qualitative & Quantitative MTD 2014 Corporate Presentation USP Marketing Consultancy - on behalf of 'Client' European Home Improvement Monitor 13 European countries Quantitative (online) Multi client (continuous)

37 USP Marketing Consultancy: Reference projects dry & wet finishing Brand and Marketing Strategy Research in 7 countries Quantitative (Phone) Brand Image Survey in 10 countries (world wide) Quantitative (Phone) CRH Shutters & Awnings 2014 Dorma 2014 Paint monitor in Germany, the Netherlands, Denmark and Belgium Quantitative (Phone) PPG Coatings Market volume research in 16 countries Qualitative Daylight Solutions 2014 Trends and developments in the dry and wet finishing market Qualitative & quantitative (Phone & online) Bedrijfschap Afbouw 2014 Product introduction research Quantitative (Phone & online) VELUX 2014 Market size research professional project market Quantitative (Phone) Net Promoter Score research Quantitative (online) Forbo Corporate Presentation USP Marketing Consultancy - on behalf of 'Client' Jongeneel

38 USP Marketing Consultancy: Testimonials We had a good internal discussion due to good market data. The report was an excellent piece of work en delivered under high time pressure: a good result. We even decided to organise a separate workshop (together with the Board) to get further insights and determine our strategy for the coming years. Internally it was expected we would get some sort of customer satisfaction research. But in retrospect we were positively surprised about the strategic quality of the project delivered by USP. USP has both market knowledge and knowledge of how to conduct solid research. Furthermore they are internationally oriented which is a clear advantage to our organisation. The results of the customer satisfaction and position research USP conducted for us, created a solid base for us to better monitor and serve our target groups. Meeting the demand from the market is essential to us!" "USP gives a lot of attention for aftercare. Once the report is delivered they always give us a call to ask if everything is clear. If there are further questions they can immediately answer them or they will look into them. During the project they regularly keep us informed about the progress." 38

39 USP Marketing Consultancy: International strengths Arch- Vision 1 in 4 projects international European Home Improvement Monitor Bau Info Consult Germany Experience in each continent European Architectural Barometer Network of fieldwork partners 39

40 USP Marketing Consultancy: The European Architectural Barometer, Arch-Vision Information about the latest trends and developments in the European construction market are provided by the European Architectural Barometer, an international market research project conducted among 1,600 architects in Europe on a yearly base. This study is conducted in Germany, France, Italy, Spain, the United Kingdom, the Netherlands, Belgium and Poland by Arch-Vision four times a year. Next to the indicators that help to forecast European building volumes, a specific topic is highlighted each quarter. The topic in Q was Architectural Design & Technology Trends. Architects can not only be used as a reliable source for future building volumes information, their role is very important as they have a big influence on how we build and which materials will be used. Arch-Vision, an associated company of USP Marketing Consultancy, has been active since the beginning of At this moment Arch-Vision is fully occupied with the development and production of the European Architectural Barometer. On the medium run, Arch-Vision will develop to a complete European Architectural Platform, bringing together building material suppliers, publishers, software developers and architects. 40

41 USP Marketing Consultancy: The European Home Improvement Monitor The European residential new build market currently has limited growth potential. Due to the economic recession, the new build volumes have dropped dramatically. The renovation and refurbishment sector on the other hand has become relatively important and it is expected its importance will further grow. There is a lot of information available about the DIY and renovation market in the professional segment. However, there s no source that gives insight in the size of the total home improvement market, including both jobs done by consumers and professionals, and the main trends in this market. The European Home Improvement Monitor is the first research that monitors the market size and main trends in the European home improvement market on a continuous basis. Each month, 1,000 successful interviews are conducted in Belgium, Germany, France, Italy, Poland, Spain, the Netherlands and the United Kingdom. In addition, the regions Scandinavia and Austria-Switzerland are included in the research. This means 12,000 interviews are conducted among European consumers on a yearly basis. The results from this research are reported in on a quarterly basis and show the development of the market in terms of purchase volume and purchase channels. Furthermore, each quarter indepth insight is provided on topics which are actual in the market. 41

42 Cost Indication for International Research in 10 European Countries Proposal For Building & Installation Materials Manufacturers with a pan-european marketing strategy 42

43 Why to conduct standardized pan European market research? The European construction and installation market is suffering from the worldwide economic crisis. Volumes are low, and prices and margins are under pressure. Most of the companies are careful with resources and marketing budgets, like many costs, have been diminished every year since On the other side, it is clear that the market is changing, due to the growing need for sustainability, the energy performance requirements becoming stricter, more demanding customers, the need for more efficient and faster building processes, new innovations, etc. This increases the need for solid market information to determine the marketing strategy (to define R&D strategy, to evaluate the brand position (awareness, image and satisfaction)). Most organisations with activities in different European countries, had until recently the strategy of organizing marketing and market research by the national subsidiaries. But more and more marketing is centralized and now all kind of reports are provided by the different subsidiaries which cover most of the time the same topics, but are not really comparable due to different research approaches, different research target groups, different questions, etc. Arch-Vision is a part of the activities of USP Marketing Consultancy, which in the last couple of years shows significant growth in the international research field. Many of our clients operate not only on the Dutch market, but European wide and even worldwide. What we observe among our clients is that all of them highly appreciate to have data about their markets, customers, competitors, etc. which is comparable between the countries. And this can be only ensured if one standardised approach is used for conducting surveys in all countries: one questionnaire, the same way of interviewing, the same approach for identification of the right respondents. The data from such research makes it very easy for our clients to draw their strategy on at least two levels: general corporate and specific country level. And organising market researches on group level saves at least 30% of the cost compared to the situation whereby every country is organising the research herself. To give an idea about costs of international market research in 10 European countries, USP has prepared an indicative cost estimation for three different types of surveys. The three surveys are only a small part of the capacity and expertise of USP. Price indication pan European market 43

44 Survey characteristics 3 project examples Consumer survey (B2C) Customer Satisfaction Survey (B2B) Brand Image Survey (B2B) Target group: Consumers of a certain product group Target groups: Customers of your company (i.e. Distributors, Installers, Architects or Contractors) Target groups: The whole population of your current and potential customers Number of interviews: N= 500 (per country) Number of interviews: 2 customer types: 100 interviews per customer type N=200 (per country) Number of Interviews: 2 customer types: 100 interviews per customer type N=200 (per country) Survey method: Online Length of the interview: 10 min. Survey method: Telephone Length of the interview: 12 min. Survey method: Telephone Length of the interview: 12 min. Territorial coverage: 10 Countries UK Germany France The Netherlands Spain Italy Poland Turkey Russia Ukraine Price indication pan European market 44

45 Research process As a standard, the surveys USP conduct go though at least three phases (see the figure below). For some more complicated surveys the research process includes more phases (i.e. extensive qualitative survey via in-depth interviews, group discussions or desk research, report of the results from the qualitative survey, etc.) Internal phase Quantitative research Analyse & Report Input: Study existing information about the company and competitors and internal discussions at the client (mostly organised with local sales and marketing teams via video conferencing). Output: Knowledge about the company, market, brands, competitors, brand values in order to prepare relevant questionnaire. Input: Interviews (online or by telephone) among the target group of respondents by local call centre working on USP network (computer assisted interviews). Output: Solid data regarding the survey topic. Input: USP will analyze data from the interviews using SPSS and report research in PowerPoint. Output: Insight in the survey topic and advice on what actions the client should undertake. Price indication pan European market 45

46 Costs and planning: Consumer Online Survey in 10 countries Below, the costs for the Consumer survey in 10 countries are presented, assuming online interviews and 500 successful interviews per country. Length of the interview: 10 minutes. The costs and sequence of the research are presented. USP has a day rate for project managers (PM) of 1,100 and for researchers (R) of 800 (ex VAT). The final planning will be agreed upon after the final agreement has been given. All assignments carried out by USP, are done according to our general terms, which can be found on our website ( A research like this can be conducted within 10 weeks Costs and planning Online consumer survey: N=500 per country Days PM Days R Costs When Internal phase (interviews with the clients) ,800 Week 1 Preparation of the questionnaire in English 2.0 2,200 Week 2 Discussion of the questionnaire and finalisation Week 3 Programming of the questionnaire 2.0 1,600 Week 4 Translation of the questionnaire (9 languages) 4,500 Week 4 Online interviews (5000 * average price of 5.50) 27,500 Week 5-6 Management online fieldwork Week 5-6 Analysis results (SPSS) 8.0 6,400 Week 7-8 Reporting in English (total report 10 countries) ,100 Week 9-10 Total costs (ex. VAT and other travel expenses) 55,450 Price indication pan European market 46

47 Costs and planning: Customer Satisfaction Survey in 10 countries via phone with professional target groups Below, the costs for the Customer Satisfaction Survey in 10 countries are presented assuming telephone interviews, two target groups of customers and 100 successful interviews per customer type. Total number of 200 interviews per country. Length of the interview: 12 minutes. The interview price is based on the assumption that the principal delivers a data base with customers. If that s not possible, the interview price will be 25 on average. The internal phase of the projects includes interviews with representatives from the clients for understanding the structure of the organisation, its customer approach, etc. The costs and sequence of the research are presented. USP has a day rate for project managers (PM) of 1,100 and for researchers (R) of 800 (ex VAT). The final planning will be agreed upon after the final agreement has been given. A research like this can be conducted within 12 weeks. Costs and planning Customer satisfaction survey: 2 target groups. N=200 per country Days PM Days R Costs When Internal phase (interviews with the client) ,800 Week 1-2 Preparation of the questionnaire in English 2.0 2,200 Week 1-2 Discussion of the questionnaire and finalisation Week 3 Programming of the questionnaire 2.0 1,600 Week 3-4 Translation of the questionnaire (9 languages) 4,500 Week 5 Telephone interviews (2000 * average price of 18.00) 36,000 Week 6-8 Management telephone fieldwork 2.5 2,000 Week 6-8 Analysis results (SPSS) 8.0 6,400 Week 9-10 Reporting in English (total report 10 countries) ,100 Week Total costs (ex. VAT and other travel expenses) 65,150 Price indication pan European market 47

48 Costs and planning: Brand Image Survey in 10 countries via phone with professional target groups Below, the costs for the Brand Image Survey in 10 countries are presented assuming telephone interviews, two target groups of customers and 100 interviews per group. Total 200 successful interviews per country. Length of the interview: 12 minutes. The costs and sequence of the research are presented. USP has a day rate for project managers (PM) of 1,100 and for researchers (R) of 800 (ex VAT). The final planning will be agreed upon after the final agreement has been given. A research like this can be conducted within 12 weeks. Costs and planning Brand image survey: 2 target groups. N=200 per country Days PM Days R Costs When Internal phase (interviews with the client) ,800 Week 1-2 Preparation of the questionnaire in English 2.0 2,200 Week 1-2 Discussion of the questionnaire and finalisation Week 3 Programming of the questionnaire 2.0 1,600 Week 3-4 Translation of the questionnaire (9 languages) 4,500 Week 5 Telephone interviews (2000 * average price of 25.00) 50,000 Week 6-8 Management telephone fieldwork 2.5 2,000 Week 6-8 Analysis results (SPSS) 8.0 6,400 Week 9-10 Reporting in English (total report 10 countries) ,100 Week Total costs (ex. VAT and other travel expenses) 77,250 Price indication pan European market 48

49 20 November 2014, USP Marketing Consultancy B.V. The information in this publication is strictly confidential and all relevant copyrights, database rights and other (intellectual) property rights are explicitly reserved. No part of this publication may be reproduced and/or published without the prior written permission of USP Marketing Consultancy B.V. Marketing activities of the construction sector- b14intpot1 49