Global Construction Supplier Industry Outlook Survey 2011–2012: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies

Report Summary

A comparison of results from 2011 with a survey carried out by ICD Research in 2009, ‘Global Construction and Architecture Supplier Industry Outlook to 2010: Marketing and Sales Strategies and the Impact of Recession and Recovery’, reveals higher levels of optimism in the construction industry in 2011, as 53% of respondents expect revenue growth in this year, compared to 34% in 2009.  From 2009–2011 respondents’ expected changes in business structure have altered considerably. In the second quarter of 2011, the top three expected changes are to ‘expand in current market,’ improving operational efficiency’ and ‘new products and services.’ In the same quarter in 2009 these were to ‘enter specific sectors and markets,’ ‘increase in business’ and ‘government support’. In 2011 companies therefore emphasize the importance of launching new products and services and increasing operational efficiency.”

ICD Research’s report, “Global Construction Supplier Industry Outlook Survey 2011–12: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies” is the result of an extensive survey drawn from ICD Research’s exclusive panel of leading construction industry companies.

As most countries emerge from the effects of recession, this report provides the reader with a definitive analysis of the industry outlook and explores how opportunities and demand are set to change in 2011–2012. Furthermore, this report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type and sizes, in addition to examining the following:

• Revenue growth expectations
• Market-specific growth opportunities
• Mergers and acquisitions
• Leading business concerns
• Marketing expenditure trends
• Key factors for marketing agency selection

Reasons to buy:

• Increase your knowledge of the construction industry on a global level allowing you to make strategic business decisions
• Benchmark your sales and marketing spend with industry peers to effectively determine strategy
• Identify the specific marketing approaches your competitors are using to win business
• Better promote your business by aligning your capabilities and business practices with your customer’s changing needs
• Secure stronger customer relationships by understanding the leading business concerns and changing strategies of buyers and suppliers
• Predict how the industry will grow, consolidate and where it will stagnate
• Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers in the industry

Table Of Contents

1 Executive Summary

2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Summary Methodology
2.4 Profile of survey respondents
2.4.1 Profile of buyer respondents
2.4.2 Profile of supplier respondents

3 Industry Dynamics
3.1 Revenue growth expectations
3.1.1 Revenue growth expectations by company type
3.1.2 Revenue growth expectations by region
3.1.3 Revenue growth expectations by turnover
3.1.4 Revenue growth expectations by senior level respondents
3.2 Future developments in business structure
3.2.1 Future developments by buyers
3.2.2 Future developments by suppliers
3.3 M&A activity predictions
3.3.1 M&A activity predictions by buyers
3.3.2 M&A activity predictions by suppliers
3.3.3 M&A activity predictions by region
3.3.4 M&A activity predictions by company turnover

4 Construction Market Growth Outlook
4.1 Demand in emerging markets
4.1.1 Demand in emerging markets by buyers
4.1.2 Demand in emerging markets by suppliers
4.1.3 Demand in emerging markets by region
4.1.4 Demand in emerging markets by company turnover
4.2 Growth expectations in developed countries
4.2.1 Growth expectations in developed countries by buyers
4.2.2 Growth expectations in developed countries by suppliers
4.2.3 Growth expectations in developed countries by region
4.2.4 Growth expectations in developed countries by company turnover

5 Threats And Opportunities For The Construction Industry
5.1 Leading business concerns for 2011–2012
5.1.1 Leading business concerns for the period by company type
5.1.2 Leading business concerns for 2011–2012 by region
5.1.3 Leading business concerns by company turnover
5.2 Key supplier actions to maintain and win buyer business
5.2.1 Actions to maintain and secure buyer business by region
5.2.2 Actions to maintain and secure buyer business by turnover
5.2.3 Actions to maintain and secure buyer business by procurement budget
5.2.4 Actions to maintain and secure buyer business by purchasing decision authority

6 Construction Industry Supplier Marketing Spend Activity
6.1 Planned change in marketing expenditure levels
6.1.1 Planned change in marketing expenditure levels by suppliers
6.1.2 Planned change in marketing expenditure levels by region
6.1.3 Planned change in marketing expenditure levels by company turnover
6.1.4 Planned change in marketing expenditure levels by revenue growth expectations (%), 2011
6.1.5 Net change in planned marketing expenditure, all industries
6.2 Future investment by media channel
6.2.1 Future investment on media channels by suppliers
6.2.2 Future investment by media channel by region
6.2.3 Planned change in marketing spend by company turnover
6.3 Suppliers' future investment in marketing and sales technology
6.3.1 Planned investment in marketing and sales technologies by suppliers
6.3.2 Planned investment in marketing and sales technologies by region
6.3.3 Planned investment in marketing and sales technologies by company turnover
6.4 Annual marketing budgets: construction industry suppliers
6.4.1 Annual marketing budgets by suppliers
6.4.2 Annual marketing budgets by region
6.4.3 Annual marketing budgets by company turnover

7 Marketing and Sales Behaviors and Strategies in 2011–2012
7.1 Key marketing aims of suppliers for 2011–2012
7.1.1 Key marketing aims of suppliers
7.1.2 Key marketing aims by region
7.1.3 Key marketing aims by turnover
7.1.4 Key marketing aims by revenue growth expectations
7.2 Essential amendments to marketing activities in 2011–2012
7.2.1 Amendments to marketing activities by supplier
7.2.2 Amendments to marketing activities by region
7.2.3 Amendments to marketing activities by company turnover
7.3 Use of new media for business prospects
7.3.1 Use of new media by suppliers
7.3.2 Use of new media by region
7.3.3 Use of new media by company turnover
7.4 Critical success factors for choosing a marketing agency
7.4.1 Critical success factors: supplier comparison
7.4.2 Critical success factors: by region
7.4.3 Critical success factors: by company turnover

8 Appendix
8.1 Methodology
8.2 Contact us
8.3 About ICD Research
8.4 Disclaimer

List of Tables

Table 1: Total Survey Respondents by Company Type (Number of Respondents), 2011 13
Table 2: Buyer Respondents by Job Role (%), 2011 13
Table 3: Buyer Respondents by Global Company Turnover (%), 2011 14
Table 4: Buyer Respondents by Total Number of Employees (%), 2011 14
Table 5: Buyer Respondents by Region (%), 2011 14
Table 6: Supplier Respondents by Job Role (%), 2011 15
Table 7: Supplier Respondents by Global Company Turnover (%), 2011 15
Table 8: Supplier Respondents by Total Number of Employees in Organization (%), 2011 16
Table 9: Supplier Respondents by Region (%), 2011 16
Table 10: Revenue Growth Optimism (%), 2009–2011 18
Table 11: Revenue Growth Optimism by Buyers (%), 2009–2011 20
Table 12: Revenue Growth Optimism by Suppliers (%), 2009•2011 20
Table 13: Revenue Growth Optimism by Region (%), 2009–2011 22
Table 14: Revenue Growth Optimism by Turnover (%), 2011 24
Table 14: Revenue Growth Optimism by Senior Level Respondents (%), 2011 25
Table 16: Key Expected Changes In Business Structure in The Buyers Industry (%), 2011 27
Table 17: Key Expected Changes in Business Structure in the Equipment And Materials Suppliers Industry (%), 2011 29
Table 18: Key Expected Changes in Business Structure in the Other Construction Suppliers Industry (%), 2011 30
Table 19: Merger and Acquisition: Construction Contractors, Sponsors Or Developer Industry, 2009–2011 32
Table 20: Merger and Acquisition Activity Expectations, Construction Equipment And Materials Suppliers Industry, 2009–2011 34
Table 21: Merger and Acquisition Activity Expectations, Other Construction Industry Suppliers Industry, 2009–2011 35
Table 22: Merger and Acquisition Activity Expectations by Region, 2011 37
Table 23: Merger and Acquisition Activity Expectations by Company Turnover, 2011 39
Table 24: Demand in Emerging Markets by Construction Contractors and Developers (%), 2011 43
Table 25: Demand in Emerging Markets by Equipment And Materials Suppliers (%), 2011 45
Table 26: Demand in Emerging Markets by Other Construction Suppliers (%), 2011 47
Table 27: Growth Expectations in Developed Countries by Construction Contractors and Developers (%), 2011 52
Table 28: Growth Expectations in Developed Countries by Equipment And Materials Suppliers (%), 2011 54
Table 29: Growth Expectations in Developed Countries by Other Construction Suppliers (%), 2011 56
Table 30: Leading Business Concerns (%), 2011–12 63
Table 31: Leading Business Concerns by Company Type (%), 2011–12 65
Table 32: Leading Business Concerns by Region (%), 2011–12 67
Table 33: Leading Business Concerns by Company Turnover (%), 2011–12 69
Table 34: Actions to Maintain and Secure Buyer Business • Buyer Responses (%), 2011 71
Table 35: Actions to Maintain and Secure Buyer Business • Buyer vs. Supplier Responses (%), 2011 72
Table 36: Actions to Maintain and Secure Buyer Business by Region (%), 2011 74
Table 37: Actions to Maintain and Secure Buyer Business by Company Turnover (%), 2011 75
Table 38: Actions to Maintain and Secure Buyer Business by Procurement Budget (%), 2011 77
Table 39: Annual Procurement Budgets of Construction Buyers in US$ (%), 2009•2011 80
Table 40: Annual Procurement Budgets by Cost Containment (%), 2011 81
Table 41: Annual Procurement Budgets in US$ by Region (%), 2011 82
Table 42: Annual Procurement Budgets in US$ by Company Turnover (%), 2011 83
Table 43: Expected Change in Total Procurement Expenditure of Construction Buyers (%), 2009–2011 85
Table 44: Expected Change in Total Procurement Expenditure by Revenue Growth (%), 2011 86
Table 45: Expected Change in Total Procurement Expenditure by Region (%), 2011 87
Table 46 Expected Change in Total Procurement Expenditure by Company Turnover (%), 2011 89
Table 47: Future Change in Expenditure by Product and Service Category by Buyers (%), 2011 91
Table 48: Variations in Regional Supplier Prices (%), 2011 97
Table 49: Variations in Regional Supplier Prices by Region (%), 2011 98
Table 50: Variations in Regional Supplier Prices by Company Turnover (%), 2011 99
Table 51: Critical Success Factors for Supplier Selection • Buyers vs. Supplier, 2011 102
Table 52: Future Procurement Objectives (%), 2011 106
Table 53: Future Procurement Objectives by Region (%), 2011 108
Table 54: Future Procurement Objectives by Company Turnover (%), 2011 110
Table 55: E–Procurement: Level of Implementation by buyers (%), 2011 111
Table 56: E–Procurement: Level of Implementation by respondents expecting increase in procurement budgets (%), 2011 113
Table 57: E–Procurement: Level of Implementation by Region (%), 2011 114
Table 58: E–Procurement: Level of Implementation by Company Turnover (%), 2011 116
Table 59: Survey Results • Closed Questions 118

List of Figures

Figure 1: Revenue Growth Optimism (%), 2009–2011
Figure 2: Revenue Growth Optimism by Company Type (%), 2009–2011
Figure 3: Revenue Growth Optimism by Region (%), 2009–2011
Figure 4: Revenue Growth Optimism by Turnover (%), 2011
Figure 5: Revenue Growth Optimism by Senior Level Respondents (%), 2011
Figure 6: Key Expected Changes In Business Structure in The Buyers Industry (%), 2011
Figure 7: Key Expected Changes in Business Structure in the Equipment And Materials Suppliers Industry (%), 2011
Figure 8: Key Expected Changes in Business Structure in the Other Construction Suppliers Industry (%), 2011
Figure 9: Merger and Acquisition Activity Expectations by Buyers, 2009–2011
Figure 10: Merger and Acquisition Activity Expectations, Equipment And Materials Suppliers Industry, 2009–2011
Figure 11: Merger and Acquisition Activity Expectations, Other Construction Industry Suppliers Industry, 2009–2010–2011
Figure 12: Merger and Acquisition Activity Expectations by Region, 2011
Figure 13: Merger and Acquisition Activity Expectations by Company Turnover, 2011
Figure 14: Top 5 Emerging Markets by Construction Contractors and Developers (%), 2011
Figure 15: Demand in Emerging Markets by Equipment And Materials Suppliers (%), 2011
Figure 16: Demand in Emerging Markets by Other Construction Suppliers (%), 2011
Figure 17: Demand in Emerging Markets by Region (%), 2011
Figure 18: Demand in Emerging Markets by Company Turnover (%), 2011
Figure 19: Growth Expectations in Developed Countries by Construction Contractors and Developers (%), 2011
Figure 20: Growth Expectations in Developed Countries by Equipment And Materials Suppliers (%), 2011
Figure 21: Growth Expectations in Developed Countries by Other Construction Suppliers (%), 2011
Figure 22: Growth Expectations in Developed Countries by Region (% 'increase' responses), 2011
Figure 23: Growth Expectations in Developed Countries by Company Turnover (% 'increase' responses), 2011
Figure 24: Leading Business Concerns (%), 2011–12
Figure 25: Top 5 Leading Business Concerns (%), 2011–12
Figure 26: Actions to Maintain and Secure Buyer Business • Buyer Responses (%), 2011
Figure 27: Actions to Maintain and Secure Buyer Business • Buyer vs. Supplier Responses (%), 2011
Figure 28: Actions to Maintain and Secure Buyer Business by Company Turnover (%), 2011
Figure 29: Actions to Maintain and Secure Buyer Business by Purchasing Decision Authority (%), 2011
Figure 30: Annual Procurement Budgets of Construction Buyers in US$ (%), 2009•2011
Figure 31: Annual Procurement Budgets in US$ by Region (%), 2011
Figure 32: Annual Procurement Budgets in US$ by Company Turnover (%), 2011
Figure 33: Expected Change in Total Procurement Expenditure of Construction Buyers (%), 2009–2011
Figure 34: Expected Change in Total Procurement Expenditure by Region (%), 2011
Figure 35: Expected Change in Total Procurement Expenditure by Company Turnover (%), 2011
Figure 36: Top Five Product and Service Category by Buyers (%), 2011
Figure 37: Future Change in Expenditure by Product and Service Category by buyers (%), 2011
Figure 38: Future Increase in Expenditure by Product and Service Category, Construction Buyers by Region (%), 2011
Figure 39: Future Increase in Expenditure by Product and Service Category of Buyers by Company Turnover (%), 2011
Figure 40: Variations in Regional Supplier Prices (%), 2011
Figure 41: Variations in Regional Supplier Prices by Region (%), 2011
Figure 42: Variations in Regional Supplier Prices by Company Turnover (%), 2011
Figure 43: Critical Success Factors for Supplier Selection • Buyers vs. Suppliers, 2011
Figure 44: Critical Success Factors for Supplier Selection • Buyers vs. Suppliers, 2011
Figure 45: Actions to Maintain and Secure Buyer Business by Purchasing Decision Authority (%), 2011
Figure 46: E–Procurement: Level of Implementation by buyers (%), 2011
Figure 47: E–Procurement: Level of Implementation by Region (%), 2011
Figure 48: E–Procurement: Level of Implementation by Company Turnover (%), 2011