One of the hardest hit was the construction industry. When the bubble burst, it led to massive job loss.
A large portion of the American workforce was left unemployed, with an estimated 2.3 million of the total 8.2 million jobs lost coming from the construction industry. That translated into losing slightly more than 40% of the sector’s total workforce. While things have started to turn around, and unemployment has slowly returned to pre recession levels, the construction sector itself is still recovering.
Even as new construction opportunities arise, contractors and their companies are still understandably cautious (PDF) about biting off more than they can chew. Projects face the possibility of running into snags with higher expenditures because of the increase of supply costs and labor wages.
In addition to the increased material and labor costs, companies face the possibilities of falling behind schedule because of the still depleted workforce, thus incurring even more expenses.
However, with the recent election bringing a man with close ties to the real estate and construction markets to Washington, many are hopeful that change could be on the horizon. During the campaign, President Trump proposed a massive influx of government spending on infrastructure. Spending to the tune of 1 trillion dollars to be exact. In addition, the new administration has also vowed to reduce regulations, which would save both time and money for those in the construction market.
The past administration’s stimulus package did boost spending and earmark money for infrastructure projects, but the overall spending on America’s roadways and bridges was not quite as substantial as some were hoping. While the same could prove to be true with the current administration, it certainly doesn’t hurt to try and stay ahead of the competition by preparing for a possible increase in spending moving forward.
Speaking in a recent interview on CBS, the president claimed he is very close to having a plan ready and could announce it within the next few weeks. Whether that happens remains to be seen, but the fact that it is on the table and seemingly a priority is very promising.
What It Could Mean For Construction
So, what could a reduction in regulations and increased spending on America’s roadways and bridges translate into? More competition for one thing. With guaranteed government dollars at stake, companies will be chomping at the bit to get in on the action. More working construction projects will almost certainly lead to an increased demand for heavy equipment.
How can anyone stand out from the pack? Research shows that those in the market for new equipment rely heavily on the web to inform their decisions.
As technology has evolved companies have increasingly turned to the internet as a tool used for researching news, reviews, dealer, and brand information.
What To Do Moving Forward
Having a good web presence is a start, but how can you steer customers to your product? With so many choices out there how can you possibly narrow the field and attract those who are most likely to spend money with your company?
Should the government’s plan for spending move forward there will be a bevy of new contracts available. Companies will need the equipment to complete the contracts awarded. How can anyone be prepared for this and maneuver their company to be in the best possible position for the future?
By utilizing the resources available in Randall-Reilly’s EDA, it is possible to identify the perfect audience for your product. This powerful online tool allows you to identify and segment actual construction equipment owners.
Get An Edge Over The Competition
TARGET BUYING CYCLES
For instance, you can now view potential customers’ buying cycles. Do they only buy every few years? Do they tend to spend more in boom periods? The answers to questions like these will allow you to see who is most likely to purchase based on past behavior and trends, giving your company an advantage moving into a time of potential industry expansion.
Is someone more likely to stick with the same brand regardless of price? What about in times with more competition? Are companies who own multiple machines from different manufacturers more easily swayed to a new product? All of this information is easily accessible with the expansive database offered.
If the current talks do translate into more money being spent, competition for construction contracts will heat up. Being able to claim a bigger part of the market share with this very precise client base could be very advantageous. With a few clicks, all this information can be at your fingertips.
Nothing in life is certain, but as we move forward and the industry continues to recover from the recession, the chance of a sharp increase for infrastructure spending is a tantalizing possibility. If the president can move forward with his campaign promises, companies need to consider how to capitalize. Applying intelligence from Randall-Reilly’s EDA can be the key for a company gaining a valuable edge over the competition.