In this interview, Miriam Drahmane, CEO of specialist construction marketers, BCM Agency, sets out her view of the construction sector’s current challenges and opportunities, and makes the case for informed decisions and timely actions - rather than hesitation now and playing catch-up later.
Q. Miriam, from your position, as someone who advises construction sector clients every day, what’s the state of the construction market in the UK right now?
A. Companies in the construction sector have been through an awful lot over the past few years – Covid, Brexit, inflation and supply chain issues, massive regulatory change, and now the added unknown of a new Government.
I think many businesses in the construction sector – particularly the smaller ones – have lived in uncertainty for the past four years or so, and have felt they were in limbo. That’s really hampered their ability to make decisions and to drive growth.
Many of the clients we work with have, however, seen significant growth over recent years despite all the challenges faced, and we can help others overcome hurdles and leverage the opportunities in the market.
Q. How so?
A. Companies that have taken the time to revisit their positioning and invested in marketing are reaping the rewards. Two of the things that we particularly focus on for our clients are research, and an emphasis on lead generation.
Construction-sector companies are starting to understand that, in order for marketing to be effective, they need to take the decision to invest not only in reaching out to prospects but in understanding exactly who those audiences are – that’s the research piece – and connecting with them in ways that are timely, relevant, and compelling, not just scattergun.
Waiting until the pipeline is dry and then panic-buying marketing support is costly, can be detrimental to cashflow and rarely gets the results you need when you need them. The sales cycle is often lengthy in construction and whilst solid B2B marketing can often shorten the buying timeline, this needs to be part of a long-term commitment and not a short-term fix.
Q. Should we be optimistic about the outcomes that might flow from this?
A. Absolutely, because what it signals is that the sector is now recognising that when you’re battling with, or just coming out of, difficult times, what you don’t do is play the waiting game.
Instead, you take the decision to achieve more with the same - or less – spend. It’s all about productivity. Segmentation, targeting, and positioning – the stalwarts of good B2B marketing for the past 50 plus years - play a critical role in that transformation.
Q. Isn’t hesitancy in an uncertain climate understandable, though?
A. Yes, it’s human nature to want to ‘wait and see’, but I’d make a few observations here.
Firstly, battening down the hatches in a storm means you tend not to look outside the ship to see what your competitors are doing, so you may lose first-mover and competitive advantage.
Secondly, the danger is that when you open the hatches again and see what’s going on around you, you make snap, reactive decisions that are not well informed.
We tell all our clients what research has proven time and time again: share of voice in a downturn equals share of market after it, so it’s important not to put off key marketing investment decisions, even in a difficult climate.
Q. But aren’t we heading for a better economic outlook in the construction market anyway?
A. Yes, I think we are.
Glenigan, which is one of the tools we use to alert our clients to new construction projects they can pitch for, currently states there’s been a 4% increase in project starts since 2023, and economic growth in the sector is expected to increase by 2% by 2025.
Q. Won’t this mean decision-making gets easier anyway?
A, In many ways, it will, and that’s great news for the sector.
But as I mentioned earlier, construction companies have also, in parallel, become more marketing-savvy, which means they will demand decisions that deliver greater returns moving forward.
Circumstances are easing, but construction industry marketers’ expectations around the returns and payback they must report to their Board are increasing.
Tech alone won’t deliver this – but trusted guidance from a sector-specific, results-focused marketing agency will.
Q. Will quicker and better decision-making by construction sector companies deliver rapid results?
A. We have to be realistic here. Major marketing decisions require research, strategic insight, and transparent measurement frameworks – and that can’t be achieved overnight.
It’s really easy to fall into the trap of equating output with outcomes in marketing. But solid research, an aligned strategy, and resource to correctly and efficiently implement means companies doing ‘B2B marketing properly’ should see ROI much quicker than those turning the marketing tap on and off with inaccurate intel on their audience and a lack of long-term commitment.
Q. But are the budgets available to support these decisions?
A. From a marketing perspective, this comes back to the importance of finding ways to make the marketing more productive, without necessarily spending more on it. It’s about working smarter, which is the segmentation, positioning and targeting piece again.
And this, in turn, is dependent on understanding what marketing success looks like for that business, in its markets – because it won’t be the same for every company. This is why measurement is key – setting considered KPIs enables transparent reporting to the Board, and, if met, subsequently should lead to further and possibly greater investment in marketing.
Q. Are you saying construction companies can market themselves effectively with only modest budgets?
A. Percentages of turnover are often bandied about from 2-8% depending on how aggressively you wish to market the business, but in reality many SMEs certainly will not be in a position to budget this amount.
This is why we completely immerse ourselves in our clients’ business and communicate with them intensively to clearly nail short, medium, and long-term marketing objectives, together with measures to work within available budgets as productively as possible.
The strategic planning we undertake will often reveal opportunities that haven’t even been considered. As an example, one of our clients targeted a brand new sector leading to exponential growth over the last 2 years.
Q. What are the hot topics construction companies need to make the decision to engage with?
A. Sustainability, regulatory change, and fire protection all rank high on the list.
We’ve taken this on board, too, running our regular Voices in Construction Insight Panels that bring industry experts together to discuss these challenges, share insights and look at how we can positively impact the sector.
And in our forthcoming Specifier Summit on 7th November, we’re bringing together over 150 construction professionals, and high-profile speakers, to debate sustainability in construction, and, in particular, how to move the sustainability conversation away from cost.
Q. So, Miriam, what’s the takeaway here? What’s the one thing you want the readers of this Q&A to understand?
A. I’ve spoken a lot about marketing, and that’s inevitable, given my background. But actually, what my comments are about is the need for the construction industry to unbatten those hatches and start making decisions, rather than waiting for a perfect view or a crystal ball!
The world is changing. Uncertainty may be the new normal. The lay of the land may now often be shrouded in mist (not to mention torrential rain, which, of late, has had its own impacts on the construction industry!), but if construction players make decisions to invest and to move forward now - rather than waiting months so their competitors beat them to it - they’ll be leading, not following.
For the next article in this series, BCM is actively recruiting sustainability-focused construction companies for their input – if that’s you, get in touch with BCM Agency today.