Masonry Magazine December 1996 Page. 11
Masonry
Promotion
Change
or Die:
More than 43 million jobs have been erased in the U.S. since 1979, according to a New York Times analysis of Labor Department numbers.
In the race to compete in global markets, big business has gone on a diet -- and neighborhoods from coast to coast are littered with casualties from the swath of corporate downsizing.
Entire companies and industries have disappeared from the landscape replaced by vigorous, vibrant competitors more in tune with the changing market demands.
The free-spending Yuppies of the 1980's have become the fearful and aging baby boomers of the 1990's -- worried about health, pensions and retirement. The opulent palaces of past construction frenzies have given way to sparse, industrial-style suburban boxes -- from retail power centers to flexible-space offices. "Hoteling" and telecommuting have changed workspace footage and demand.
The Dilbert cartoon characters have aptly captured the current climate of business morale: "We abuse our employees and pass the savings on to you" What's next?
The competitive marketplace has been re-engineered, folks. And it's affecting our psyches, our pocket-books and our business plans.
You may not be an employee of a shrinking Fortune 500 company, but as a masonry contractor, you have clearly been impacted by re-engineering.
Let's do a quick assessment. Who is your competition? If you think it's other masonry contractors, you're wrong! Competing systems are gaining in strength and numbers. New technologies are emerging and gaining adoption at a quick pace: tilt-wall, pre-cast concrete, aerated cellular concrete, foam wall, plastic and steel. Customers can now get the look of brick or CMU in a pre-fab facade!
How are they selling against you? Have you ever seen the competition's marketing materials? You might be shocked. They've pinpointed vulnerable areas, adopted masonry's strengths and encouraged misconceptions to their advantage. As the longstanding, incumbent construction system, masonry is a sitting duck for everyone to attack. The industry has become a sleeping giant, mute and unarmed in a high-stakes battle for survival.
What share of market have they penetrated? Tiltwall construction, in particular, has siphoned a strong and growing stream of revenue directly from masonry contractor pockets. In 1995 alone, the first year usage statistics have been collected and quantified, nearly 130 million square feet of tilt-up panels were constructed for a total floor area equivalency of 322 million square feet! And this is only the impact of one competing system.
How have they changed the market environment? Although once a strong incumbent, masonry is no longer driving the market. It's a new ball game and the rules
The Business
Blueprint for
the Future
by Nancy Keene
Keene & Co. Marketing Counsel
Dallas, Texas
have been set by other players. Masonry may not even be on the radar screen with a newer, younger generation of architects, real estate portfolio managers and corporate construction staff. Contractors and manufacturers are in a defensive position. And....in football parlance, you have to get the ball back before you can score and win the game!
What is your action plan for retaliation? Before you pass the collection plate at Masonry Expo for new brochures and an ad campaign, examine the perspective of those who determine your viability in the marketplace. A recent series of architect focus groups conducted by the Associated Masonry Contractors of Texas Association reveals that the masonry industry has a customer service and satisfaction problem not just a promotional challenge.
Who is the real decisionmaker? If you think it's the general contractor, then you've boxed yourself in to a potentially fatal fate of price-bid competition. The action is at the higher end of the sales cycle "food chain." The building owners are at the top of the hierarchy. The developers serve the interests of the owners. And, in turn, the architects and engineers design to their collective prerequisites. If masonry isn't considered or specified at the design stage, it's a loss for you and a win for competing systems.
Shift your focus where it will have the biggest impact. If you want to influence the destiny of your business, doesn't it make