Global Construction Industry Supplier Outlook Survey 2013 2014Global Construction Industry Supplier Outlook Survey 2013–2014: Market Trends, Marketing Spend and Sales Strategies

© Timetric. This report is a licensed product and is not to be photocopied

Global Construction Industry Supplier

Outlook Survey 2013–2014:

Market Trends, Marketing Spend and Sales Strategies in

the Global Construction Industry

Reference code: CN2145SU

Published: June 2013

Timetric

John Carpenter House

7 Carmelite Street

London EC4Y 0BS

United Kingdom

Tel: +44 (0)20 7936 6400

Fax: +44 (0)20 7336 6813

Website: www.timetric.com

TABLE OF CONTENTS

Global Construction Supplier Industry Outlook Survey 2013–2014:

Market Trends, Marketing Spend and Sales Strategies in the Global Construction Industry Page 2

© Timetric. This product is licensed and is not to be photocopied Published: June 2013

TABLE OF CONTENTS

1 Introduction .................................................................................................................. 8

1.1 What is this report about? ...................................................................................................... 8

1.2 Definitions .............................................................................................................................. 8

1.3 Methodology .......................................................................................................................... 9

1.4 Global Construction Industry: Profile of Survey Respondents .............................................. 11

1.4.1 Global construction industry: profile of contractor and developer respondents ........................... 11

1.4.2 Global construction industry: profile of supplier respondents ...................................................... 12

2 Executive Summary ................................................................................................... 14

3 Global Construction Industry Dynamics .................................................................. 16

3.1 Revenue Growth Projections in the Global Construction Industry ........................................ 17

3.1.1 Revenue growth projections by company type ............................................................................ 19

3.1.2 Revenue growth projections by region ......................................................................................... 21

3.1.3 Revenue growth projections by turnover ..................................................................................... 22

3.1.4 Revenue growth projections by senior-level respondents ........................................................... 24

3.2 Future Developments in Business Structure in the Global Construction Industry ................. 25

3.2.1 Future developments in business structure by contractors and developers ................................ 25

3.2.2 Future developments in business structure by suppliers ............................................................. 28

3.3 Merger and Acquisition Activity Projections in the Global Construction Industry ................... 31

3.3.1 M&A activity projections by contractors and developers ............................................................. 31

3.3.2 M&A activity projections by suppliers ........................................................................................... 33

3.3.3 M&A activity projections by region ............................................................................................... 37

3.3.4 M&A activity projections by company turnover ............................................................................ 38

3.4 Estimation of Capital Expenditure in the Global Construction Industry ................................. 39

3.4.1 Estimation of capital expenditure by contractors and developers ................................................ 39

3.4.2 Estimation of capital expenditure by suppliers ............................................................................. 41

3.4.3 Estimation of capital expenditure by region ................................................................................. 43

3.4.4 Estimation of capital expenditure by company turnover .............................................................. 44

3.5 Planned Change in Staff Recruitment Activity in Global Construction Industry ..................... 45

3.5.1 Planned change in staff recruitment activity by contractors and developers ............................... 45

3.5.2 Planned change in staff recruitment activity by suppliers ............................................................ 47

3.5.3 Planned change in staff recruitment activity by region ................................................................ 48

3.5.4 Planned change in staff recruitment activity by company turnover.............................................. 49

4 Global Construction Industry Market Growth Outlook ........................................... 50

4.1 Global Construction Industry – Demand in Emerging Markets ............................................. 51

4.1.1 Demand in emerging markets by contractors and developers .................................................... 51

4.1.2 Demand in emerging markets by suppliers .................................................................................. 53

4.1.3 Demand in emerging markets by region ...................................................................................... 57

4.1.4 Demand in emerging markets by company turnover ................................................................... 58

4.2 Global Construction Industry – Growth Projections in Developed Countries ........................ 59

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4.2.1 Growth projections in developed countries by contractors and developers ................................ 60

4.2.2 Growth projections in developed countries by suppliers .............................................................. 62

4.2.3 Growth projections in developed countries by region .................................................................. 65

4.2.4 Growth projections in developed countries by company turnover ............................................... 67

5 Threats and Opportunities for the Global Construction Industry .......................... 68

5.1 Global Construction Industry – Leading Business Concerns for 2013–2014 ........................ 69

5.1.1 Leading business concerns for 2013–2014 by company type ..................................................... 72

5.1.2 Leading business concerns for 2013–2014 by region ................................................................. 74

5.1.3 Leading business concerns for 2013–2014 by company turnover .............................................. 75

5.2 Global Construction Industry – Key Supplier Actions to Maintain and Win Buyer Business .. 76

5.2.1 Actions to maintain and secure buyer business by company type .............................................. 76

5.2.2 Actions to maintain and secure buyer business by region ........................................................... 78

5.2.3 Actions to maintain and secure buyer business by turnover ....................................................... 80

5.2.4 Actions to maintain and secure buyer business by senior-level respondents ............................. 81

5.3 Global Construction Industry – Key Variations in Operational Costs .................................... 82

5.3.1 Key variations in operational costs by contractors and developers ............................................. 82

5.3.2 Key variations in operational costs by suppliers .......................................................................... 84

5.3.3 Key variations in operational costs by region ............................................................................... 86

5.3.4 Key variations in operational costs by company turnover ............................................................ 87

5.4 Global Construction Industry – Impact of Costs on Product Pricing ...................................... 88

5.4.1 Impact of costs on product pricing by contractors and developers .............................................. 88

5.4.2 Impact of costs on product pricing by suppliers ........................................................................... 89

6 Global Construction Industry - Supplier Marketing Spend Activity ...................... 90

6.1 Annual Marketing Budgets – Global Construction Industry Suppliers ................................... 91

6.1.1 Annual marketing budgets by suppliers ....................................................................................... 91

6.1.2 Annual marketing budgets by region ........................................................................................... 93

6.1.3 Annual marketing budgets by company turnover ......................................................................... 94

6.2 Planned Change in Marketing Expenditure Levels – Global Construction Industry Suppliers95

6.2.1 Planned change in marketing expenditure by suppliers .............................................................. 96

6.2.2 Planned change in marketing expenditure by region ................................................................. 100

6.2.3 Planned change in marketing expenditure by company turnover .............................................. 101

6.2.4 Planned change in marketing expenditure levels by revenue growth expectations .................. 102

6.3 Future Investment in Media Channels – Global Construction Industry Suppliers ................ 103

6.3.1 Future investment in media channels by suppliers .................................................................... 103

6.3.2 Future investment in media channels by region ........................................................................ 106

6.3.3 Future investment in media channels by company turnover ..................................................... 107

6.4 Global Construction Industry Suppliers' Future Investment in Marketing and Sales Technology

108

6.4.1 Planned investment in marketing and sales technologies by suppliers ..................................... 108

6.4.2 Planned investment in marketing and sales technologies by region ......................................... 110

6.4.3 Planned investment in marketing and sales technologies by company turnover ...................... 111

7 Marketing and Sales Behaviors and Strategies in 2013–2014 ............................. 112

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7.1 Key Marketing Aims for 2013–2014 – Global Construction Industry ................................... 113

7.1.1 Key marketing aims by suppliers ............................................................................................... 113

7.1.2 Key marketing aims by region .................................................................................................... 116

7.1.3 Key marketing aims by company turnover ................................................................................. 116

7.1.4 Key marketing aims by revenue growth expectations ............................................................... 117

7.2 Essential Amendments to Marketing Activities in 2013–2014 ............................................. 118

7.2.1 Amendments to marketing activities by suppliers ...................................................................... 118

7.2.2 Amendments to marketing activities by region .......................................................................... 120

7.2.3 Amendments to marketing activities by company turnover ....................................................... 122

7.3 Best Uses of New Media for Business Prospects – Global Construction Industry .............. 123

7.3.1 Best uses of new media by suppliers ......................................................................................... 123

7.3.2 Best uses of new media by region ............................................................................................. 125

7.3.3 Best uses of new media by company turnover .......................................................................... 127

7.4 Critical Success Factors for Choosing a Marketing Agency ............................................... 129

7.4.1 Critical success factors by suppliers .......................................................................................... 129

7.4.2 Critical success factors for choosing a marketing agency by region ......................................... 132

7.4.3 Critical success factors for choosing a marketing agency by company turnover ...................... 133

8 Appendix ................................................................................................................... 134

8.1 Survey Results – Closed Questions ................................................................................... 134

8.2 Methodology ...................................................................................................................... 152

8.3 Contact Us ......................................................................................................................... 152

8.4 About Timetric.................................................................................................................... 152

8.5 Disclaimer .......................................................................................................................... 153

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LIST OF FIGURES

Figure 1: Revenue Growth Optimism in the Global Construction Industry (%), 2009–2013 ......................................................................18 Figure 2: Revenue Growth Optimism in the Global Construction Industry by Company Type (%), 2009–2013 .........................................21 Figure 3: Revenue Growth Optimism in the Global Construction Industry by Region (%), 2013 ...............................................................22 Figure 4: Revenue Growth Optimism in the Global Construction Industry by Turnover (%), 2013 ............................................................23 Figure 5: Revenue Growth Optimism by Senior-Level Respondents (%), 2013 ........................................................................................24 Figure 6: Key Expected Changes in the Business Structure of Construction Contractors and Developers (%), 2013 ...............................27 Figure 7: Key Expected Changes in the Business Structure of Construction Equipment and Materials Suppliers (%), 2013 ....................29 Figure 8: Key Expected Changes in the Business Structure of Other Construction Suppliers (%), 2013 ..................................................30 Figure 9: M&A Activity Projections of Construction Contractors and Developers (%), 2009–2013 ............................................................33 Figure 10: M&A Activity Projections of Construction Equipment and Materials Suppliers (%), 2009–2013 ...............................................35 Figure 11: M&A Activity Projections of Other Construction Suppliers (%), 2009–2013 .............................................................................36 Figure 12: Capital Expenditure Expectations by Construction Contractors and Developers (%), 2013 .....................................................40 Figure 13: Capital Expenditure Expectations by Construction Equipment and Materials Suppliers (%), 2013 ..........................................41 Figure 14: Capital Expenditure Expectations by Other Construction Suppliers (%), 2013.........................................................................42 Figure 15: Global Construction Industry – Increase in Capital Expenditure by Region (%), 2013 .............................................................43 Figure 16: Global Construction Industry – Increase in Capital Expenditure by Turnover (%), 2013 ..........................................................44 Figure 17: Global Construction Industry – Planned Change in Staff Recruitment Activity by Contractors and Developers (%), 2013 .......46 Figure 18: Global Construction Industry – Planned Change in Staff Recruitment Activity by Suppliers (%), 2013 ....................................47 Figure 19: Global Construction Industry – Planned Change in Staff Recruitment Activity by Region (%), 2013 ........................................48 Figure 20: Global Construction Industry – Planned Change in Staff Recruitment Activity by Company Turnover (%), 2013 .....................49 Figure 21: Global Construction Industry – Top Ten Growth Regions (%), 2013 ........................................................................................50 Figure 22: Global Construction Industry – Top Five Emerging Markets, 2013 ..........................................................................................51 Figure 23: Demand in Emerging Markets by Construction Contractors and Developers (%), 2013...........................................................53 Figure 24: Demand in Emerging Markets by Construction Equipment and Materials Suppliers (%), 2013 ................................................55 Figure 25: Global Construction Industry – Increase of Demand in Emerging Markets by Company Turnover (%), 2013 ..........................58 Figure 26: Global Construction Industry – Top Five Developed Regions by Growth (%), 2013 ................................................................59 Figure 27: Construction Contractors and Developers – Growth Projections in Developed Countries (%), 2013 ........................................61 Figure 28: Construction Equipment and Materials Suppliers – Growth Projections in Developed Countries (%), 2013 .............................63 Figure 29: Other Construction Suppliers – Growth Projections in Developed Countries (%), 2013 ...........................................................65 Figure 30: Global Construction Industry – Increase in Growth Projections of Developed Countries by Region (%), 2013 .........................66 Figure 31: Global Construction Industry – Top Five Leading Business Concerns, 2013–2014 .................................................................70 Figure 32: Global Construction Industry – Leading Business Concerns (%), 2009–2013 .........................................................................71 Figure 33: Global Construction Industry – Securing Buyer Business: Buyer vs. Supplier Responses (%), 2013 .......................................77 Figure 34: Global Construction Industry – Securing Buyer Business by Region (%), 2013 .......................................................................79 Figure 35: Global Construction Industry – Securing Buyer Business by Senior-Level Respondents (%), 2013 .........................................81 Figure 36: Key Variations in Operational Costs of Construction Contractors and Developers (%), 2013 ..................................................83 Figure 37: Key Variations in Operational Costs of Construction Equipment and Materials Suppliers (%), 2013 ........................................85 Figure 38: Key Variations in Operational Costs of Other Construction Suppliers (%), 2013 ......................................................................86 Figure 39: Impact of Changing Costs on Product Pricing by Construction Contractors and Developers (%), 2013 ...................................89 Figure 40: Annual Marketing Budgets – Construction Equipment and Materials Suppliers (%), 2009−2013 .............................................92 Figure 41: Annual Marketing Budgets – Other Construction Industry Suppliers (%), 2009−2013 .............................................................92 Figure 42: Annual Marketing Budgets by Region – Global Construction Industry Suppliers (%), 2013 .....................................................93 Figure 43: Annual Marketing Budgets by Company Turnover – Global Construction Industry Suppliers (%), 2013 ..................................94 Figure 44: Planned Change in Marketing Expenditure (%), 2009−2013 ...................................................................................................95 Figure 45: Planned Change in Marketing Expenditure – Construction Equipment and Materials Suppliers (%), 2009−2013 ....................97 Figure 46: Planned Change in Marketing Expenditure – Other Construction Industry Suppliers (%), 2009−2013 .....................................99 Figure 47: Planned Change in Marketing Expenditure Levels by Turnover (%), 2013 ............................................................................ 101 Figure 48: Future Investment in Media Channels by Region (% ‘Increase’ Responses), 2013 ............................................................... 106 Figure 49: Planned Investment in Marketing and Sales Technologies by Suppliers (%), 2013 ............................................................... 110 Figure 50: Key Marketing Aims – Construction Equipment and Materials Suppliers (%), 2013 ............................................................... 114 Figure 51: Key Marketing Aims – Other Construction Industry Suppliers (%), 2013 ............................................................................... 115 Figure 52: Key Marketing Aims by Region – Global Construction Industry Suppliers (%), 2013 ............................................................. 116 Figure 53: Amendments to Marketing Activities by Global Construction Industry Suppliers (%), 2013–2014 .......................................... 120 Figure 54: Best Uses of New Media – Global Construction Industry Suppliers (%), 2013 ....................................................................... 124 Figure 55: Global Construction Industry Suppliers – Best Uses of New Media by Region (%), 2013 ...................................................... 126 Figure 56: Global Construction Industry Suppliers – Best Uses of New Media by Turnover (%), 2013 ................................................... 128 Figure 57: Critical Success Factors – Construction Equipment and Materials Suppliers (%), 2009−2013 .............................................. 130 Figure 58: Critical Success Factors – Other Construction Industry Suppliers (%), 2009−2013 ............................................................... 131

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LIST OF TABLES

Table 1: Global Construction Industry Survey Respondents by Company Type, 2013 .............................................................................11 Table 2: Global Construction Industry Contractor and Developer Respondents by Job Role (%), 2013 ...................................................11 Table 3: Global Construction Industry Contractor and Developer Respondents by Company Turnover (%), 2013 ...................................12 Table 4: Global Construction Industry Contractor and Developer Respondents by Region (%), 2013 ......................................................12 Table 5: Global Construction Industry Supplier Respondents by Job Role (%), 2013 ...............................................................................13 Table 6: Global Construction Industry Supplier Respondents by Company Turnover (%), 2013 ...............................................................13 Table 7: Global Construction Industry Supplier Respondents by Region (%), 2013 .................................................................................13 Table 8: Revenue Growth Optimism in the Global Construction Industry (%), 2009–2013 .......................................................................18 Table 9: Revenue Growth Optimism in the Global Construction Industry by Contractors and Developers (%), 2009–2013 ......................20 Table 10: Revenue Growth Optimism in the Global Construction Industry by Suppliers (%), 2009–2013 .................................................20 Table 11: Revenue Growth Optimism in the Global Construction Industry by Region (%), 2013 ..............................................................22 Table 12: Revenue Growth Optimism in the Global Construction Industry by Turnover (%), 2013 ...........................................................23 Table 13: Revenue Growth Optimism by Senior-Level Respondents (%), 2013 .......................................................................................24 Table 14: Key Expected Changes in the Business Structure of Construction Contractors and Developers (%), 2013 ..............................26 Table 15: Key Expected Changes in the Business Structure of Construction Equipment and Materials Suppliers (%), 2013 ...................29 Table 16: M&A Activity Projections of Construction Contractors and Developers (%), 2009–2013 ...........................................................32 Table 17: M&A Activity Projections of Construction Equipment and Materials Suppliers (%), 2009–2013 ................................................34 Table 18: M&A Activity Projections of Other Construction Suppliers (%), 2009–2013 ..............................................................................36 Table 19: Global Construction Industry – M&A Activity Projections by Region (%), 2013 .........................................................................38 Table 20: Global Construction Industry – M&A Activity Projections by Turnover (%), 2013 ......................................................................38 Table 21: Capital Expenditure Expectations by Construction Contractors and Developers (%), 2013 ......................................................40 Table 22: Capital Expenditure Expectations by Other Construction Suppliers (%), 2013 ..........................................................................42 Table 23: Global Construction Industry – Increase in Capital Expenditure by Region (%), 2013 ..............................................................43 Table 24: Global Construction Industry – Increase in Capital Expenditure by Turnover (%), 2013 ...........................................................44 Table 25: Global Construction Industry – Planned Change in Staff Recruitment Activity by Contractors and Developers (%), 2013.........46 Table 26: Global Construction Industry – Planned Change in Staff Recruitment Activity by Suppliers (%), 2013 ......................................47 Table 27: Global Construction Industry – Planned Change in Staff Recruitment Activity by Region (%), 2013 .........................................48 Table 28: Global Construction Industry – Planned Change in Staff Recruitment Activity by Company Turnover (%), 2013 ......................49 Table 29: Demand in Emerging Markets by Construction Contractors and Developers (%), 2013 ............................................................52 Table 30: Demand in Emerging Markets by Construction Equipment and Materials Suppliers (%), 2013 .................................................54 Table 31: Demand in Emerging Markets by Other Construction Suppliers (%), 2013 ...............................................................................56 Table 32: Global Construction Industry – Increase of Demand in Emerging Markets by Region (%), 2013 ..............................................57 Table 33: Construction Contractors and Developers – Growth Projections in Developed Countries (%), 2013 .........................................61 Table 34: Construction Equipment and Materials Suppliers – Growth Projections in Developed Countries (%), 2013 ..............................63 Table 35: Other Construction Suppliers – Growth Projections in Developed Countries (%), 2013 ............................................................64 Table 36: Global Construction Industry – Increase in Growth Projections of Developed Countries by Region (%), 2013 ..........................66 Table 37: Global Construction Industry – Increase in Growth Projections of Developed Countries by Turnover (%), 2013 .......................67 Table 38: Global Construction Industry – Leading Business Concerns (%), 2009–2013...........................................................................71 Table 39: Leading Business Concerns by Company Type (%), 2013–2014 .............................................................................................73 Table 40: Global Construction Industry – Leading Business Concerns by Region (%), 2013–2014 ..........................................................74 Table 41: Global Construction Industry – Leading Business Concerns by Turnover (%), 2013–2014 .......................................................75 Table 42: Global Construction Industry – Securing Buyer Business: Buyer vs. Supplier Responses (%), 2013 ........................................77 Table 43: Global Construction Industry – Securing Buyer Business by Region (%), 2013 ........................................................................78 Table 44: Global Construction Industry – Securing Buyer Business by Turnover (%), 2013 .....................................................................80 Table 45: Key Variations in Operational Costs of Construction Contractors and Developers (%), 2013 ...................................................83 Table 46: Key Variations in Operational Costs of Construction Equipment and Materials Suppliers (%), 2013 .........................................84 Table 47: Key Variations in Operational Costs of Other Construction Suppliers (%), 2013 .......................................................................85 Table 48: Key Variations in Operational Costs by Region (%), 2013 ........................................................................................................86 Table 49: Key Variations in Operational Costs by Company Turnover (%), 2013 .....................................................................................87 Table 50: Impact of Changing Costs on Product Pricing by Construction Contractors and Developers (%), 2013 ....................................88 Table 51: Impact of Changing Costs on Product Pricing by Suppliers (%), 2013 ......................................................................................89 Table 52: Annual Marketing Budgets – Construction Equipment and Materials Suppliers (%), 2009−2013 ..............................................91 Table 53: Annual Marketing Budgets – Other Construction Industry Suppliers (%), 2009−2013 ...............................................................92 Table 54: Annual Marketing Budgets by Region – Global Construction Industry Suppliers (%), 2013 ......................................................93 Table 55: Annual Marketing Budgets by Company Turnover – Global Construction Industry Suppliers (%), 2013 ...................................94 Table 56: Planned Change in Marketing Expenditure – Construction Equipment and Materials Suppliers (%), 2009−2013 .....................97 Table 57: Planned Change in Marketing Expenditure – Other Construction Industry Suppliers (%), 2009−2013 ......................................99 Table 58: Planned Change in Marketing Expenditure Levels by Region (%), 2013 ................................................................................ 100 Table 60: Planned Change in Marketing Expenditure Levels by Revenue Growth Expectations (%), 2013 ............................................ 102 Table 61: Future Investment in Media Channels – Construction Equipment and Materials Suppliers (%), 2013 ..................................... 104 Table 62: Future Investment in Media Channels – Other Construction Industry Suppliers (%), 2013 ..................................................... 105 Table 63: Future Investment in Media Channels by Turnover (% ‘Increase’ Responses), 2013 .............................................................. 107 Table 64: Planned Investment in Marketing and Sales Technologies by Suppliers (%), 2013 ................................................................ 109

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Table 65: Planned Investment in Marketing and Sales Technologies by Region (%), 2013 .................................................................... 111 Table 66: Planned Investment in Marketing and Sales Technologies by Company Turnover (%), 2013 ................................................. 111 Table 67: Key Marketing Aims – Construction Equipment and Materials Suppliers (%), 2013 ................................................................ 114 Table 68: Key Marketing Aims – Other Construction Industry Suppliers (%), 2013................................................................................. 115 Table 68: Key Marketing Aims by Turnover – Global Construction Industry Suppliers (%), 2013 ........................................................... 117 Table 69: Key Marketing Aims by Revenue Growth Expectations (%), 2013 .......................................................................................... 117 Table 70: Amendments to Marketing Activities by Global Construction Industry Suppliers (%), 2013–2014 ........................................... 119 Table 71: Amendments to Marketing Activities by Region – Global Construction Industry (%), 2013–2014 ............................................ 121 Table 72: Amendments to Marketing Activities by Turnover – Global Construction Industry (%), 2013–2014 ......................................... 122 Table 73: Best Uses of New Media – Global Construction Industry Suppliers (%), 2013 ........................................................................ 124 Table 74: Global Construction Industry Suppliers – Best Uses of New Media by Region (%), 2013 ....................................................... 125 Table 75: Global Construction Industry Suppliers – Best Uses of New Media by Turnover (%), 2013 .................................................... 127 Table 78: Critical Success Factors by Region – Global Construction Industry (%), 2013........................................................................ 132 Table 79: Critical Success Factors by Turnover – Global Construction Industry Suppliers (%), 2013 ..................................................... 133 Table 80: Global Construction Industry Survey Results – Closed Questions .......................................................................................... 134

INTRODUCTION




1 Introduction

1.1 What is this report about?

This report is the result of an extensive survey drawn from Timetric’s exclusive panel of leading

construction industry companies. This report provides the reader with a definitive analysis of the global

construction industry outlook, and explores how business opportunities and demands are expected to

change in 2013–2014. This report not only provides access to the opinions and strategies of business

decision makers and competitors, but also examines the actions surrounding business priorities. The

report provides respondent information by region, company type and size.

The report also examines:

Revenue growth expectations: projects the revenue growth expectations of major stakeholders of

the industry

Market-specific growth opportunities: identifies the main growth prospects in order to provide

assistance for companies in effectively allocating their marketing activities and budgets

M&A: expectations surrounding M&A activity and core influencing factors

Leading business concerns: identifies leading business concerns and subsequent efforts to

negate them

Marketing expenditure trends: tracks the marketing budgets of supplier companies and forecasts

possible changes to expenditure

Key factors for marketing agency selection: provides insights into the marketing needs of

competitors among supplier companies

1.2 Definitions

Construction contractors and developers (buyer): includes construction contractors or

subcontractors, private-sector project sponsors, developers or investors, and public-sector project

sponsors and developers.

Construction equipment and material suppliers (supplier 1): includes construction equipment

suppliers; building merchants or products distributors; construction materials or building products

manufacturers; furniture, fittings or interior products manufacturers; and other suppliers for raw

materials, logistics and factory equipment.

Other construction industry suppliers (supplier 2): includes architecture and design companies,

planning; surveying or civil engineering companies; trade bodies; academia or industry observers;

government or public-sector organizations; and other suppliers of technology and consultancy

services.

INTRODUCTION




Email marketing: It is defined as directly marketing a business message to a group of customers

using email.

Customer relationship management (CRM): It involves using technology to organize, automate,

and synchronize sales, marketing, customer service, and technical support.

Company turnover: companies with turnover of less than US$100 million are identified in the

report as small companies. In addition, companies with turnover between US$100 million–US$1

billion are referred to as medium-sized companies, and companies with turnover of more than US$1

billion as large companies.

1.3 Methodology

All Timetric reports are rigorously sourced and created according to a comprehensive four-stage

methodology:

1) Online survey

The research source in this report is based on the surveyed opinions and expectations of senior

industry professionals. Timetric conducted an extensive online survey in March-April 2013, which was

taken by 126 senior global industry executives worldwide; the respondents include C-level executives,

directors, and managers.

The survey’s respondents are drawn from the Timetric Industry Insight Panel, an exclusive industry

panel covering over 2 million business professionals worldwide. Respondents represent a dedicated

professional community where participants are surveyed ‘in context’, drawn from industry magazine and

media communities including the readership of Blueprint, designbuild-network.com, Tunnels &

Tunneling International and Cranes Today, as well as delegate relationships across Timetric’s global

industry conference and forum events. These business communities are made up of qualified

professionals who rely on Timetric’s flagship media brands, enabling Timetric to access informed

industry opinions.

INTRODUCTION




2) Secondary research

Collection of the latest market-specific data from a wide variety of respected third-party industry

sources:

Government statistics

Industry associations

Company filings

Broker reports

International organizations

Industry news websites

Industry reports

3) Data analysis and report writing

The results of this research have been analyzed and evaluated by Timetric’s industry-specific in-house

analysts. The analysts’ research and expertise, pedigree in marketing, market research, consulting

backgrounds in their industry, and ongoing education on leading economic and industry news have

shaped their analytical judgments and conclusions of the opinions gathered.

4) Quality control

Detailed process manuals

Standardized report templates and accompanying style guides

Advanced data analysis and survey programming tools

QC checklists

Randomized spot checks on data integrity

Peer review

Senior-level QC

SAMPLE PAGES




Figure 9: M&A Activity Projections of Construction Contractors and Developers (%), 2009–2013

Source: Timetric Industry Survey 2013 © Timetric

1.3.1 M&A activity projections by suppliers

Respondents from global equipment and materials supplier companies expect increased levels of

consolidation in the global construction industry in 2013, as 46% of respondents expect either a

‘significant increase’ or ‘increase’ in M&A activity. Some of the main reasons for this projected increase

include uneven market conditions, growing infrastructure needs, rising operational costs, and the need

for geographic expansion. A C-level executive from construction materials supplier based in North

America commented:

“The rate at which companies are liquidating is still high versus the pre-recession period, and to survive,

organizations will pursue mergers within their industry sectors to create larger barriers to entry for new

entrants, and ensure more substantial economies of scale.”

In addition, a manager-level executive from a construction equipment supplier stated:

“The ongoing financial constraints will continue to drive companies to reduce costs and consolidate.”

SAMPLE PAGES




Figure 23: Demand in Emerging Markets by Construction Contractors and Developers (%), 2013


1.3.2 Demand in emerging markets by suppliers

Respondents from construction equipment and materials supplier companies identified China, India

Russia, Eastern Europe and Brazil as emerging markets that offer strong growth potential for the global

construction industry in 2013. These results vary slightly from those recorded in the 2012 survey, where

China, Russia, Brazil, South Africa and Saudi Arabia were identified as promising emerging markets.

Unlike contractors and developers, who chose India, equipment and materials suppliers consider China

to be a promising emerging market, as indicated by 46% of respondents. Demand for construction

equipment and materials in China has increased in the last five years due to increased investments in

the infrastructure sector, as plans for the construction of roads, rail projects, high-rise residential

complexes, hotels and urban planning projects are under way in different states across China. In

September 2012, US construction equipment manufacturer Caterpillar forecast that China's

construction equipment market would finally emerge from its downturn in 2013, following an

announcement by the Chinese government’s infrastructure investment program. A senior executive

from Caterpillar commented:

“With the announcement of the US$150 billion infrastructure investments made by China's National

Development and Reform Commission, we could expect to see some positive change in the industry,

maybe as early as the first quarter of 2013. In addition, China's decision to accelerate investment in

infrastructure projects is going to have a direct positive impact on our industry and Caterpillar's

business in China."

In March 2013, the Urban Planning and Design Institute of Shenzhen and architectural firm Hassell

together secured a deal for an urban planning project in China. This has created opportunities for

construction equipment and materials suppliers to develop strategies for strengthening their positions in

China.

SAMPLE PAGES




Figure 40: Annual Marketing Budgets – Construction Equipment and Materials Suppliers (%),

2009−2013


Table 53: Annual Marketing Budgets – Other Construction Industry Suppliers (%), 2009−2013

Budgets 2009 2011 2012 2013

Less than US$250,000 70% 93% 75% 68%

US$250,000–US$1 million 10% 5% 11% 14%

US$1–US$10 million 13% 3% 13% 5%

US$10–US$50 million 5% 0% 0% 0%

More than US$50 million 2% 0% 2% 14%

Overall 100% 100% 100% 100%

N.B. Results may not equal 100% due to rounding


Figure 41: Annual Marketing Budgets – Other Construction Industry Suppliers (%), 2009−2013


Documents

Global Construction Industry Supplier Outlook Survey 2013 2014Global Construction Industry Supplier Outlook Survey 2013–2014: Market Trends, Marketing Spend and Sales Strategies