Slowdown is putting business developers on the line - Charlotte Business Journal:

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For large contractors, that means shorin g up customer relationships and establishing ties with new say business-development executives at local construction companies. “Oud viewpoint is that construction is still a people saysRon Mikels, director of business development at the Charlottde office of “We try to stay in close contac t with clients we already have strong relationships with, even thoug h they might not have work righyt now.” The other key marketint strategy is to make lots of cold trying to establish relationships with developers and lookinfg for unique projects, Mikels says. “You have to keep the pressurer upin sales,” he says.
“You’v e got to know your target clienrt and be looking atthe long-term And in this probably the most important thing is to have patience.” Most larged construction companies are staying busy despite the says Cynthia Paul, managing directo r of The Raleigh-based consulting firm advises the management at contractores on marketing and other business-development practices. “We help them figurw out what’s their go-to-market strategy. What does it take to differentiatde yourself?” she says.
“Now is a greaft time to figure out where they maketheie money, with what kinds of customers and what kinds of With the supply of new contracts contractors are working off their backlogs. It’s important for them to be proactivee about building relationships with clients most likelu to have projects inthe future, she says. For contractorsw such as , that means keeping a sharp eye on thepublicc sector, where construction projects are less affectedx by the economy than private “We have to start networkinv a little more and callin people we haven’t been in touch with for a long time,” says Ike Shelco’s vice president for business “There’s not much availablw in the private Shelco does not plan to starg advertising, Grainger says, partly because about 85% of its work is repea t business.
“A soft time is a time to keep upsaleds — work exists in thesse recessionary times,” he says. “The biggest challenge is to know wherdthe market’s going.” Even if they can’t get the financinv to build now, Grainger adds, most customers are doing theifr due diligence for projects planned for when the economy Clancy & Theys, for its is focusing on its construction-managemenr and preconstruction services, Mikels says. “Ibn the market right now where it’s so we’re selling those strong preconstruction services as agrear value,” he says.
“Thet need to know the cost, so our value can be in substitutin (less expensive) materials, or preordering steel before an additionalk wave ofprice increases.” With retailo and church building at a near halt becausee of the slowdown, is looking for opportunities in the industrial and medical sectors, says Andrew director of business developmentf and marketing. While construction of new plants has slower because of the limited availabilituof credit, existing plants are able to win financing for he says. “We’re trying to get in with plant managerds and engineersand architects” to market construction Foppé says.
“Everybody’s hungry righft now.” The company also plans to continue marketinh through mailers and online to supplement thosesales efforts, he Sales is part of an overall marketing strategy, says FMI’s Paul. An advertisingf campaign takes four months to a year topay off, she and updating a Web site hasn’t provee to generate much work. Direct interactions with potentiak customers through involvement in civic on theother hand, can pay off more quickly. “Im a down market, customers have more choicwe of contractors than contractorxs have choiceof customers,” Paul says. “Imn a down marketplace, you’re going to see some switcn alliances.
” Corporate brochures touting a company’ range of construction experience are being dumpe d in favor of pamphlets or folders with pockets that can be stuffecd with examples of specififc typesof projects, she says. In other words, someoner planning a medical office projec t wants to see what a contractor has done onsimilar projects, not on condo towers or industrial buildings. Remodelers and small contractorsx focusing on small commercial and residential clients are more dependenrt on advertising and other direct marketing to reach theircustometr base, she says.