The Prospecting Professor: Target Market: Construction Industry Executives

In 2005, the US construction industry will invest more than $1 trillion in residential, commercial and public works projects. Estimates for 2006 are $1.1 trillion...for 2007, $1.2 trillion. So says FMI, a management and investment banking consultancy in the construction industry.

Of course, the "US construction industry" is not a homogeneous segment. Within this diverse group are subsets, e.g. contractors, construction materials, manufacturers & suppliers, owners, architects, engineers, residential building supply, etc.

To become much more knowledgeable about each of these specific sub-groups, think of the hundreds of trade associations that are linked to each sector...from the American Architectural Manufacturers Association, www.aamanet.org, to the Women Construction Owners and Executives, USA, www.wcoeusa.org, and all the other trade associations in-between. Many of the associations have local chapters, where associate memberships are encouraged. Financial advisors who want to penetrate deep within these industry segments are encouraged to join.

Trends in the Construction Industry for 2006

Significant shortages of manpower and materials will put a strain on residential construction, as well as the entire industry.
200,000 New Orleans homes may need to be replaced in the wake of Hurricane Katrina.
Procurement practices may also change dramatically because of price hikes and instability.
Low price may not be the determining factor for selecting a contractor, supplier or vendor. Capacity, responsiveness, timeliness, and level of trust will become much higher value than actual price.
One expert projects that the strongest growth lies in residential, education, retail, office and health care sectors. (Isn't that everything?)

The sanguine future is in stark contrast to the down years of 2001 through 2003. In the coming years, the growth will fill the backlog of work and improve the operating margins for many in the industry.

For financial advisors who want to target construction industry executives, the real challenge will be getting "face-time" with them. Given their very busy schedules, you will most likely need to leave the office and meet with them at their office, work-site, trade show, industry convention, etc.

$3,000,000,000,000+ dollars may mean that your pro-active marketing outreach efforts will be worthwhile.