Category

Marketing Supply Chain

Marketing Building Products in 2021

Building materials warehouse

With the COVID-19 vaccine in wide circulation and schools and businesses beginning to open their doors again, building products marketers face a rapidly changing marketplace. Let’s explore five building products industry trends as our post-pandemic world begins to unfold.

Home office desk with laptop

Interiors are a Key Focus

According to the Residential Remodeling Index report released in late 2020, consumer remodeling projects of $1,000 or more had increased by 8% over the previous year. Consumers are spending an unprecedented amount of time indoors and are focused on making the best of it, adding comfort and utility to their existing space.1

Home offices remain a focal point for design investment with so-called dedicated “Zoom Rooms” a priority for busy professionals. Closed floor plans are also trending for their ability to offer privacy as are related building materials like solid-core wood doors that reduce noise. Escaping from work, homeowners are also creating more elaborate home exercise areas and even “unplug zones,” or rooms with no technology for total relaxation.

Previously neglected areas such as laundry rooms, foyers or utility rooms are being built out and cleaned up to add extra living space. Less clutter and a clean aesthetic mean that storage solutions are also gaining popularity.

When marketing building products, it’s important to continually scan the design blogs, reach out to audiences via surveys or formal market research, and work closely with product designers to meet the demand for materials that enhance comfort and interior living.

A man installing outdoor deck

Enjoying the Great Outdoors

The National Kitchen and Bath Association (NKBA) recently published a membership study that shows a 65% increase in overall outdoor living project interest, with 60% of respondents planning to upgrade existing spaces and 54% looking into patio/deck projects. Just as consumers seek to expand their interiors, they also want to escape occasionally from life inside.2

Besides garden materials, swimming pools and outdoor kitchens, hybrid spaces where indoors meets outdoors—such as a dining area that features openable screens or an outdoor home office area with Wi-Fi and sun shading—are also driving sales of building materials. The NKBA study even cites a trend in outdoor showers, particularly in upscale resort communities in sunbelt regions. Larger windows are another popular design enhancement as homeowners seek to bring in the outdoors.

Finally, people are using their yards more frequently for yoga and exercise versus simply entertaining or family space. This trend bodes well when marketing building products like fencing, gates, walls and screens. Even marketers who aren’t directly involved in outdoor living brands—such as lighting or door manufacturers—can leverage these building products industry trends with items that offer related benefits.

Male shopper looking at a floor sample

A Material Difference

The good news for building products companies is that all this home improvement requires a wide array of materials. “Easy care” materials like quartz, metal and glass are popular indoor choices because they offer simple sanitation and maintenance. Likewise, “cozy feel” products like rustic woods, brick pavers, and even repurposed barn doors used indoors, help to make homes more comfortable and calming.

With such a range of materials being sought after for interior and exterior remodeling applications, building products marketers have more possibilities to cross-sell, develop new product ideas or provide less-costly alternatives to expensive materials.

A young couple looking at flooring samples

The New Buyer’s Journey

Last year’s pandemic will certainly impact the building materials industry outlook in 2021. While brand differentiation will always be critical, content marketing continues to deliver customers. How-to articles and videos, look books, buying guides and online advice forums are in demand by DIYers working on various remodeling projects.

In-store retail displays are more critical than ever. Today, these displays focus less on building awareness and more on closing the sale. That’s because most consumers will have completed all their product research before heading to the retailer, versus starting there and expanding their search afterward.

Likewise, sample kits that were previously delivered by a salesperson are now directly shipped to consumers for individual evaluation. It’s important that all sample kit packaging convey safety and sterility as at-home consumers are still taking precautions. These changes in the buying process offer new opportunities to reach customers and build familiarity with their products in non-traditional ways.

A person ideating marketing for building products

Marketing’s Changing Role

As the pandemic deepened in 2020, marketing building products began to evolve in unpredictable ways—particularly the role of the marketer. More projects were added. More collaboration was expected with other areas in the company including R&D, distribution and new product development. Budgets may have been put on hold. And c-level leadership asked tough questions about emerging building materials industry trends that could potentially impact revenue.

In 2021, these new roles are already firmly in place for marketing professionals who are now charged with brand building, sales support, retail promotion, supervision of the marketing supply chain, hiring new team members, market research, and the list goes on. Unlike specialists in consumer packaged goods companies, this industry demands generalists who can wear many hats and think beyond traditional marketing channels as the quarantine winds down.

Of course, multitasking in new ways can affect productivity and creativity, not to mention job satisfaction. Forward-thinking building products marketers understand the critical role played by external partners who can keep them focused on the priority tasks.

In a rapidly changing retail environment, NVISION is always ready to help building materials brands elevate their marketing and respond quickly to new trends and challenges. Our deep understanding of today’s marketplace gives you an edge in strategizing and executing your marketing plan for building materials.

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Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

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The Top Building Materials Trends for 2019

The 2019 NAHB International Builders Show is around the corner and NVISION is gearing up to be there!

S&P Global recently released its Building Materials Industry Top Trends 2019, highlighting some of the key trends, takeaways, and forecasts the building materials industry will be keeping its eye on this year, and especially at IBS 2019.

Based on the trends report, here are our three key takeaways that all building materials industry leaders should know!

steel rods - building materials

Commodity Costs Will Continue to Grow

As the report points out, commodity costs for the building industry in North America rose in 2018 for several reasons, including decreasing unemployment, new tariffs, and increased demand. And S&P Global expects those same factors to continue to drive commodity prices up in 2019.

“So far, most building materials companies have been able to offset the cost increases with higher pricing, but it remains to be seen if companies can continue to maintain higher prices in 2019,” the report says. With S&P Global predicting a 3 percent increase in building materials costs in 2019, the building materials industry will need to look at cutting costs and optimizing their supply chains to offset this increase in prices and maintain their margins without continuing to raise prices.

Increased Prices Could Slow the Building Materials Recovery

As the report states, low inventory, higher home prices, and higher interest rates may be pushing marginally qualified homebuyers out of the North American market. This, S&P Global says, could bring a halt to the building materials recovery. “Existing home sales (a big driver of repair and remodel activity) could slow if values remain high and available inventory low,” the report claims. With fewer pre-existing homes being purchased, fewer old houses will be getting remodeled and repaired by new homeowners, and that means less business for building materials companies.

With building materials companies competing for homeowners with fewer dollars to spend – or with new construction townhomes that don’t need remodeling – they will need to find other ways to protect their margins, including finding ways to cut costs and compete on the customer experience with enhanced agility and responsiveness.

home building site

The Building Materials Market is Healthy, But with Growing Risk

When it comes to the numbers, the S&P Global report predicts modest growth in the North American building materials market. “We expect 2.3 percent real GDP growth, 3.6 percent unemployment, and 1.3 million housing starts. We further expect mid-single-digit growth in repair and remodeling activity, and only 2.8 percent growth in nonresidential construction,” the report states.

As a result, S&P Global is predicting another year of improved sales and earnings for building materials companies. But, the report says, “with much less growth than in 2016 and 2017.”  What’s more, due to the affordability and availability issues of new homes mentioned above, S&P Global warns that housing starts could actually retreat slightly in 2019. To combat this problem, many builders will “attempt to address this by offering more value-based entry-level housing,” which will present an enormous opportunity to building materials companies who are able – thanks to a nimble, efficient supply chain – to offer reduced prices on materials and faster delivery timelines.

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The 2019 NAHB International Builders Show promises to be one to remember. With these trends in mind, building materials companies will want to be on the lookout for experienced partners who can help them cut costs and better optimize their supply chain management in order to capitalize on this shifting market.

NVISION will be there, and we hope to see you!

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Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

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How Marketing and Procurement Can Work Together to Improve Revenue

There is no responsibility more important to marketing leaders than driving revenue. This can be done in two primary ways: growing existing revenue streams by acquiring new customers and improving customer retention, or by improving profit margins by effectively limiting costs. Nearly all marketers are focused on the former: “How do I win and retain more business?” But as Jon Smith of Marketing Week explains, there is another, even smarter way.

Procurement has a major role to play in managing revenue and marketing costs. So, how can marketing and procurement work together to improve revenue? We’re glad you asked!

people in the meeting room

Strategic Alignment for Procurement and Marketing

The name of the game for marketers today is accountability. Whether it’s in the form of revenue attribution, ROI, or highly granular cost analysis, new technology has made KPIs an even bigger part of marketers’ lives than ever before. As Worldwide Business Research Digital reports, “marketing teams are being held increasingly accountable for ROI.” Of course, for procurement teams, this level of accountability is nothing new. Cost reduction, optimization, and business process outsourcing (BPO) have been their primary job roles forever. Which is why aligning the goals of your marketing and procurement teams is so important.

Thanks to BPO, procurement can offer powerful solutions to marketing’s biggest problems. Solutions around time-to-market, brand control, cost reduction, and responsiveness are all under the purview of procurement but matter immensely to marketing as well. That’s likely why, according to WBR Digital, 51% of companies rely on BPO for marketing execution, especially around print production. By recognizing this natural synergy, and formalizing the alignment of their goals, procurement can help marketing departments do more with less.

Why BPO for Marketing Procurement?

Optimization can only follow where visibility exists. That’s why your marketing and/or procurement teams should always be looking for opportunities to achieve greater efficiency, optimization, and cost reduction through BPO. This visibility opens the door to more profitable outcomes. With reliable, granular information about marketing costs, delivery timelines, and critical areas to improve these figures, marketing can not only make more accurate predictions and plan for success, but can better understand – and subsequently optimize – how they maintain brand control, guarantee quality, and keep production velocity running smoothly.

As Smith says, it’s a “win-win” for marketing. With BPO carried out by marketing execution experts, your marketing team can focus on improving their customer experience and sales results, and leave the optimization to trusted partners.

meeting in the conference room

Marketing Execution and Print Procurement

According to WBR Digital, the majority of businesses already agree that they reap greater benefits from managing their print procurement externally. 58% of those surveyed believe that their supply chain and marketing execution partners do a better, more efficient, cost-effective job with print procurement for marketing materials. In fact, they identified the top 4 reasons why they prefer to outsource their print procurement to partners:

  1. Cost Reduction
  2. Improved time-to-market versus competition
  3. Better ROI
  4. Stronger brand and quality control

These are powerful benefits to marketers, made possible by outsourcing their print procurement.

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Procurement has a major role to play in managing revenue and marketing costs. By outsourcing it to a trusted partner, your business can enjoy the benefits of greater visibility, optimization, and success. Whether your marketing department measures success by ROI, cost reduction, or overall revenue, understanding the value of aligning your marketing and procurement goals, and the insights BPO can deliver, is a sure-fire way to increase your odds of hitting your annual goals.

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Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

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Five Tips for Choosing the Right Promotional Marketing Distributor

As competition continues to grow in every industry, it’s becoming more and more important for brands to be able to offer their customers and prospects a truly superior, personalized experience. That’s according to the Advertising Specialty Institute, who explains that to really impress your customers with promotional items, it’s absolutely critical to choose a distributor that offers the best service. Your distributor enables your business and their skill and service reflect upon your brand. That’s why ASI has identified five key qualities to look for in a partner.

Let’s take a look!

Low Prices

At the end of the day, nothing talks like money. And whether that’s costs, ROI, or revenue, it’s important to choose a distributor that offers highly competitive pricing for the production and delivery of promotional items. “Rather than slash your profit margins for the sake of winning a sale,” ASI explains, brands should work with a partner to secure affordable, consistent costs from the very beginning. That way, you’ll protect your margins, you’ll be able to save your customers money, and you’ll be able to capitalize on every promotional opportunity without breaking your budget.

Responsiveness and Flexibility

Customer demands are changing faster than ever, and it’s critical to work with a distributor who can respond with speed, agility, and flexibility. Whether you want to capitalize on a rapidly developing promotion (one centered around an event, for example) or just seize the latest trend while it’s still hot (fidget spinners, anyone?), your partner should specialize in fast turnarounds, quick changes, and ultra-responsiveness via a highly optimized supply chain. Don’t just meet your deadlines; exceed them.

man and woman looking at print samples

Attention to Quality

Promotional products may be inexpensive, but that doesn’t mean they can be low-quality. When you place your brand’s name and logo on a promotional giveaway, that product continues to represent your company in the mind of the recipient for weeks and months to come. Each time they use that bottle opener or thumb drive or shopping bag, they will think of you. If that product is low-quality or falls apart…well, that’s the level of quality they’ll associate with your brand.

It’s critically important to partner with a distributor who not only has a proven track-record of delivering high-quality products, but who maintains strict quality control practices as part of their workflow.

Past Reputation

It’s always wise to check any potential distributor’s previous history with customers. In this case, you want to choose one with a very high customer satisfaction rate and with plenty of positive testimonials. If a potential partner comes highly recommended, it generally means that previous customers have been happy with their services and products. Recommendations and testimonials are the ultimate receipt of satisfaction, so steer clear of anyone that can’t demonstrate a long list of happy customers.

Exceptional Customer Service

Customer service is now a core competency for any business worth its salt, and your promotional marketing partner should be no exception. The distributor of your choice should be quick to respond to inquiries and concerns, and should provide you with realistic, accurate timelines for things like production, delivery, and if necessary, returns. Your partner should value your business, because your business is their business. Don’t settle for anything less.

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE