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Market Deep Dive: Construction

One of the top headlines of 2021 in the promotional products industry was the disruption of the global supply chain and its effect on suppliers and distributors, but according to the latest industry reports, the market pressures may have reached their peak in Q1 2022, which is especially great news for the construction industry.

Despite dealing with worldwide labor shortages, factory closures, port congestion and inflation last year, construction managed to recover nicely from the COVID-related downswings of 2020 with a year-over-year growth of over 9% in 2021. It shows no signs of slowing down, either, with growth projections expecting the global construction market to reach $16.6 trillion by 2025.

Construction is one of the fastest growing industries in the U.S., which is a promising sight for distributors looking to provide promotional products to construction companies, engineers and small businesses (contractors, roofers, tilers, painters, plumbers, electricians, etc.). Let’s take a look as some of the most valuable promo to pitch your construction clients:

  • Equipment – Most notably, branded hardhats and vests will give companies added brand exposure while on the job. This can also extend to more detailed personal items like rulers, pencils and clipboards.
  • Apparel – Construction companies are looking to prioritize safe work sites with high-visibility vests and T-shirts, and polo shirts, sweatshirts and hats are effective pieces of merchandise that will increase brand exposure in their communities.
  • Stationary – Inspectors and managers are always jotting down precise measurements and other notes, so writing utensils and notepads are always in high demand.
  • Giveaways – Handouts for trade shows, charity functions and other community events will leave a lasting impression with end-users. You can accomplish these goals by putting a themed twist on popular products like mugs, stress relievers and pens.
  • Bundles – Don’t forget that you can look for kits or even bundle similar items to increase order sizes. Themed bundles for home improvement and DIY projects (tools, notebooks) and safety initiatives (safety glasses, hard hats, high-visibility shirts/vests) are a big hit with customers, and general gift baskets stuffed with promo are great for charity events and other giveaways.

When to Reach Out to Prospects
Especially in seasonal climates where weather patterns severely hinder construction schedules and productivity, the construction market typically has a peak season and an off-peak season. Working within these cycles will be beneficial to your working relationship with these clients. Reach out to businesses when they are slow in the winter, as they’ll be more available and eager to gear up for the busy season. Conversely, they’ll be so busy in spring and summer (with a promo plan already in place) that you’re less likely to get business done during these times.

If you live in a warm or temperate climate, your strategy should be altered to a year-round approach. With a rolling schedule of projects throughout the year, it’s important to keep your lines of communication with these clients open so you’re ready to help them at the drop of a hat.

Questions to Ask
Here are a few things to ask potential partners when inquiring about their promo needs:

  • How do you currently market your business?
  • Do your employees wear uniforms or need high-visibility apparel?
  • Do you have company merchandise/an online store?
  • What are your goals for growth?
  • What incentives do you use for repeat business?
  • Do you currently use branded apparel or giveaways?
  • Do you have annual charity events to promote?

Checklist: Important Events to Consider
Be sure to ask prospects what promos they need for these events:

  • Ribbon-cutting and groundbreaking ceremonies
  • Trade shows and conventions
  • Charity outings
  • Community projects

Next Steps

What are some insights you can share about the manufacturing and construction markets? Let us know!

[Sources]
“Global Construction Market Expected to Reach $16.6 Trillion by 2025, Growing at a CAGR of 7%.” March 9, 2021. Business Wire.

“Construction Industry Promotional Products.” July 19, 2021. Leone Marketing Solutions.

 

About ASI

Advertising Specialty Institute, ASI, is the leading membership organization helping screen printers, embroiderers, sublimation businesses, print shops, graphics pros and solo entrepreneurs sell promotional products. ASI provides technology, support, education, marketing and other tools to help members find customers, source logoed items and swag, network with wholesale suppliers, launch e-commerce websites and more. Visit joinasi.com to explore what ASI has to offer.

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