Current developments, challenges and opportunities in the construction industry

Developments​

The construction industry is at a crossroads with the main topics digitization, decarbonization and skills shortage. The willingness to invest is high, as is the demand. However, this is slowed down by the sharp rise in raw material prices and the lack of materials.​

Construction companies are losing orders due to the increased energy and material costs and higher interest rates. New residential construction is particularly affected. The president of the main association of the German construction industry is now making a gloomy forecast for the industry’s sales for 2023 and subsequent years.​

Challenges​

The high prices for energy and materials and the rise in interest rates are impacting demand for residential construction and are causing problems for the construction industry. Active sales must be designed after many years of skimming. The employees must be “led” again, and fact-based sales strategies must be developed and implemented.

Opportunities

For Salesforce, the opportunity lies in the fact that companies have to prepare for the future and position themselves competitively. Anyone who misses the connection now will have a hard time in the future. To do this, they need data-driven decisions.

Would you like to learn more about the construction industry?

Use our online seminars:
https://www.ibs-technology.com/online-seminare/​

Contact

Simone
Email: sweidner@ibs-technology.com
Phone: +49 152 01708920

Mirja​
Email: mlange@ibs-technology.com
Phone: +49 152 03838154

What does sales mean in the construction industry?

What is special about sales in the construction industry (also known as construction sales) is that at the beginning you do not know who the buying customer will be. Therefore, classic opportunity management does not work in this industry.

Everything revolves around a building object, e.g. building a new office or renovating a hotel. This is financed, planned, built, rented, sold. The sales circle can last for years.

In the course of this creation process, various project participants make a selection of products and providers. The goal in property sales is to place your own products in tenders and thus ensure that they are actually used.

Object sales is a multi-stage sales process in which the customer who ultimately buys is not known for a long time. This retailer or processor is often not the decision maker for the product to be used. This is often determined via a tender that the architect, for example, prepares. Instead, there are a large number of people involved in the construction project who play a role in the product selection.

Until the order is placed by the trade or a processor, the object sales department is active and in exchange with those involved. The manufacturers receive several inquiries from processors or trade for a project. In the best case, a loyal partner will be commissioned with the delivery or service and the order will be won.

For more information read the article here
https://www.ibs-technology.com/en/thema/what-requirements-does-a-crm-need-in-the-construction-and-building-material-industry/

The importance of relaxing

Is relaxation at the bottom of your list of priorities? It is for many people. To boost your health and wellness, you’ll need to value relaxation more and carve out time to unwind amidst your busy schedule.

You might try jumping off the daily treadmill for a few hours and taking a thoughtful look at your life. Do you value all the elements of your current routine? What do you really enjoy doing, yet have little time to do? Whether it’s having a cup of coffee with a friend, sitting still in a quiet session of meditation, or working on a long-neglected art project, be sure to schedule your relaxation times. They are every bit as important as the other to-do’s on your weekly calendar. View them as appointments that you won’t cancel unless an emergency arises.

Research shows that relaxation keeps your heart healthier, cuts stress, reduces muscle tension, improves brain function and memory, and helps you avoid depression, anxiety, and obesity. It boosts your immune system and helps alleviate the symptoms of many medical and psychological disorders.

Relaxing is important!

The importance of relaxing

Is relaxation at the bottom of your list of priorities? It is for many people. To boost your health and wellness, you’ll need to value relaxation more and carve out time to unwind amidst your busy schedule.

You might try jumping off the daily treadmill for a few hours and taking a thoughtful look at your life. Do you value all the elements of your current routine? What do you really enjoy doing, yet have little time to do? Whether it’s having a cup of coffee with a friend, sitting still in a quiet session of meditation, or working on a long-neglected art project, be sure to schedule your relaxation times. They are every bit as important as the other to-do’s on your weekly calendar. View them as appointments that you won’t cancel unless an emergency arises.

Research shows that relaxation keeps your heart healthier, cuts stress, reduces muscle tension, improves brain function and memory, and helps you avoid depression, anxiety, and obesity. It boosts your immune system and helps alleviate the symptoms of many medical and psychological disorders.

Relaxing is important!

What are the stakeholders in the construction industry?

Depending on the type of construction project, the parties involved also change, e.g. in a new hospital building (from the public sector, the hospital operator, specialists in the hospital to the architects, dealers, house and yard processors,…) there are other stakeholders than in an office building ( , in which investors, project developers, tenants, dealers, processors,… play a role).
In a project that the client is building for his own use, the motives of those involved are different than in an investor project that is to be marketed.
There are a large number of project participants who, depending on the trade, play a decisive role for the construction suppliers.
The participants can be summarized in groups:

• Planners (e.g. architects, specialist planners, interior designers)
• Investors (e.g. public builders e.g. states and municipalities, project developers)
• managers (e.g. project managers)
• Executors (e.g. trade, general contractor)
• Users (e.g. staff, customers, facility management)
• trade and wholesale

In order to successfully win orders in the project business, it is important for sales to know those involved in the project and their motives for buying.

Read more about the project participants here:

https://objectvertrieb.com/bauobjekt-bearbeitung-who-are-the-most-important-project-participants-and-their-motives-part-1/

Who are the customers of the construction suppliers? 

In the industry, a distinction is made between buying and non-buying customers. There are several options for buyers:

1. The manufacturer or construction supplier sells directly to the processor (construction company, craftsman, installer, general contractor)
2. The manufacturer sells to the specialist trade, which sells to the processor. (two-stage)
3. The manufacturer sells to the wholesaler, who sells to the specialist trade and the latter to the processor (three stages)

The non-buying customers are the influencers and decision makers that also need to be addressed. These include builders, investors, architects, planners/specialist planners, other multipliers and stakeholders.

Do you have any questions? Our industry expert Mirja Lange will be happy to answer

m.lange@ibs-technology.com

What is a construction project?

• A construction project, also known as a project or construction object, is a construction measure.
• There are new buildings, conversions, renovations etc.
• The construction project is often initiated, planned, applied for, approved, tendered and finally built over a period of several years.
• Depending on the point in time, different contact persons are involved.

What is a strategy for processing construction objects? More about this in our online seminar:

https://www.ibs-technology.com/thema/objektvertrieb4-0/

How does a construction project work?

The construction phases play a major role in property sales. Depending on the phase in the construction project, property sales (e.g. when preparing a tender) can play an active role and provide support. The decision for a product is sometimes already made in the first construction phases. The phases in the construction project are defined by the work phases of the architects and engineers. Baucore is based on the performance phases.

Overview of the service phases according to HOAI (fee structure for architects and engineers)

• LP1: basic assessment
• LP2: Preplanning
• LP3: Design planning
• LP4: Approval planning
• LP5: Implementation planning
• LP6: Preparation of the award
• LP7: Participation in the award
• LP8: Object supervision – construction supervision and documentation
• LP9: property management

Do you have any questions about property sales in the construction industry?
Our expert Simone Weidner has the answers:
s.weidner@ibs-technology.com

In which sectors does building project sales exist?? 

Building project sales are typical in the construction supply industry. These include above all the manufacturers of products for the construction, interior design and exterior design of buildings, trade but also service providers who are involved in the construction or management of buildings.

Products for shell construction, facades, roofs, walls or floor coverings, indoor sanitary products.

They are producers of concrete, glass, stone, bricks, fittings, construction chemicals, fire protection systems, insulation, floor coverings, tiles, lights and much more.

There is also the (specialist) wholesale trade or specialist trade that tries to get orders for construction projects.

The project sales supports architects in the planning and preparation of tenders, organizes samples, advises builders in the decision for suitable materials, searches for solutions for technical requirements in the construction projects with the specialist planners. Project sales can only sell indirectly here, because none of those involved will buy anything from them. But: here he can convince the decision-makers of his solutions and products and as soon as the products are placed in tenders, the chances that the trade and processors will use the products also increase.

Do you have questions about building project sales? Get in touch with our industry experts:

Simone Weidner
s.weidner@ibs-technology.com

Mirja Lange
m.lange@ibs-technology.com

How do you shape other people?

An inspiring short video to think about.

In a busy life, “Copi” is a father trying to teach his son “Paste” the right path. But… what is the right way?

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Time to relax!

Is relaxation at the bottom of your list of priorities? It is for many people. To boost your health and wellness, you’ll need to value relaxation more and carve out time to unwind amidst your busy schedule.

You might try jumping off the daily treadmill for a few hours and taking a thoughtful look at your life. Do you value all the elements of your current routine? What do you really enjoy doing, yet have little time to do? Whether it’s having a cup of coffee with a friend, sitting still in a quiet session of meditation, or working on a long-neglected art project, be sure to schedule your relaxation times. They are every bit as important as the other to-do’s on your weekly calendar. View them as appointments that you won’t cancel unless an emergency arises.

Research shows that relaxation keeps your heart healthier, cuts stress, reduces muscle tension, improves brain function and memory, and helps you avoid depression, anxiety, and obesity. It boosts your immune system and helps alleviate the symptoms of many medical and psychological disorders.

Relaxing is important!

What leads are there in the construction industry and where does the construction information come from?

In the construction industry there are not only the classic marketing leads, but also so-called project leads. The difference is that the classic marketing lead is always a person and the project lead in the construction industry is object information that is not necessarily assigned to an account.
These project leads can be generated from various sources. On the one hand, the personal network of sales plays a major role here. Other sources can be the website (e.g. provision of BIM information), trade fairs, inquiries and external data suppliers. External data suppliers make the search for suitable building objects easier. Possible providers can be:

• IBAU
• Building Radar
• Competitiononline
• DTAD
• Barbour ABI (UK)
• Dodge (US)
• …

Each country has its own provider. By integrating the project information into baucore (Salesforce native app), sales saves a lot of manual processes. The projects can thus be pursued in a targeted manner by the sales department.

More about the construction project leads in our on-demand online seminar with IBau:
https://www.ibs-technology.com/thema/bauinformationen/

or in our podcast with Paul Indinger from Building Radar
https://objektvertrieb.com/podcast-10-experteninterview-mit-paul-indinger-von-building-radar/

What happens with a tender?

For the tendering of construction work, architects and planners create tender documents (bills of quantities) based on the execution plans. The search is on for a suitable company to carry out the construction work.

The goal for manufacturers of building materials is to specify their products in the tender or in the specifications (LV) or at least to be listed as a lead product for which comparable alternatives are permitted. Thus, the sales department often works on the tender for the architect. In most cases, the manufacturer will not submit an offer, since the products are tendered including the processing, such as creating the shell with stones.

The manufacturer then receives price inquiries from retailers or processors as a result of the tender and is usually in competition with other products or companies.

For public builders, threshold values apply, at which national or EU-wide public tenders must be issued.

The restricted tender is a type of procedure for national, non-European tenders. The name “limited” already reveals that the client is only asking a limited number of companies to submit a bid. The restricted call for entries is available with and without a competition.

You can read here how manufacturers can place products in tenders:
https://objektvertrieb.com/wie-es-gelingent-produkte-haeufiger-in-ausfertigungen-zu-platzieren-teil-1/

What are the biggest sales challenges in the construction industry?

The biggest challenges include:
Finding out the most promising construction projects: A large amount of information on construction projects must be evaluated by the sales department. Which ones should he pursue and what should he spend his time on?

Complexity: Construction projects are complex and lengthy. It usually takes 2-3 years or longer for a construction project to be realised. And there are several accounts and their contacts for each building project. How should the discussions and information be organized so that the building project is always in view and is constantly being worked on? In property sales, a property consultant looks after around 100-250 projects at the same time, often even more. That depends on the complexity of the consultation. You quickly lose the overview.

Network: A network helps to gain access to decision-makers in construction projects. What are the relationships between those involved in the construction project? Are there preferred partners? Do the parties involved work with me or do they prefer competitors? If yes, which? In order to answer all these questions, you need a lot of experience and reliable data on construction projects that have already been completed.

Loyalty: Manufacturers need loyal partners in retail and among processors because they cannot submit bids themselves in the tenders. If the products are interchangeable, the processor who wins the bid can ultimately determine the product to be delivered. Depending on how good the cooperation is, the chances of getting an order increase or decrease.

Price war: Due to the tenders, the product manufacturers are often in a price war with competitors. In the case of comparable products in particular, retailers or processors also ask other market participants. If possible, competitive prices should be determined from partners in the trade or from the processors. Then efficient partners are sought who pass on the price advantages to the customer and win the tender with the product.

Baucore is the only industry solution for property sales: www.baucore.app

What is Baucore?

• baucore is the only industry solution for the construction and construction supply industry. With baucore, it is very easy to implement property sales digitally. Whether construction suppliers, manufacturers, dealers or other industry companies – baucore presents the sales channels holistically and optimizes and automates sales processes in an innovative way.
• baucore is based on Salesforce and is therefore embedded in all features provided by the Salesforce platform. From marketing automation, service processes, sales processes, B2B and B2C web shops, AI and also the integration of partners via your own portal. Thus, all subject areas of the entire customer journey are covered.
• With the baucore from IBS Technology, the sales process in object sales is mapped in the CRM with a focus on the construction phases. Simple traffic light representations guarantee that the sales department prioritizes the most promising construction projects. This saves time for research and evaluation of building information. baucore gives sales structure, provides tips and recommendations for action that help sales to successfully complete construction projects. This is particularly helpful for new employees in property sales and shortens the time for onboarding.
• baucore successfully asserted itself at the German Innovation Award and won the Innovation Prize 2021. Awarded in the “Excellence in Business to Business” class, many customers already trust in baucore.

This is the only industry solution: Baucore video

How does sales work in the construction industry?

Time spent in the field is valuable and should be used to build good customer relationships. In the construction industry, personal appointments are still the focus. Whether builders, architects, dealers or processors, the field service has to deal with all stakeholders in the property. This makes property sales very complex.

Due to mobile working and the large number of construction objects being processed, the sales force is dependent on being able to access the relevant information quickly and from anywhere. Baucore and SalesExt offer the sales force in the property business optimal solutions: Quick and easy use and an overview of all customers and properties are essential.

The processes in object processing are coordinated in such a way that the tedious input and updating of data for the user is minimized. In addition, the data can be enriched by external data suppliers such as ibau, etc., which significantly reduces the maintenance effort.

With baucore, the field service is automatically and actively supported at the right time with reminders and recommendations for action – without any resubmissions. The sales force always keeps an eye on the open tasks, goals, top customers and most important construction projects.
Baucore provides valuable information about those involved in the construction project.

Have I already worked successfully with those involved? Who are the most loyal partners? In this way, the field service can act strategically with the network in the construction project.

The digital support enables effective and successful construction project processing – very close to the customer.

You can find out here what the special features and requirements of a CRM are in the construction industry.

Read more here

Christmas Songs

The best Christmas carols to listen to and sing along to.

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Relax and enjoy the weekends during Christmas

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Baucore for sales management

The general overview of the construction projects in progress, combined with probabilities and the expected order volume for the coming months, is an important indicator for the sales management. The task is to achieve the set goals together with the sales team.

To provide strategic support where necessary, but also to control top projects themselves: To do this, the sales management must know what the sales department is doing for the processing of construction objects and be able to gain an insight into the processing status. It is just as important to identify and work on the strategically important customers and construction projects with the sales department. The sales staff should concentrate on the customers and construction projects where lucrative business is in prospect.

With the use of baucore, the sales department has less administrative work and better knowledge of the customers. This gives you the opportunity to spend fewer resources on entering data and more time on the actual sale.

For optimal sales management, baucore automatically delivers data that can be evaluated about the performance of sales employees and the achievement of goals. Individual parameters can be compiled in displays such as reports and dashboards. The Daily Dashboard always keeps the sales management up to date and provides analyzes for sales decisions.

Download our baucore white paper for more information
www.baucore.app/en

baucore for the management

Together with Salesforce, BauCore maps the entire sales and marketing process and also the connections in the building object. The results of won and lost projects are available as data replicas and offer the possibility of deriving KPIs of successful project processing for sales.

Baucore offers automated object monitoring and thus creates more sales-active time, which is reflected in the increase in the number of projects to be processed and also in the increase in win rates. This increases sales efficiency and also profitability.

Baucore offers a standard interface to external data suppliers such as iBau, DTAD and Building Radar. The leads can be imported and evaluated directly into the CRM. The sales capacities are only invested in construction projects with good profit opportunities and are therefore used efficiently.

In our online seminar “The construction industry – winners and losers at the same time” we have Lutz Hammer, Managing Director of Reckli GmbH, as a guest. Check it out here: https://www.ibs-technology.com/thema/die-baubranche-gewinner-verlierer-zugleich/

baucore for manufacturers

• Construction projects are lengthy from planning to implementation and there are a large number of people involved during the construction phases.
• For manufacturers in the construction industry, it is not only important to have the best possible customer care with regard to trade and processors, but also to actively support those involved in the construction projects in order to be successful.
• With the industry experts from IBS, manufacturers develop the right strategy with baucore for the different phases in the project business, starting with the selection of the most promising building project leads through to the evaluation of the submission result. Automated offer processes facilitate the processing of inquiries and the preparation of bills of quantities for advertisers.
• With baucore you identify your most loyal and successful partners and become more successful together in the network.
• Producers gain fans for their brand among processors through professional recommendation management. Partner programs deepen customer loyalty and create a common communication platform for the exchange of information on construction projects.
• IBS Technology has been advising manufacturers in the construction supply industry in multi-stage sales for more than 10 years. Our industry experts help to process construction objects efficiently and in a targeted manner
• So that you don’t miss anything else on the subject of object sales and CRM in the construction industry, subscribe to our newsletter
  https://www.ibs-technology.com/newsletter/

baucore for wholesaler

The wholesale trade often receives several requests from processors for a construction project. These must be clearly assigned to a construction project in order to keep track of the offers. Calculations are often made under high time pressure and requests must be answered quickly.

baucore simplifies the organization of offers around the construction project and keeps it clear. Automated offer processes make it easier to answer requests and process performance lists. All information about the construction project is quickly available and all communication is linked to it. Transparent and traceable.

Networks with manufacturers and processors are important in order to know the backgrounds of the construction projects and to be up to date. With baucore, the most successful and loyal partners are identified and they can be proactively recommended in a predefined process. This is how the trade develops its own success strategy for its projects.

Would you like to be invited to our events regularly? Then register now for the newsletter:
https://www.ibs-technology.com/newsletter/

Keywords für die Baubranche

Diese Begriffe werden speziell in der Baubranche verwendet:

HOAI, Architekt+Planer, Leistungsverzeichnis (LV), Submission, Vergabe, Ibau, Buildingradar, Barbour ABI (UK),

DTAD, GAEB, BIM, Mehrstufiger Vertrieb, Objektvertrieb, Bauvorhaben, Mehrere Angebote zu einem Objekt

Lade dir hier unseren Discovery Fragenkatalog speziell für die Baubranche herunter:

link zum pdf

baucore – die einzige Salesforce App für die Baubranche

Die baucore App bietet als einzige Branchenlösung die Möglichkeit, den Objektvertrieb genau so abzubilden, wie er in der Baubranche umgesetzt wird. Durch unsere Experten mit Branchenerfahrung sprechen wir die Sprache der Kunden und vermitteln ihnen Sicherheit.

IBS Technology berät seit mehr als 10 Jahren Kunden in der Baubranche und hat über 100 CRM Projekte realisiert.

Die Zusammenarbeit von Salesforce und baucore von IBS Technology erhöht die Abschlußwahrscheinlichkeit, da baucore als Branchenlösung einzigartig ist.

Lade dir hier unsere Präsentation AppExchange Partnership herunter