Focus On:  The Construction Industry
Making The Tough Sell

     As interest rates continue to favor home buyers and commercial enterprises continue their expansion, the construction industry has found itself in the grips of an interesting, if not unsettling, quandary. With such an influx of building projects, more and more general and sub-contractors are finding that while work may be plenty, the manpower to commit to and complete a job might be lacking. According to industry experts, the problem only will worsen with time.

The Recognition Factor
     The No. 1 problem facing construction companies today is the lack of skilled laborers. Increasingly, the ability to lure and keep a skilled, stable workforce is becoming the hot commodity topic for the industry. By culling statistics showing that in less than a decade, every profession that comprises the industry will be faced with a labor shortage, a savvy construction business executive might be able to use that information as a springboard into a discussion about how an incentive program can be beneficial to his or her enterprise.
     "If promotional products distributors could help contractors realize how important image is to securing profitable jobs and repeat customers, that is key," says George Hedley, owner of Newport Beach, Calif.-based HardHat Seminars and a general contractor. "Contractors don't realize how big image is. It's a hard sell, though. These guys work hard; they're busy. They never have time. Distributors send them stuff, and they throw it in the trash. Contractors don't get it. However, a distributor should be persistent, get an appointment with these guys and show them how cheap it is to do it right."
     Hedley contends that part of image building should encompass employees. He notes that most industry employees who enjoy working at their companies do so because of the recognition and appreciation they feel is part of the job.
     "The goal of any program should be to recognize, not 'incentive-ize'," Hedley adds. "You set some goals and achievement, and you recognize the performers. You could have an employee, foreman, superintendent, administrative person or accounting person-of-the-month award. It depends on how big a company is. However, it has to tie in with a company's purpose and mission. Our mission is repeat customers, and whoever creates the best project that turns into a repeat customer wins the hard-hat or eagle award. As an employer, I've done five-year awards. If you work for the company five years, you get a gold watch. The key is recognition. You try to give everybody something, but it needs to be for a reason."
     Keep in mind that employee recognition programs do not need to be big-ticket items. Adding a bit of uniformity to the work crews can be a boost to people's esteem as well as a way for a company to present a professional, upscale image to the general public.
     "Typically, the construction industry has the image of the big Bubba working out there," says Chuck Kiser, direct marketing specialist for Cynthiana, Ky.-based American Custom Safety, a provider of specialty construction promotional items. "Today, industry trade associations and companies want to create a positive image for the work force, indicating that there are a lot of good jobs out there that are available."
     According to Hedley, one way to boost the image of a construction site is to ensure all the workers have a unified look. He accomplishes this simply by purchasing T-shirts with his company's logo screenprinted on them for the hourly field employees, while superintendents who no longer do the manual labor get embroidered golf shirts.
     "We give everybody five or 10 T-shirts, whatever it takes," he adds. "Then, you also can give everybody a baseball cap to match. Everybody looks really sharp that way. Also, give them good merchandise and make them look good. That will set you apart."
     One hint offered to distributors by Mike Bell, owner of Woodrow Engineering Co., a manufacturer of promotional tools for construction trades, is to know the niche.
     "The distributors need to understand the business and the industry in general," he notes. "That is good, but if they know more about the particular company's fit in the industry that is even more helpful. Ultimately, you have to have a relationship; that is what is important. A distributor who truly wants to help a business grow is key."

Public Image
     As mentioned, construction trades have been in a labor pinch that experts predict only will worsen as time passes. Thus, many trade organizations have decided that now is the time to engage in an awareness campaign that will help to promote the positive aspects of the industry. While many high schools and trade schools are actively encouraging and training students for construction-related jobs, Washington D.C.-based Associated General Contractors of America decided that there needed to be a more concerted effort to change the industry's overall image.
     The AGC, in cooperation with Scholastic, Inc., created Build Up!, a long-term scholarly approach to promoting construction trades geared toward fifth grade students.
     "We chose fifth grade because they were old enough and had the mobile skills to do a lot of the activities we were proposing," says Christi Reimer, AGC's director of training services. "They also are the mid-range of the second post-war baby boom. Fifteen percent of our population I made up of kids ages five to 15, and 10-year-olds are the midpoint."
     The idea of Build Up! is that local contractors can purchase the kits and distribute them to classrooms of their choice. In some instances, AGC will try to match a local contractor with teachers who request the program.
     "Our industry is paying for the program," Reimer adds. "We aren't selling anything. We just are educating kids about construction, and we have covered a large assortments of crafts as well as the professional end."
     By uniting contractors with students, AGC hopes that more construction workers will share the positive aspects of their jobs with students, thereby removing some of the old stigmas associated with the industry. Additionally, the contractors have the option of providing rewards to students who successfully complete the program.
     "The contractors can purchase safety hard hats made for the kids since we are trying to educate them about construction safety," Reimer says. "They also can provide a completion certificate or low-priced key chains."
     While the AGC agrees that a program such as Build Up! may not solve all of the pending problems for the industry, Reimer acknowledges the effort has had one positive consequence: an impressive public image.
     "Everybody is looking at the issue of image," she explains. I had a marketer ask me about branding, and this program definitely has had an impact. That wasn't why we started Build Up!, but it certainly is a nice benefit that makes us look good to the public."

The Public Eye
     While school programs appeal to the philanthropic quality in people, contractors have a tough time seeing how their image needs improvement when they currently have more work available than they can handle. Most, if any, promotional campaigns start when business gets slow. For HardHat Seminars' Hedley, the wait-and-see mentality means that many construction companies are missing opportunities to get their names out there. He says that association golf tournaments; monthly, quarterly and annual meeting for various groups; and even trade shows offer a multitude of opportunities for self-promotion and the need for an observant distributor.
     One of the most important questions a distributor can ask a contractor is: How many good clients do you really have? More often than not, the answer will be 20 or less. Thus, when dealing in promotions, a contractor has the option of purchasing quality merchandise that will make his or her company stand out.
     "Are you going to use a plumber just because he gave you a notepad? No," Hedley observes. "Yet, if you pick your top 30 customers and give them something of value, they will remember you. Give them a nice $2 pen, maybe a Mont Blanc look-a-like. That is what I try to do as a contractor.
     "Marketing campaigns are different," he continues. "I want to mail out something that sets me apart and makes people remember me. I'm not going to send a notepad. I'm going to send an orange hammer with my name on it. I send out $14 hard hats to clients I really want because they will remember a hard hat."
     Most distributors readily agree that having a unique and creative approach is important to standing out in such a large industry; however, another challenge with making such presentations to contractors comes in consistency. A distributor may recognize that a one-time promotional enterprise rarely will make any impact. The tough sell is getting a contractor to realize it.
     "Contractors want instant results," Hedley notes. "Distributors have to insist that a program is a one-year minimum. Don't let contractors waste their time. Consistency is the hard sell with contractors because they would rather go bid another job. Eighty percent of contractors think price is everything. That's their mentality. Distributors must prove how an improved image can generate more repeat and profitable business."
     Another effective vehicle for generating publicity about the construction industry is the Internet. Sylvain Cote, president of Yorktown Heights, N.Y.-based ConAd Marketing Consultants and owner of a construction company, encourages contractors to use the Web to market their business.
     "It's tough right now because people are reluctant to get bigger because they can't find the right help," he says. "However, now is the right time to market and position a company so people will know its name. Our website totally changed our business. The phone rings all the time, and they are quality job leads."
     Cote also uses direct mail to help connect people to his business and the Web.
     "As soon as a job is completed in one neighborhood, we send a direct mail to the neighbors and encourage them to look at our website for the complete job with pictures," he explains. "We send a postcard with a headline to pique their curiosity such as: "One of your neighbors just received a facelift." To see it, we direct them to the website."
     By uniting experience of successful promotions with knowledge of the industry trades, good distributors can find ways to prove the value of promotional products and enterprises to contractors.