Building Products Market: 4 Things to Expect in 2019
- New home construction will flatten. After a dramatic recovery following the housing market crash of 2008, U.S. housing starts are expected to flatten in 2019 as millennials delay the purchase of a first home longer than any generation in U.S. history.
- Housing prices will continue to rise. As the construction of new homes slows, housing demand is expected to outpace new starts, leading to a continued increase in housing prices. Many housing-market analysts are already sounding the alarm that another housing market crash could be on the horizon, but in the meantime, builders and suppliers can expect to continue realizing comfortable margins, even as volume slows.
- Industry growth will pivot to focus more on industrial development than new housing starts. Rising home prices and interest rates have combined to make homes less affordable, even as demand had already stalled. These factors have led to low confidence among home builders, and building-products suppliers should expect industry focus to shift to industrial projects as long as the business outlook remains positive.
- Cornering the marketing on non-commodity building products will take a nuanced understanding of the new industry buyer—and an ability to reach them. As the market shifts and developers focus on industrial projects, building-products suppliers and manufacturers have the opportunity to increase their business when it comes to IIoT products and others designed for connected facilities. Educating developers, engineers, and builders early in the buying cycle is necessary for selling products into these facilities while the projects are still being scoped. Reaching all members of the buying committee isn’t possible with CRM platforms that only reach the known contacts within key accounts. Alongside existing CRM systems, account-based marketing (ABM) helps B2B sellers reach all decision makers, even those who remain anonymous, with targeted, relevant messages. Learn more.