As the industry sees great shifts in 2024 from an economic and environmental perspective, marketers again need to adapt their focus in order to stay current and connect with the aspects that matter most to customers today.
2024 Key Trends
Key Trends Set to Transform Building Materials Marketing in 2024
In 2023, marketers in the building materials space were heavily focused on retaining and nurturing customers. From creating hyper-focused, customer-tailored messaging to building trust through influencers and tapping into the more sustainable side of the storytelling, brands were starting to connect with audiences in more personal, meaningful ways. Building on this work, as the industry sees great shifts in 2024 from an economic and environmental perspective, marketers again need to adapt their focus in order to stay current and connect with the aspects that matter most to customers today.
Let’s dive into what these changes are and how building materials marketers can continue to strengthen their customer interactions, internal teams, digital experiences and more to answer the need and drive even greater brand growth in 2024.
Customers are spending less on discretionary expenses.
With inflation weighing heavily on customers’ minds and budgets, what people spend their money on will continue to be a major consideration. Data from Statistics Canada shows a clear trend that discretionary spending has slowed in recent months, due to the rise in costs for essential items.? As a result, consumers are less likely to spend their money on more discretionary or optional renovation projects – especially DIY projects – because they simply can’t afford to take them on. Retail chains like Lowe’s and Home Depot have also noticed this trend, reducing their sales forecasts related to DIY materials.? The escalation in prices for materials and labour have introduced a sense of uncertainty and budget consciousness that even the most enthusiastic DIYers are struggling with.
> What can building materials marketers do?
Make your product so valuable, it becomes essential. When it comes to dealing with economic fluctuations, the key here is for building materials brands to focus on value. Whether it’s a lifetime guarantee, superior durability or energy efficiency, by leaning into the value of your products, you can start to position them as essential and cost effective in the long run. Creating content that speaks to those values through case studies, testimonials and certifications can showcase the incredible value a product holds, while providing proof that what these consumers are purchasing is a good investment.
Building and trade professionals are becoming more in demand.
For homeowners who are taking on updates or renovations, they seem to be generally stepping back from the actual DIY element of these projects, with many leaning on the pros to get the work done. Gen Z and Millennials are spending more time inside of their homes than last year, and while they want to make improvements to their space, they aren’t willing to do the work themselves.? Studies have shown that Millennial homeowners are less likely to take on DIY projects themselves and would prefer to hire professionals to do the job. When it comes to specific home improvement projects, just one in five Millennial homeowners said they would feel confident enough to tackle a drywall repair project or fan installation in their own home, less than one in three would feel confident enough to DIY an exterior painting project or light installation in their home and about half would feel confident enough to mount a TV or assemble furniture.? Plus, with people returning to work after COVID, many have less time to commit to home renovation projects.
> What can building materials marketers do?
Arm building professionals with greater product knowledge. This is an opportunity for building materials brands to educate trade professionals about key product elements, such as the installation processes, selection necessities and overall benefits of their products, so they can communicate that knowledge to the end customer. Contractors become trusted sources – from choosing the right building materials products to installation and care. Therefore, the more information building professionals know about your products, the greater the chance for those products to become the go-to solution for customers. Try hosting some product webinars or workshops so these professionals can learn about your products and have the opportunity to ask questions. Content including detailed guides and training sessions with industry associations can also help build product awareness and interest.
The cost of labour is rising, and productivity is falling.
The US has been named the most expensive country for construction.? Labour shortages, supply chain challenges and inflation are all causing an increase in the cost of labour. In addition, more team members are entering the industry from general trade programs, with lower-level skills, resulting in added time and costs to bring them up to speed. To combat this, these businesses are taking training into their own hands, creating education programs for their in-house teams to better manage costs and boost productivity.
> What can building materials marketers do?
Create educational tools. Building materials brands can play a crucial role in this education by providing much-needed product, installation and other training resources to help strengthen their knowledge base and bring this new workforce up to speed. This is a great opportunity to build relationships with construction, architectural and other professional firms and become a trusted advisor and resource for their budding workforce. By creating online tutorials, instructional guides and even hands-on workshops, you can differentiate yourself from the competition, offering the support that can help workers succeed in their role. Collaboration with industry experts and educational institutions can further this initiative, broadening your reach and strengthening your brand awareness. It also ensures proper installation of products, which is better at the end of the day for satisfied customers. So, certified-installer programs are a big-ticket item that people love.
Digital experience is helping building materials brands be memorable.
As the competition between building materials brands continues to grow, standing out from the crowd becomes more difficult. So, brands are creating memorable digital experiences to differentiate themselves. Sixty-six percent of users feel that a frustrating experience on a website hurts their opinion of the brand.? A well-designed website is often a user’s first point of contact, and holds the power to influence their perception and their purchasing decisions. From integrating chatbots to tracking to ecommerce, building materials brands are investing more time into their websites and digital experiences to better understand their customers.
> What can building materials marketers do?
View your website as a critical sales tool. Companies who are looking to enhance their website’s digital experience should first look at the overall design and functionality, to ensure it’s easy to navigate and has the content needed to solve a variety of pain points. Additionally, make sure your website is optimized for mobile and takes SEO into account for greater searchability and relevance.
AI is changing the building industry.
AI is changing the world in which we live and work. Even within the construction and building industry, AI is projected to grow significantly. According to Adroit Market Research, the global market for AI in construction in 2022 was estimated to be worth USD 1.3 billion, and by 2030, it is anticipated to grow to USD 13.5 billion.? From improving building designs to jobsite safety, builders, designers, architects and contractors are all using AI technology in some capacity. And that’s just the beginning. AI technology is now expanding in new ways to connect with users, including identifying their pain points.
> What can building materials marketers do?
Use AI technology to your advantage. The first step is to make sure your website is compatible with AI technologies and that your product information is comprehensive, accurate, labelled and categorized correctly. Then, it’s up to you to see what’s out there and what it can do for you. From sentiment analysis to AI-powered chatbots, there are so many AI tools that can not only help your brand get noticed and selected, but can also create efficiencies in your day-to-day marketing tasks.
Social influencers are now a key ingredient in marketing strategies.
Influencer content has shown incredible value within the past couple of years thanks to social media platforms like Instagram and TikTok. A report conducted by Morning Consult Pro found that the Gen Zers and Millennials who said they trust social media influencers grew from 51% in 2019 to 61% in 2023. It’s expected that in 2024, brands will spend $7.14 billion on influencer marketing alone.? For building materials marketers, anything from paint swatches and countertop finishes to building design and repair videos are types of content that are widely searched by users looking for trusted resources and recommendations.
> What can building materials marketers do?
Embrace social media and its network of influencers. This is a great opportunity for building materials companies to not only tap into larger audience groups and channels, but also create high-quality content that can be used for a long time. Whether you’re looking to increase your reach and awareness or create trusted owned content, an influencer campaign can help you achieve both. When choosing a social influencer, be sure to work with one who matches your brand’s personality, has a following with those in the industry and is on a platform that makes sense for your brand and your business objectives.
Purchasing items online is the new normal.
Ecommerce sales are continuing to grow. By 2025, they are expected to represent almost 25% of total retail sales.? So, it makes sense that the building materials market is also showing growth. The global building materials market was estimated at USD 271.98 billion in 2020, and is projected to grow at a CAGR of 5.57%, reaching USD 376.72 billion by 2026.??
> What can building materials marketers do?
Embrace ecommerce and social commerce in your marketing mix. For building materials companies, this means it’s time to strengthen ecommerce efforts. By providing the best online shopping experience and utilizing omnichannel capabilities, you can reach a more vast customer base. While ecommerce allows buyers to order products more easily, it also helps businesses with their sustainability efforts, which is a major consideration for consumers today. Although it might be down the road for some building materials brands, introducing social commerce also holds great benefits. For products like paints and accessories, social commerce allows for more product accessibility and provides timely inspiration. To maintain excellent customer service, make sure your customer service teams are able to support any questions and inquiries that come from social channels, so you can address their needs in real time.
Sustainability means more than ever before.
Sustainability has become more than just a statement for brands and consumers. It’s become a core factor in purchasing decisions. The majority of US consumers will pay more for environmentally friendly products, and research has found that 74% of consumers care about the environmental impact of the products they buy.??
> What can building materials marketers do?
Put sustainability at the forefront of your marketing story. As marketers, it’s crucial to recognize this trend and adapt a brand’s sustainability story into something greater. It’s not just about adopting sustainable practices or reducing environmental impact – it’s about weaving sustainability into all aspects of a brand. From marketing communications to internal language, sustainability needs to be at the forefront of your messaging. Sustainability can be something that any brand can own, but your story can (and should) still be unique.
New year. New opportunities.
From embracing ecommerce and influencer marketing to prioritizing education and sustainability while leveraging AI and digital experience, 2024 is the year for building materials brands to differentiate themselves, stay ahead of the curve and focus on stronger ways to provide customers with high-quality products they can trust.
Contact us to learn how JKBuild can help building materials companies drive growth in 2024 and beyond.
Sources:
https://www.cbc.ca/news/business/black-friday-holiday-retail-1.7036230
https://www.pymnts.com/earnings/2023/lowes-cuts-sales-forecast-as-consumers-decide-against-diy/
https://www.mydomaine.com/millennial-homeowners-lack-home-maintenance-skills-4772027
https://www.enr.com/articles/56708-global-survey-us-now-is-most-expensive-for-construction
https://www.shopify.com/ca/blog/influencer-marketing-statistics
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