The construction industry is on the rebound. In March, 110,000 jobs were added to the industry and more are on the way.
Leaders feel their sector building up. Who’s spending big on advertising?
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A ‘Tsunami’ of Economic Activity
Even though executives were only cautiously optimistic at the end of last year, their hopes are rising.
“Here comes the tsunami of economic and employment growth across America,” said ABC Chief Economist Anirban Basu. “With more stimulus on the way, the United States may end up growing faster than China this year, which would be the first time that occurred in decades.”
President Biden’s multi-trillion dollar Build Back Better bill, if approved, will dedicate substantial funds to restoring America’s infrastructure. Most of the funds will go to heavy construction and civil engineering.
If put in place, the bill will escalate government investment in research and infrastructure to its highest levels since the 1960s, when the government was investing in interstate highways and the Space Race.
At the same time, new housing construction is also expected to boom.
“Builders are going to be really busy,” says Danushka Nanayakkara‑Skillington, associate vice president, forecasting and analysis, at the National Association of Home Builders (NAHB). “Now, more than ever, people want more space. New construction on single-family homes could exceed 1 million.”
Single-family home construction hasn’t hit 1 million since 2007. Construction leaders face hurdles, like complicated zoning laws, lumber tariffs, and a lack of skilled employees, but the suburban shift in housing demand is high. (Note: The flip side is that apartment construction will decrease.)
As the construction industry ramps up for a busy year, how are B2B construction brands advertising?
Even though the tsunami is on its way, it’s not here yet.
In Q1 of 2021, there were 2.7k brands spending $30.5mm in print and digital ad spend. Spend is down 23% from Q1 2020, where 3k brands spent $40mm.
Though overall spend is down, ad spend in the digital B2B ad space is up 52% in Q1 2021 vs Q1 2020. $9.55mm was invested into B2B construction digital ad spend in 2021 vs $6.3mm in 2020.
This shift to digital advertising is significant for publishers to pay attention to, as construction traditionally has been slow to digitize processes. During COVID, however, construction professionals realized eCommerce and last-mile logistics would be crucial for business success.
Top brands advertising in the B2B construction industry in Q1 2021 include:
- Bobcat Excavators
- The Kubota Corporation
- Perkins Engines Company.
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