Construction Drives the Trades’ Success Media Group Online’s recent Construction Industry 2019 Profiler provides in-depth information about the industry, but construction’s outlook is critical to the mechanical trades, so more information is included on page 1 of the Profiler. Construction industry growth has been contracting from the double-digits of the 2012–2015 period, slowing to a 3% increase during 2018, or $806.8 billion, and remaining relatively flat for 2019, or $808.3 billion, according to Dodge Data & Analytics. According to information from Associated General Contractors of America (AGC), a 3.8% increase in the cost of goods and services for the construction industry was, in large part, the cause of slowing construction and those costs are apt to increase during 2019.

Plumbers’ Revenues and Optimism Increase According to IBISWorld, the plumbing trades generated $107 billion in total 2018 revenues, which is a 4.9% increase from October 2017. The number of plumbing companies also increased substantially, from 116,990 to 120,333. A negative/positive trend is many new-home builders’ use of less-expensive plumbing materials. Home- owners are often surprised by how soon they need a plumber and the costs, which is an opportunity for plumbers to educate consumers. Because homeowners and businesses need plumbers, they can reach more potential customers by surveying current customers about what services they need and then offering specific services to the right sectors of customers.

Electric Contractors: Small Companies with Big Opportunities Although the data in Electrical Contractor’s 2018 Profile of the Electrical Contractor is for 2017, it does reveal more contractors were working on traditional power/lighting, or 93% of respondents, while those working on power-quality projects declined 46%. The size of the average electrical contracting firm continues the trend of previous years, with 71% of them employing 1–9 persons and 68% with annual revenues of less than $1 million, and 43% of all companies had annual revenues of less than $250,000. The 2018 survey also revealed 52% of all companies were either extremely (16%) or very (36%) confident the economy would continue to grow during the next few years, with those with 5–9 employees being the most confident, at 71% extremely/very.

HVAC Contractors Are Happy Their 2019 Business Will Run “Hot and Cold” Although anecdotal, a number of HVAC contractors quoted in a January 2019 ACHR News story are expecting increased revenues during 2019. Finding qualified labor is a major challenge for general contractors and the trades. According to the US Chamber of Commerce’s Q4 2018 Commercial Construction Index, HVAC contractors was 6th on a list of 12 trades facing this issue. Another trend that bodes well for HVAC contractors is many companies’ increasing interest in energy efficiency for their buildings. A 2018 survey found 68% of US organizations plan to invest in building controls during the next 12 months.

More Trades Adopting Helpful Technologies According to the US Chamber of Commerce’s Q4 2018 Commercial Construction Index, 73% of general contractors have adopted new technologies, such as wearables, RFID tagging and drones, compared to 21% of trade contractors. For example, just 16% of electrical contractors use equipment tagging, 6% wearable technology and 8% RFID tags; however, the use of each of these technologies are expected to increase during the next 3 years, or 30%, 23% and 21%, respectively. A 2016 McKinsey&Company report stated robots could replace 78% of predictable physical work, but only 10% of all construction jobs. Although automation has and will have a place in the mechanical trades, most jobs are considered safe for now.

Advertising Strategies Most companies in the mechanical trades should make regular maintenance, such as furnace cleaning and an electric system reviews, constant messages in their advertising, with special offers or discounts prior to the appropriate seasons. Another low-cost opportunity for the mechanical trades is becoming a speaker at local service-club meetings. Not only do members want to hear anecdotes, especially humorous ones, about customer experiences, but also business challenges trades professionals face. A marketing expert in the trades suggests companies should be 70% advisory and 30% promotional in their marketing. Buying ads on your station’s Website, especially the weather page, during obvious seasons, will allow trades professionals to offer advisory tips.

New Media Strategies Marketing oneself as an advisor first makes a blog a critical element for any mechanical trades professional’s new media marketing program. Occasionally, substitute a written blog post with a short video post, which typically receives a more positive response than text. Short videos, which a trade professional can create himself or herself with a phone, that provides specific information for homeowners and businesses are invaluable social media posts. Topics should include seasonal tips, customer case studies, newest technologies, etc. You should definitely share Media Group Online’s New Media Insights Report, How to Improve Customer Communications with Text Messaging, with mechanical trades professionals, as this is a channel and method more consumers prefer.