Auxinews

Wow what a ride the last six months has been for any business in North America but especially in the building materials distribution and retail sector. First the housing bubble popped, then all of the credit evaporated, and now the forecast looks rather hazy for 2009. A possible bright spot in 2009 will be a federal government stimulus package for infrastructure improvements that may assist with revitalizing the economy, improving the job market and in the end boost the housing sector. Business is still going to take place even if it is to a smaller scale then previous years, and those distributors and retailers that re-position themselves will have a marked advantage to capture that business.

Many businesses have weathered tough economic times before and even though this may appear deeper and longer business improvements can be made. Some of those improvements may include researching and discovering new business opportunities; investing in current assets; developing strategic partnerships with manufacturers; and providing meaningful communication to customers to build trust and re-establish confidence.

Researching and discovering new business opportunities is a daily struggle for all companies that are swamped with orders during a building boom. The tunnel vision that is developed from just satisfying current customers does not allow much thinking outside of the box. Now that things have slowed down a bit start researching some of those new avenues for sales. Obviously, one of the biggest opportunities for building material distributors and retailers is the green products industry. Taking the time to learn about the various green building standards, green building products, product certifications, government incentives, green product manufacturers, and more could be vital to re-positioning for the next boom. Established green product distributors and retailers who are quite familiar with this industry should seek to stay ahead of the game due to the industry’s growing competitiveness.

Investing in current assets can take on many forms but the most dynamic assets that any company has is its employees. Given the exponential growth of the green building and green products industries many employees may have been challenged in the last few years to keep up with all of the information. Now is the time to develop some in house trainings and possible outside educational opportunities to ensure that as new products become available, there green values and place within one or many of the green building programs can be effectively communicated to customers. Manufacturers frequently provide trainings to customers (distributors and retailers) to ensure that salespeople are knowledgeable enough to sell their products.

Developing strategic partnership with manufacturers could be another important step in re-positioning a business for the next boom. Many building material manufacturers have been seeking input on how their products fit within the various green building programs or markets in North America. Distributors and retailers are at a key place in the supply chain to provide two-way communications from the market back to the manufacturers and vice-versa. During this maturing phase of the green building/products movement this communication could not be more important to assist the manufacturers with product information such as: market acceptance, products usage, price, availability, and interest in new types of green products. Distributors and retailers have daily contact with professional and private purchasers whether it is a general contractor, architect, interior designer, government procurement officer, or Joe/Jane homeowner. The conversations, thoughts and perspectives about new products are valuable for the further development and market acceptance of any new products. These conversations, thoughts and perspectives should be captured and shared with the manufacturers so further improvements can be made to the green products and green building projects.

Continued communications with past, current or potential customers is critical to keeping them knowledgeable about new products offerings, resources, discounts, sales, and other opportunities. Whether it’s a newsletter, community event, social gathering, or email notice; these communications can provide customers with resources for them to research new green building products and techniques that are available. This service allows end-users to learn about ‘green’ products or buildings and could demonstrate how they can get involved. By being a local expert of these issues and providing some resources a company can start building trust that when a customer’s project gets started they will be looking to you for advice and materials. Building trust and re-establishing confidence are two intangible crucial services that need to be provided by any business during this economic slowdown.

So given the cyclically trends of capitalism the down turns are always more painful, but as a local community, county, state and nation we will start the re-building during 2009 and those companies that re-position themselves to be credible leaders in the green building and green products industries will have the advantage.