GUEST COLUMN: The importance of a strong brand in the AEC industry [Column]

The AEC (Architecture, Engineering, Construction) industry is highly competitive and differentiation within the industry can mean the difference between winning multimillion-dollar projects or not even receiving an invitation to bid. When and where competition is fierce, companies with a strong brand identity have the competitive advantage.

Branding historically was a low priority in the AEC industry because the industry believed it operated differently from other industries. Branding strategies were ignored rather than embraced.

Today, AEC firms see the value of branding as a way to differentiate their firm from the competition. Forward thinking AEC companies who invested in a strong brand presence dominate the market share. These firms also experience stronger reputations in their markets, a focused internal corporate culture, and support for premium pricing on awarded projects.

A strong brand in the AEC industry epitomizes peak performances of an AEC firm and makes them visible over a long period of time, and presents its credible uniqueness at all brand interactions. Strong brands have clear brand core values, an unmistakable positioning, and a long-term brand strategy.

A successful company has a strong reputation, which is the foundation of the brand. AEC firms that take short cuts or under-deliver always will undermine the company’s brand. Reputation built on positive relationships is vital in the AEC industry. The company must perform quality work, offer timely service, have clear and transparent communications and genuinely care about clients, team members, subcontractors, suppliers and other stakeholders to build a strong reputation. Failure to perform admirably will result in a costly and sometimes impossible challenge to repair a damaged reputation.

Research indicates that buyers of AEC services rank good reputation as their top selection criteria when considering which AEC firm to hire. A good reputation very often is the “tipping point” when picking the winning firm over the runner-up. Experience shows that the top firms short-listed for any project are all technically qualified so it comes down to culture, fit and reputation.

An interesting finding is that 80% of referrals, which are a critical success factor in the AEC industry, come from people who have not worked with the person providing the referral. And 95% of those non-client referrals come from people that never met the person or company they referred. These are called reputation-based referrals because the firm’s reputation in the marketplace may come from visibility through social media, speaking engagements, articles in industry publications and/or hearing the person’s name and company name in the industry.

Establishing a strong brand identity means building a foundation that will serve the firm for many years into the future. A high-rise building cannot be designed or built on a weak foundation. Likewise, a company’s strong sustainable growth cannot be built with an inferior brand.

And it is wise to remember the following quote from Warren Buffett: “Your premium brand had better be delivering something special, or it’s not going to get the business.”

Glenn Ebersole, Professional Engineer, is the business development manager at CVM and CVMNEXT Construction in King of Prussia. He can be reached at [email protected] or 610-964-2800Call via Mitel ext. 155.