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While overall construction is back to pre-recession levels, everyone is “still licking their wounds” from the housing bubble bursting in 2006 and the ensuing financial crash of 2008 – the worst financial crisis since the Great Depression, according to Ben Battaglia of Robert Bosch Corp.

“So the takeaway for all of us here is we are back to a growth stage, but consumers are wary of another crisis and looking for more bang for their buck,” Battaglia noted in his Associate State of Manufacturing presentation to the Specialty Tools and Fasteners Distributors Association convention in Charlotte, NC.

To succeed in this fragile market, manufacturers have to be on top of all trends and work with distribution partners to address them.

Technology is the top trend for businesses to adapt to, Battaglia said.

“I hope this doesn’t shock anybody in this room, but the Internet is a game changer. The explosive adoption of Internet and mobile phones in emerging markets will push the global business-to-consumer (B2C) ecommerce sales to hit $1.5 trillion in 2014, resulting in 20.1% increase in sales as compared to last year.”

The way consumers are using the Internet to purchase products, pay bills, do banking, book vacations — customers now expect to conduct their daily business using similar technology.

“The digital transformation of the right products, data management and services is happening,” Battaglia stated. “As distributors to the construction industry, it is important to think about how you can get all your current off-line services you provide into online tools for your customers.”

Because of this rapid change, it is critical for manufacturers to have an online strategy to address brand position, pricing integrity and promotional strategy across channels. “We need to work with you, our distribution partners, to deliver the right content to showcase your value propositions to your customer base,” he emphasized.

A good example of this is product service and repair.

“Manufacturers need to drive users to our distribution that sells the quality, performance, and service solutions to the professional trades on a daily basis.” Web: STAFDA.org