12 Feb Lessons from 2016 Design & Construction Week
In late January, I attended the Design and Construction Week in Las Vegas with 110,000 others from across the globe. This event is comprised of three large trade shows from the building trade: the International Builders Show (IBS), the Kitchen & Bath Industry Show (KBIS), and the International Surfaces Event (TISE).
Although I attend these events each year, there were four things that struck me about the 2016 show.
- Industry Consolidation
- Meaningful Innovation
- Market Disruption
- Messaging
Industry Consolidation: Like many industries, the construction industry is consolidating – especially now that it’s back on its feet after more than seven years. This results in larger holding companies, which can serve as a single source for the construction trade. These companies grow by buying well-known smaller brands. They add related product lines into their portfolios. They may even purchase channel partners to increase distribution.
Upshot? Consolidation often affects an enterprise’s ability to quickly and efficiently capitalize on market opportunities. The key is to recognize early indicators of market needs sooner than competitors. A second key is to prioritize customer/specifier needs, create and refine concepts to address the needs, and assess market viability of concept solutions more quickly.
Meaningful Innovation: While at the show, I always take time to visit the new product contest areas. I remain surprised at the large number of “Me Too” products that are showcased each year. New finishes, new handle styles and new colors are important to fill out a manufacturer’s product portfolio; however, they don’t create first-mover advantages.
Upshot? We all know the innovation projects that get the most funding are ones that are perceived as “blockbusters” for the enterprise. But what about the other concepts that constitute “base hits,” which get starved for resources and never see the light of day? The key is to align and prioritize innovation concepts with long-term enterprise financial strategy. (Where does the C-Suite want the enterprise to be in 5-7 years? What will it take to get there?) A second key is to quickly and efficiently solicit new product concepts from the “enterprise at large” (i.e. non-headquarter employees, channel partners or specifiers).
Market Disruption: What will disrupt markets and create new market opportunities? This year, you couldn’t find these things in the main exhibition halls. The companies that gave the best examples of disruptive technologies were found in the South Hall: the space dedicated to first-time show exhibitors and smaller entrepreneurial companies. These disruptors are typically ones that are delegated to R&D or advanced strategy groups. The funny thing is that much of this information lies at the grassroots level. Some of it lies in arcane places like the U.S. Patent Office. Some of it comes from news coverage and competitor analyses.Upshot? The key is to identify forces that disrupt their present value chain (i.e. new technology, a changing regulatory climate, or new market entrants). A second key is to create feedback systems and early reporting so that this information flows up the management food chain more quickly and efficiently. The last key is to connect the dots using scenarios weighted by probability so that it aligns with C-suite strategy.
Messaging: Despite having attended the show since 1995, I’ve always found it difficult to understand the lack of evidence for end-user customers and specifiers. Few to no exhibitors had compelling value propositions in their booths, nor were they using the show as a venue to 
conduct research. Few used it as a venue to ask questions like, “Why do customers buy?” or, “Why do specifiers recommend?” These are questions that most enterprises with market research ask. The problem is that they’re not always asking the question with the future in mind, nor do they have value propositions and evidence that supports their claims now or in the future.
Upshot: The key is to revisit the messaging plan, as well as that of competitors. We believe it needs to be done on an annual basis. The key is to look at it by existing and emerging customer and influencer segments. A simple message with points of evidence is worth its weight in gold.
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