According to a recent study, the reputation of the construction industry has practically stagnated in the last couple of years. That's good news, because we assumed that the ongoing economic crisis had also hit industry-related images hard.
As you know, the past year and a half have been exceptionally profitable in the construction industry and in the news about it: a drop in volume approaching the recession of the 90s, bankruptcies and the resulting damages to customers, a standstill in housing production, a large number of unsold new apartments, uncertainty in the housing market, a decrease in jobs...
That's why the results of this year's Trust&Reputation survey were a positive surprise, even though reputation took a big hit and it is still plowing at a weak level.
The overall industry reputation index on a scale of 1–5 was now 2,84, while two years earlier it was 2,88 – the difference fits almost within the margin of error. In previous years, the direction has been slowly but steadily upwards. The study is based on the views of five hundred respondents representing the general public.
The economy is miserable, responsibility is clearly getting better
Although the overall reputation was at its former level, its structure has changed. Of the various components of reputation, the assessment of the companies' financial situation, which had downright collapsed, has understandably taken a hit. Koetus also had faith in the management's ability. The perception of the industry's ability to renew was correspondingly weakened.
Instead, opinions have improved the most on the factors of responsibility, i.e. environmental and social responsibility, transparency and openness of operations, treatment of employees and readiness for dialogue. The products and services also received better evaluations than before.
These, in turn, have the strongest impact on stakeholder support and thus the operating conditions of companies. Stakeholder support was even slightly better than before.
Regarding stakeholder support, the willingness to be on the side of the construction industry in difficulties had grown the most. This could be interpreted as an indication that the current crisis in the industry is primarily seen as caused by external causes. The sharp increase in inflation, construction costs and interest rates that followed the war in Ukraine have indeed been an exceptional and toxic combination.
Interest in applying for jobs at companies in the field had decreased, which is natural when jobs are shrinking. However, the fact that the employer image of the companies in the field of reputation factors has strengthened at the same time gives hope for the future.
Builders have caught up with other industries
The value of the victory in the fight is increased by the fact that in last year's survey of the entire business life, the reputation of the business life in general had gone down. Similarly, the average reputation of the large group of companies that participated in the study had fallen more than ever before. The gap between the construction industry and other industries had thus narrowed.
We monitor the development of the industry's reputation through research on a regular basis. Part of RT's strategy success measures are also tied to research results. The goal is, among other things, to improve the industry's reputation and for the industry to be perceived as more responsible.
Companies at the forefront of the construction industry are actively developing the responsibility of their operations and are also communicating it more widely. At the industry level, we promote change with, for example, low-carbon and biodiversity road maps and a responsibility program. Both actions and communication are important. And specifically always in this order.
Five years ago, we started a long-term communication program, the so-called construction industry reputation talks. Together with our member companies, we strive to reach people in new ways and with topics that, for example, are often missed in the media.
Reputation develops at a snail's pace and the goal moves further and further along with the growth of people's expectations. Even though the old mental images sit stubbornly, it has been encouraging to see that they, like our industry, are slowly being renewed.
Merja Vuoripuro
Director, Communications and Responsibility
merja.vuoripuro@rt.fi + 358 40 587 2642Confederation of Finnish Construction Industries (CFCI)
It is great to see that sustainability and environmental issues have risen to the forefront of the construction industry's reputation. Reducing emissions throughout the supply chain is important, and the development of fuels used on construction sites is also part of this change.
Low-emission alternatives to diesel traditionally used on construction sites are increasingly available, such as renewable fuels (HVO, biofuels) and smarter fueling solutions that reduce consumption and emissions. These methods can reduce the carbon footprint of construction sites without compromising work efficiency.
The development of responsibility in the construction industry is also an important signal for other industries. By acting as a pioneer, Finland can improve its competitiveness and ensure that construction develops in an increasingly sustainable direction. The refueling patrol has sought to reduce the environmental burden by focusing on responsibility http://www.tankkauspartio.fi