Construction reports often have squirrels of considerable size in them distracting us from the truth in the manufacturing sector. Right now, some are telling us that manufacturing is dying. But, how do you know they are squirrels? Donâ€t you have to look around them to see whatâ€s behind them?

When you do that, manufacturing becomes a $1 trillion manufacturing pipeline for planning projects alone.

The Number That You Need to See

Here are squirrels preventing you from seeing that actual trillion dollar number from recent reports:

• New Manufacturing construction fell by 77.2% in Q2 as uncertainty around industrial policies and high interest rates impact investment.
• Manufacturing construction will decline sharply over the year, falling 43%. The reduction in planned capital expenditure that occurred following the announcement of the Trump Administrationâ€s tariffs in spring 2025 are weighing on new construction this year.
• Investment that was supported by federal funding is waning. New manufacturing construction will experience low and stable growth through 2030.
• Nonresidential Building starts are expected to decline by 29.8% in 2026, driven by a sharp drop in Manufacturing buildings and additional weakness across several other subsectors

Those are squirrels that predict a 43% dip in manufacturing construction in 2026.

But, they are squirrels. When we dive into the data, current planning-stage manufacturing projects shows 2,497 manufacturing projects with a combined value of $1.095 trillion. That number is what you see when you bypass the squirrels. That number should generate excitement. But that number is not getting cited. If it was, it would launch sales teams into motion.

Letâ€s look even closer.

• One hundred and twenty-two projects — less than five percent of the count — account for 83% of that total value. The Terafab Chipmaking Facility in Grimes County, Texas: $119 billion. Project Crystal Land AI Hub in Phoenix: $100 billion. Intel’s Oregon expansion: $36 billion. Samsung’s nine separate fab phases in Taylor, Texas, approaching $160 billion collectively.
• These are semiconductor fabrication facilities and the mega projects we often discuss. The specification path is closed before most manufacturers even know such projects exist. The procurement is national or global. The mechanical systems are proprietary. Your rep cannot call his way into these buildings.

However, strip those projects out, and the manufacturing pipeline looks entirely different…almost has a glow about it.

What the Number Is Minus Squirrels.

There are 1,375 projects under $25 million in value. Combined, they represent $8.9 billion in construction activity. The $5M–$100M band alone contains 1,172 projects worth $32.8 billion. These are food production facilities, light industrial buildings, brick plants, logistics parks, agricultural processing expansions, manufacturing renovations.

Bridgetown Natural Foods in Lebanon, Tennessee — a production line expansion. Red Bird Farms in Denver. Brown Oak Brick in Bryan, Texas. Back of the Yards Industrial Facility in Chicago. Aspen Guard Manufacturing in Portland, Tennessee. Avon Landing in Brownsburg, Indiana.

Nobody is talking about these. No conference panel has been convened. No LinkedIn post has gone viral over the Red Bird Farms project.

Yet they are real. They are in planning. They require products, specifications, and the channel relationships your company has been building for years.

The State Picture

The accessible manufacturing market, however, is not evenly distributed. Texas alone has 407 projects under $100 million — nearly twice the next largest state. Florida and California each have 118. North Carolina has 96. Ohio has 90. Michigan, Wisconsin, Alabama, Indiana, Tennessee — all active.

If you have distribution strength in any of these states, you have a pipeline. Not a theoretical one. A real one, in planning stages, with architects and owners who have not yet made their product decisions.

The Distinction That Changes Your Sales Strategy

What most analysts read when they report that manufacturing construction is collapsing measures what is breaking ground. The planning database weâ€re talking about measures what is being designed. They are different. And that difference is important to your strategic planning.

Because both are true simultaneously. Manufacturing starts are declining sharply because the CHIPS Act and IRA-funded semiconductor fabs that dominated 2022-2024 are structurally complete. Those megaprojects broke ground. They got built. Their construction spending has been recorded and is now rolling off the numbers.

The 1,375 accessible projects in planning, however, have not broken ground yet. They are not in the starts data. They are not in the headlines. They are exactly where opportunity resides before it becomes obvious to everyone else.

The Part Nobody Is Doing

487 of the 2,497 manufacturing projects in this dataset are alterations — existing facilities being modified, upgraded, or expanded. Another 227 are additions. That’s nearly a third of the entire pipeline going into existing buildings, not new construction. And by the way, renovations is ALWAYS bigger than new construction, only renovations as a market isnâ€t tracked as well as “new.”

I want to share something from research we’ve been conducting with architects across the country — not specific findings, but a pattern that showed up consistently.

Manufacturer rep engagement is thinning. Across multiple interviews with practicing architects, in different regions, different firm sizes, different project types, the same observation surfaced repeatedly: reps come around less.

Itâ€s not that the architect doesnâ€t have time for them; many said they continually reach out when the need arises. And itâ€s not that AI has replaced reps; though they use AI, all agree on one thing: human contact is irreplaceable.

So whatâ€s the problem? As one architect put it: “it’s getting harder and harder to find companies that have knowledgeable in-house reps.”

In their effort to streamline things, it looks like manufacturers stream-lined themselves out of the one thing that helped them differentiate themselves from the competition: knowledge and service.

Ladies and gentlemen, that is what I call an opening.

Because architects havenâ€t stopped making product decisions. They havenâ€t stopped maintaining or deferring to specification lists. They havenâ€t stopped using their inhouse, home-grown specification software of things like MasterSpec and SpecLink to organize what they’ll consider on a project.

Products that make it onto that internal short list get specified. Products that don’t, don’t get considered at all — regardless of merit.

Two Questions Worth Asking Your Reps This Week

First: Are we on the short list at the architecture firms attached to these planning-stage manufacturing projects in your territory?

Second: When did someone from our company last visit their library?

The answer to both questions will tell you more about your real market position than any industry forecast.

Stop Feeding the Squirrels

The dip in manufacturing is not wrong. It is just not the entire picture.

Your truth is the 1,172 projects between $5 million and $100 million sitting in planning right now, in states where you have distribution, at a scale where your specification relationships actually matter.

The industry is staring at the $119 billion Terafab facility. Thatâ€s a mighty big squirrel.

The smart money is ignoring those mega-squirrels and going after the reality of the marketplace. Because right now, oddly, most of the firms that used to show up have stopped showing up at the very place they can do some good: at the specifier.

Time to show up. Let us know how we can help you!

The post The $1 Trillion Squirrel appeared first on Accountability Information Management.

From hyperscale campuses making headlines to smaller upgrades quietly entering bid, the category feels like a single, massive opportunity. But treating “data centers” as one market is a mistake—and an expensive one for business development teams.

Because this market isnâ€t moving in one direction or on one timeline.
Itâ€s fragmenting by trade, scope, risk, and timing.

Some firms should be pursuing work immediately.
Others should be positioning carefully—and waiting.
A few should not be spending pursuit dollars at all yet.

What follows is not a list of projects. Itâ€s a pursuit map: a trade-by-trade framework for deciding what to chase, when to engage, and when discipline matters more than optimism.

HVAC CONTRACTORS

Pursue now: Institutional upgrades and retrofits

The most reliable HVAC opportunities in the data center market today are not hyperscale campuses. They are existing facilities with immediate reliability needs.

These include:

• CRAC replacements and supplemental cooling
• Full HVAC system replacements
• Temporary-to-permanent cooling transitions
• Universities, hospitals, airports, and federal facilities

Why this work is real:

• Scopes are defined
• Budgets are allocated
• Failures are already occurring
• Owners cannot tolerate downtime

These projects reward firms that understand redundancy, phasing, live-facility work, and commissioning coordination—not just equipment.

Watch carefully: Hyperscale campuses

Large campuses will matter, but HVAC firms should engage selectively and conservatively until:

• Power delivery is confirmed
• Cooling topology is specified
• Early enabling or shell packages are released

Until then, these are future opportunities, not near-term backlog.

HVAC takeaway:
2026 revenue will come from upgrades and retrofits. Campuses remain a positioning exercise.

BAS / CONTROLS INTEGRATORS

Pursue now: Institutional and municipal upgrades

Controls are quietly embedded in many active projects:

• HVAC + BAS combined scopes
• Energy monitoring upgrades
• Federal and municipal reliability initiatives

These projects favor integrators who can:

• Demonstrate system integration maturity
• Support operational visibility
• Navigate owner IT and cybersecurity constraints

This is not commodity controls work—itâ€s infrastructure modernization.

Position early: Large campuses

Mega-campuses with energy narratives (on-site generation, hydrogen, grid-interactive strategies) will eventually require sophisticated control architectures.

Engage early as:

• Advisors
• Concept-level architects
• Integration strategists

Avoid early pricing or competitive bidding until scope hardens.

Controls takeaway:
Monetize retrofit work now. Treat campuses as relationship investments, not sales targets.

ELECTRICAL CONTRACTORS

Pursue aggressively: Power upgrades and distribution

Electrical contractors are among the most consistently well-positioned trades right now.

Active opportunities include:

• UPS replacements
• Switchgear and distribution upgrades
• Redundancy improvements
• Airport, healthcare, and federal facilities

These owners understand risk, schedule, and compliance—and procurement paths are usually formal and predictable.

Selective pursuit: Campuses

Campus opportunities become real only when:

• Substations are announced
• Utility interconnects are approved
• Early power packages are released

Until then, electrical firms should monitor, not chase.

Electrical takeaway:
Follow confirmed power, not speculative megawatts.

CIVIL / SITE CONTRACTORS

Best positioned trade (mid-term)

Civil and site contractors are often the first true beneficiaries of large data center campuses.

Why:

• Site work precedes vertical construction
• Design certainty is lower, but land and utilities move first
• Enabling packages unlock real dollars early

This includes:

• Grading and paving
• Utilities and stormwater
• Environmental mitigation
• Site access and infrastructure

Timing matters

Engage when:

• Zoning is resolved
• Permits advance
• Environmental filings surface

Avoid overcommitting pursuit resources before land and approvals are locked.

Civil takeaway:
Campuses are real—but only once the dirt starts moving.

FIRE SUPPRESSION / LIFE SAFETY

Pursue now: Regulated environments

Fire suppression firms are well positioned in:

• Hospitals
• Universities
• Federal facilities
• Live-facility retrofits

Clean agent systems and code-driven upgrades are often explicitly scoped and face limited competition from qualified bidders.

Position later: Campuses

Suppression scopes typically lag building shell and interior layouts. Early pursuit on campuses is premature without rack density and floor plans.

Suppression takeaway:
Compliance-driven urgency beats speculative scale.

COMMISSIONING / TESTING / QA FIRMS

High-value, underappreciated opportunity

Commissioning firms are increasingly critical in:

• Live-facility upgrades
• Redundancy validation
• Shutdown coordination
• Federal and healthcare environments

These projects cannot tolerate failure—and fewer firms can credibly operate in them.

Strategic positioning: Campuses

Commissioning should enter early as:

• Risk mitigation advisors
• Redundancy strategists
• Operational validation partners

Avoid positioning commissioning as a late-stage checkbox.

Commissioning takeaway:
This is becoming a decision driver, not an afterthought.

EXECUTIVE SUMMARY — THE PURSUIT MAP

AIM Insight

The biggest mistake firms will make in the next 12–24 months is chasing data centers as a single market.

The smarter move is disciplined:

• Monetize upgrades and modernization now
• Position thoughtfully for campuses
• Align pursuit timing with trade reality

Mega-projects shape the future.
Retrofits, infrastructure, and execution discipline pay the bills.

For more information or help in chasing, contact AIM.

______________________________________________

Methodology Note

This analysis is based on a review of 21 U.S. data center–related construction projects updated between February 6–9, 2026, sourced from publicly available project tracking and procurement records. Project stages (planning, bidding, post-bid, construction underway), estimated values, scopes, and timelines reflect the most recent disclosures available at the time of review. Aggregate dollar values are rounded and intended to illustrate order-of-magnitude activity rather than forecast outcomes. Trade-level observations are derived from stated scopes (e.g., HVAC, electrical, BAS, site work, suppression) and the presence or absence of bid dates, permitting milestones, and power or zoning confirmations. Interpretive conclusions reflect market structure and timing signals observed across the dataset and are not projections or guarantees of award, start date, or final project scope.

The post Chasing Data Centers? Here’s the Map — By Trade. appeared first on Accountability Information Management.

Because in the span of four days (Feb. 6–9, 2026), 21 separate data center-related projects moved forward in one way or another—new listings, scope updates, bid dates, stage confirmations, approvals, and “construction underway” flags. Together, these updates represent roughly $17.3B in active and emerging work.

But the real headline isnâ€t the dollar figure. Itâ€s the pattern:

• Big land + big power campuses are stacking up in planning (and staying there until energy, zoning, and timelines harden).
• Smaller retrofits and upgrades are already in bidding (meaning near-term MEP and controls work is live).
• Public-sector and institutional facilities are quietly modernizing critical rooms (UPS/CRAC replacements, HVAC reliability, clean-agent suppression)—often with tighter requirements and faster cycles.

This is a market with two clocks running at once:
the long clock of hyperscale campuses and the short clock of infrastructure upgrades.

By the numbers (what these 21 updates say)

Total value represented: ≈ $17.30B
Stage mix:

• 12 in Planning
• 7 in Bidding
• 1 Post-bid
• 1 Construction underway

Concentration:
Texas dominates the list with 9 of 21 projects, followed by Virginia (3) and Alabama (3).

And hereâ€s the most telling concentration of all:

8 mega-projects (≥ $500M each) account for ≈ $16.4B of the $17.3B total.
In other words: a handful of campuses are shaping the long-term curve, while the smaller projects create the nearer-term bid volume.

The three “lanes” the market is forming

1) Hyperscale land-and-power plays (Planning)

These are not “buildings” yet. Theyâ€re site strategy + energy strategy, with construction dates stated cautiously and contacts often undisclosed.

Examples from your updates:

• ECL TerraSite TX-1 (Cleveland, TX) — $8B, 600 acres, hydrogen-powered positioning, start not expected before Q3 2026.
• ampz Energy / Project Lufkin (Lufkin, TX) — $2B with an explicit scaling narrative: 55MW → 175MW (2026) → 1.1GW (2028) plus additional on-site generation.
• AVAIO Appomattox County, VA — $3B, power secured (CVEC + Dominion), fiber-route positioning, staged delivery (initial capacity targeted Q3 2027).
• Cologix Ashburn, VA — $800M, “Data Center Alley” interconnection hub logic, power capacity language (85MW initially; potential >300MW).
• PowerHouse 95 Phase II (Fredericksburg/Spotsylvania, VA) — expansion language tied to permitting and environmental constraints (wetlands impacts flagged).
• Portsmouth / Piketon, OH (DOE site) — $1B, “rapid data center construction” framing tied to federal site inventory and local PILOT structures.
• Metrobloks Indianapolis, IN — $500M, 75MW, phased, still early with limited disclosure.
• Black Mountain Power (San Antonio, TX) — $500M, land acquisition financing story suggests a “shovel-ready” pipeline strategy more than a single build.

AIM take: This lane is being driven by a single constraint: power availability and speed-to-power. The construction economy around these projects wonâ€t behave like a traditional bid market until power, zoning, and procurement lock. Until then, they remain “high-value signals” but not always “near-term opportunities.”

2) Municipal / institutional upgrades (Bidding now)

This is where the immediate work is. These projects have bid dates, procurement portals, defined scopes, and clear contact structures.

Examples:

• DFW Airport (Dallas, TX) — multi-scope procurement including Data Center 1 HVAC/BAS & Electrical Rehab; bids due 3/19/2026 via Bonfire.
• UAB General Services Building (Birmingham, AL) — UPS + CRAC replacement + clean agent fire suppression, bids due 2/19/2026, strict pre-qualification and hospital environment controls.
• Tuskegee University (Tuskegee, AL) — full HVAC replacement narrative driven by reliability failure (CRAC units inoperable), bids due 2/16/2026.
• Phoenix, AZ (DOE/WAPA) — small but telling: mini-split installation and defined NAICS framing, bids due 2/20/2026.

AIM take: These are the projects that keep the MEP, controls, and specialty contractors busy while the mega-campuses remain stuck in “planning gravity.” Theyâ€re also the projects most likely to reward firms that can prove schedule discipline, commissioning competence, shutdown coordination, and compliance maturity.

3) Rehab / modernization inside existing facilities (Bidding / Post-bid)

This lane matters because it often contains the hardest work: demolition, infrastructure replacement, coordination, uptime planning, and sequencing.

Examples:

• Houston METRO (1900 Main St., Houston, TX) — “rehab the 7th floor data center” with demolition + new infrastructure, bid due 2/18/2026, long list of planholders indicates active market interest.
• VA Big Spring (Big Spring, TX) — EHRM Tier 2 Data Center Construction, now post-bid with low bids announced, federal constraints and broad trade scope.

AIM take: If youâ€re selling into the data center economy, this is the lane where execution credibility beats marketing. These projects tend to surface the real differentiators: commissioning rigor, redundancy planning, and shutdown choreography.

Geographic signal: Texas isnâ€t just “hot”—itâ€s splitting into two Texas markets

From this dataset alone, Texas represents 9 projects—but theyâ€re not all the same Texas.

Texas Market A: Campus-scale land + power

• Cleveland (ECL), Lufkin (ampz), Fort Worth (Black Mountain + Hicks Field DFW11), San Antonio (Black Mountain), plus multiple rehabs/upgrades.

Texas Market B: Infrastructure upgrades and rehab volume

• DFW Airport procurement, Houston METRO rehab, federal VA EHRM work, small district relocation.

Translation: Texas is simultaneously the future megawatt story and the right-now retrofit story.

What to watch next (practical triggers for opportunity)

If youâ€re using this list as a business development radar, here are the next “confirmations” that matter more than press headlines:

1. Power milestones: interconnect approvals, substation announcements, utility service agreements.
2. Zoning resolution: especially where commissions split votes (example: Lansing DG06 approvals/rejections moving to City Council).
3. Named teams: architect selection, civil engineering filings, CM-at-risk announcements—anything that converts “conceptual” to “procurement.”
4. Bid packaging: once campus work breaks into early packages (site, grading, paving, utilities), the pipeline becomes real.
5. Commissioning language: when scopes start calling out redundancy tiers, shutdown sequencing, and testing requirements, vendor shortlists form fast.

Quick hit: the 21 projects, organized by “lane”

Mega / planning gravity (long clock)

ECL TerraSite TX-1 (TX), ampz Lufkin (TX), AVAIO Appomattox (VA), Cologix Ashburn (VA), PowerHouse 95 Phase II (VA), Portsmouth/Piketon DOE site (OH), Metrobloks Indy (IN), Black Mountain San Antonio (TX)

Mid-scale new builds (planning, shorter runway)

DG06 Lansing (MI), Provo redevelopment (UT), Nebius Birmingham (AL), Black Mountain Fort Worth (TX)

Bid-ready upgrades / rehab (short clock)

DFW Airport Data Center HVAC/BAS & Electrical (TX), Houston METRO rehab (TX), Phoenix DOE HVAC upgrade (AZ), UAB GSB UPS/CRAC + suppression (AL), Tuskegee HVAC replacement (AL), Alice Douse ES relocation (TX), LEB Lebanon site work (IN)

Post-bid / underway (execution phase)

VA Big Spring EHRM Tier 2 (TX) — post-bid
Hicks Field DFW11 (Fort Worth, TX) — construction underway (completion targeted June 2027)

The AIM read on the market

This isnâ€t simply “data center growth.” Itâ€s a construction economy reorganizing around power, speed, and reliability.

The mega-campuses are the headline projects—but they move on power, zoning, and procurement certainty. The real near-term work is being generated by the less glamorous but more immediate lane: HVAC, controls, electrical upgrades, UPS/CRAC replacement, rehab, commissioning readiness, and institutional modernization.

If you want to know where 2026 backlog will come from, watch the bid dates.
If you want to know where 2027–2029 backlog will come from, watch the power agreements.

For more information or help in navigating data centers, contact AIM.

________________________________________________________

Methodology Note

This analysis is based on a review of 21 U.S. data center–related construction projects updated between February 6–9, 2026, sourced from publicly available project tracking and procurement records. Project stages (planning, bidding, post-bid, construction underway), estimated values, scopes, and timelines reflect the most recent disclosures available at the time of review. Aggregate dollar values are rounded and intended to illustrate order-of-magnitude activity rather than forecast outcomes. Trade-level observations are derived from stated scopes (e.g., HVAC, electrical, BAS, site work, suppression) and the presence or absence of bid dates, permitting milestones, and power or zoning confirmations. Interpretive conclusions reflect market structure and timing signals observed across the dataset and are not projections or guarantees of award, start date, or final project scope.

The post $17.3B in Data Center Moves in Four Days — And the Signal Isn’t “More Data Centers.” It’s Where the Bottlenecks Are Shifting. appeared first on Accountability Information Management.

In the latest report from a great data construction firm, ConstructConnectâ„¢, Prisons as a category was listed as -39% year over year in terms of construction movement. And yet, prisons as a category in the same report later on in a table is reporting Prisons +1124.7% year over year.

Can both be true?

A closer look seems to suggest that the -39% refers to year-over-year change in September 2025 project counts (i.e., how many prison projects entered planning that month vs. the same month a year ago). The +1,124.7% reflects the year-over-year change in total project dollar volume (not project count) for all prison-related construction projects year-to-date through September.

So both ARE true.

But that makes it confusing, doesnâ€t it?

The numbers suggest a small number of very large prison projects entered the pipeline in 2025, but in September, fewer new prison projects were initiated compared to Sept. 2024.

My question is, then, so what?

Or should I say, who cares?

What is important to know is that if prisons are your target, there are identifiable architects and engineers doing that work, REGARDLESS OF WHAT THESE NUMBERS SUGGEST.

So the real question is: do you go after the people controlling the projects, or settle for knowing some of the numbers for your dashboard you may be building in a category?

Lock Them Up

Relationship building takes time. You canâ€t get on a spec with one sales call, or one email blast. To reach your target audiences, integrated campaigns demonstrating unique knowledge has been and always will be the key to successful sales.

We took a look at prisons to provide you some techniques to shape your communications if that is your market. If prisons are not your market, the same techniques can be applied to ANY category you are aiming at. Because the point is, weâ€re after relationships not numbers.

Step One: Create a Dataset.

Using platforms like ConstructConnect gives you tremendous first-look access to any category to begin building relationships. The dataset we created for this exercise involving prisons looks like this for the planning stage of prison projects:

• Total Projects Listed: 574
• Architects serving these projects: 96
• Engineers serving these projects: 75

As mentioned, weâ€re after the people BEHIND the projects.

Step Two: Identify the firms where the people are.

These numbers confirm  that the top 10 firms building prisons (only a subset of a much larger pool of participants across the dataset) are in the table below. We have to start somewhere!

Step Three:
Where are these projects with these firms located?

By dollar volume, here is where those projects are being built in the top ten states.

• New York
• South Dakota
• Washington DC
• Tennessee
• Ontario
• Hawaii
• Arkansas
• Georgia
• Colorado
• Kentucky

But by number of prisons, here are the states where the projects are being built:

• California
• Texas
• North Carolina
• New York
• Florida
• Ohio
• Louisiana
• Georgia
• New Jersey
• Washington

Step Four: Average Per Project

While you can now begin building relationships by firms based on the states in either volume or number of projects, a better way is to get the average cost per project in those states. When you do that, your target grid looks like this for prisons:

As much as weâ€d all like to fly to Hawaii to start a relationship with the BIG ONE, youâ€re better off doing the numbers game. Aiming at New York with 34 projects (even though the average per project is lower than almost all of them) gives us more targets to shoot at. And more targets, more chances to start and build a relationship.

Step Five: Focus

Looking strictly at New York, here are the architectural firms doing the work:

• Azar Design Co – Albany
• BCA Architects Engineers – Troy
• BCA Architects Engineers – Watertown
• GHD – Syracuse
• HOLT Architects – Ithaca (HQ)
• SMRT Architects & Engineers – Schenectady
• Spring Line Design Architecture + Structural Engineering
• Trautman Associates
• Urbahn Architects – New York

GHD – Syracuse is a huge architectural AND engineering company. With some investigative reporting on LinkedIn, you will find Kyle Morris, AIA, NCARB who is the Senior Architect at GHD doing the work. For variety, letâ€s also aim at South Dakota as well. In that state, only one firm is doing the work – nelson worldwide, LLC — and if we do some detective work with LinkedIn, weâ€ll find Meghan Vincent, AIA, NCARB is the one doing it.

Step Six: Attack!

The final step is to hatch your marketing and sales strategy. Emails, phone calls, CEUs, PR, Case Studies with your product, everything is on the table for review. You might find my blog Should I Sell to a Group or an Individual? helpful in planning your strategy.

So what are you waiting for?

Most prison construction projects are bid on using either a traditional design-bid-build or a more modern design-build process, based on highly detailed specifications provided by the government. Bidders must demonstrate they can meet strict security, performance, and budgetary requirements.

In the same way, your attack strategy should follow the guidelines that are used when responding to the specifications themselves.

 Master the target: Your communications plan must meticulously review all provided documents, backgrounds, design philosophies and how your product fits in.

• Calculate highly detailed analysis: Your attack plan must always include the cost savings, performance efficiencies, etc. that your product brings to the table. This is especially true in the prison market, where detention-grade materials, advanced security systems, and robust construction techniques are used.
• Demonstrate experience: Your communications should be competitive and transparent, and show the target why you are the best provider, which often includes a review of past performances.
• Show financial stability: Your communications should demonstrate your financial capacity to handle the project and background.

Like I said: what are you waiting for? Let us know how we can help, and good hunting! Contact jim@interlinegroup.com for information on this report.

The post Prison Break! How to Use Data to Tap the Prison Market appeared first on Accountability Information Management.

A recent article in Quirkâ€s rightly warned of a troubling trend: the potential for unscrupulous researchers to exploit artificial intelligence to fabricate study participants or even entire datasets. These concerns are valid — and they point to a deeper issue that long predates AI: the misuse of tools in the pursuit of outcomes that ignore integrity.

As someone who uses AI regularly in structured, transparent ways to enhance research and analysis, I believe itâ€s time to expand the conversation. AI isnâ€t the threat. Itâ€s a tool — and like all tools, it reflects the intent of its user. What we need is not less AI, but better frameworks for using it ethically.

What AI Wonâ€t Do for You

To clarify what AI is — and isnâ€t — letâ€s be specific. Here are examples of what models like ChatGPT will not do:

• Impersonate individuals or organizations
• Generate medical, legal, or financial claims without disclaimers
• Create false credentials, certifications, or survey data
• Provide or simulate identifiable personal data
• Evade platform content policies when prompted for unethical output

These are not theoretical guardrails. They are enforced in real time, with refusal messages that appear whenever a user attempts to cross ethical boundaries. In many cases, the AI goes a step further—explaining why the request is inappropriate.

Which brings us to the central issue: responsibility. Tools donâ€t have intent. Users do.

A Tale of Two Collaborations

In the past six months, Iâ€ve led two complex research projects using AI in a collaborative, structured way. One involved a detailed question-by-question audit of research findings already produced, and the same survey being repeated this year with a defined audience. The other, a technical analysis of a specific type of specification used by an industry association. In both cases, AI augmented the human process: organizing inputs, surfacing patterns, testing hypotheses, cross-referencing regulatory documents. It was not the sole source of truth. It was a lens—one of many—through which to view the problem.

The result? Better speed, sharper insight, and yes—greater integrity. Not despite AI, but because of it.

It is simply false to suggest that using AI necessarily introduces unreliability. In fact, in a world where human bias, oversight, and fatigue remain persistent threats to data quality, AI may be our best defense.

What Is Claude?

The article references “Claude,” an LLM developed by Anthropic, as one of the tools potentially susceptible to misuse. Claude, like ChatGPT, Gemini, and LLaMA, is a large language model—a tool trained to predict and generate text based on user prompts. It doesnâ€t conduct research. It doesnâ€t verify findings. And it doesnâ€t invent credibility.

No AI model can.

Fabrication Is Not a Feature of AI — Itâ€s a Human Failing

Letâ€s be honest: fake participants are not an invention of artificial intelligence. Fabrication in research has existed as long as research itself. From made-up survey responses to selectively omitted data points, the temptation to “massage the numbers” is a temptation rooted in human behavior—not in algorithms.

Researchers are people. And people can lie. Have we forgotten that simple logic?

In fact, many high-profile cases of research fraud over the years occurred without the use of any AI at all.¹ The tools involved? Word processors, Excel sheets, and, most often, a desire to serve a particular narrative at the expense of truth.

AI hasnâ€t introduced fabrication. If anything, it has spotlighted it—by raising questions about verification, auditability, and ethics that some corners of the research world have long ignored.

Misplaced Fears, Missed Opportunities

Thereâ€s an old expression in software: garbage in, garbage out. AI has not changed this principle. It has only raised the stakes. But the risk of misuse is not unique to AI. It applies to Excel. To PowerPoint. To market research firms with lax methodology. If a user wants to manipulate, the tool doesnâ€t matter. What matters is the culture, training, and ethics surrounding the tool.

What worries me more than fake participants is the very real possibility that fear of AI will prevent good researchers from using one of the most promising advancements in analytical thinking in a generation.

Where We Go from Here

Yes, letâ€s have a conversation about research integrity. But letâ€s ground that conversation in experience, not speculation. Letâ€s talk about disclosure, audit trails, and validation techniques—with or without AI. Letâ€s build stronger processes, not blame sharper tools.

In a phone research project a couple of years ago with an industrial designer, the conversation led to a discussion that brought out the fact that he owned a Tesla. Forgetting for a moment the disruption going on around Tesla today, during that interview, I asked the designer if he had to pick my clientâ€s product or the Tesla, which would he chose? Without hesitating, he said my clientâ€s product: a bidet. When we reported back to the client, the news spread like wildfire through the company. People didnâ€t believe it. Fortunately, we had the recording.

Today, that recording could be “faked.” Today, that interview can be invented. But what good would that do to the outcome of the clientâ€s objectives? What good would faking results do as we pursue truth, which is the ultimate determining factor is achieving our strategic objectives?

In Call Sign Chaos, Jim Mattis wrote: “Digital technologies can falsely encourage remote staffs to believe they possess a Godâ€s-eye view of combat. Digital technologies do not dissipate confusion; the fog of war can actually thicken when misinformation is instantly amplified.”

AI has the promise of making the fog so thick, we lose sight of ourselves as well.

AI isnâ€t the problem. Misuse is. And the best way to combat misuse is not to avoid the tool, but to learn how to use it wisely.

The real wake-up call? It isnâ€t about artificial intelligence. Itâ€s about what we, as researchers and marketers, are willing to claim as knowledge—and how we ensure it earns that name.

Thereâ€s nothing new under the sun—not even the temptation to misuse a tool. The real test isnâ€t whether AI can be trusted. Itâ€s whether we can trust ourselves.

Let us know what you think.

By Jim Nowakowski, President
Interline Creative Group, Inc. and Accountability Information Management, Inc.

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¹ Historical Examples of Fabricated Studies include:

• Andrew Wakefield and the MMR Vaccine Scandal (1998) — One of the most infamous cases of research fraud in modern history. Wakefield published a study in The Lancet claiming a link between the MMR vaccine and autism. The study used falsified data, lacked ethical oversight, and was later retracted. No AI was involved.
• Diederik Stapel, Social Psychology Fraud (2011) — A Dutch social psychologist who fabricated data for at least 30 published papers. His research on human behavior and social dynamics — widely cited at the time — turned out to be largely invented. Again, no AI. Just spreadsheets, academic ambition, and a stunning lack of oversight.
• Hwang Woo-suk, Cloning Research (2005) — A South Korean researcher claimed to have cloned human embryos and extracted stem cells. His work made headlines globally, until investigations revealed he had fabricated significant parts of the data. The scientific community was rocked by the realization that such deception could pass peer review.

The post Why AI Is Not the Threat to Research Integrity — But Misuse Is appeared first on Accountability Information Management.

Predicting potential sales or the overall business outlook whether for a manufacturing company, a supplier or any company for that matter is not an easy task because doing it involves considering a myriad of economic, market, and industry-specific factors.

The complexity is because of the changes that occur frequently in all of those factors[1]; nothing much stays the same with the variables of the world wherein each business operates. This is especially true of trends operating in the “social media” world and the world at large. In other words, your decision to follow trends or create them will be based on “roving data.”

For example, fashion is one of those markets that creates trends at a clip. Historically, these trends were thought to follow a 20-year cycle, rising in popularity, fading, and then returning with a modern twist. However, the rise of social media and fast fashion[2] has condensed this cycle, with trends sometimes rising and falling in a matter of months. And while in B2B may be looked upon as more slow moving, the pace of economic data trends feeding product development has been increasing.

Social media influencers perhaps more than most can promote items or brands that go viral, leading to mass consumption. These “influencers” are not limited to what we think of as traditional influencers on Instagram; architectural firms, engineering firms themselves become influencers in terms of the specifications they create. Design and merchandising technologies have reduced the time it takes for trends to reach a market. Condensing time is a function of technology, and it also increases the amount of change in trends themselves.

Another example is social media in and of itself. Trends on social media seem to change daily, as content drives engagement, traffic, and conversions back and forth like a ping-pong match. For example, TikTok trends can last as little as 2–3 weeks. Trends in any industry – especially like B2B — may seem stagnant or circular in comparison (witness whatâ€s happening with electrification in the HVAC industry). However, that perception is just that: a perception[3].

Sometimes, a type of cycle is repeated, giving the impression that “nothing changes.” In one case, an influencer or celebrity may write, “Traditional kitchens are moving out of fashion, open shelving taking their place.” Or, “white kitchens tend to be sterile and lacking personality. In reality, there is so much room to customize the space you spend the most time in.” Both are seeking to shape perceptions and not necessarily what you would call “reality.”

For example, the 2024 U.S. Houzz Kitchen Trends Study, indicated that 46% of the consumers surveyed preferred white cabinets—an increase of six percentage points from 2023 research. This supposedly proves that despite some perceptions on the market, that the trend of “white kitchens”  is changing. White is still “in.” Or is it?

Source: 2024 U.S. Houzz Kitchen Trends Study | © Houzz Inc

Remember the trend toward automated faucets started years ago? And yet, you still have the majority of specifications are for manual faucets.

There are many reports out there that talk about product trends and can vary based on your search criteria. In fact, using artificial intelligence (AI) to find current research on the product trends for kitchens or housing or any other market, adds to the already-several different sources of research on trends.

Not only does Houzz publish several reports on trends, but other associations, research companies or organizations related to homes or kitchens publish information—National Kitchen and Bath Association (NKBA), National Home

Builders Association (NHBA), National Association of Realtors (NAR) are some of them. Even manufacturers themselves will publish information on whatâ€s trending, as do the value-chain participants like architects.[4]

Keep in mind, basing your business strategy on trends alone is risky. While itâ€s important to know and understand whatâ€s trending, there are other factors that affect the trends themselves which should be part of your business strategy calculations. You should at a minimum ask yourself if you follow or create these “trends.”

For example, Table One presents the ranking of how companies involved in the housing market answered a question: What do you see are the biggest challenges facing your business in 2024?

Table One. Ranking of how respondents answered the question about the biggest challenges facing their  business in 2024?

Manufacturers see interest rates as their biggest challenge, while suppliers see labor and employee retention as the number one issue. In 2021, an Interline blog post – “77 Biggest Challenges in Business Today Boiled Down to One” showed us this:

Table Two: Results of compiling Googleâ€s responses to the question, “Whatâ€s the biggest challenge in business today?”

There are some striking similarities (the importance of the “right” people in the jobs) between the past and the present. In fact, there doesnâ€t seem much that changes in terms of business challenges does it? Note, too, that “trends” itself is never mentioned as a factor influencing business strategies either in the past or the present surveys. Does that mean we should ignore them?

The question is actually what “trends” are going to help my business when it comes to overcoming these factors? Is there a trend that will do this, or do I have to create one? While an individual company doesnâ€t have control over interest rates, one company began competing with banks who do by offering their own terms to key accounts on purchases in volume. In short, different ways should be examined on using trends or creating them to help a business create a business strategy.

Our conclusion at that time and this was the root cause of all business problems was: finding and retaining customers. Without customers, there is no business. The question is, who is your customer?

That is still the conclusion today…but itâ€s also the problem: customers have splintered into a wider variety of “types” than ever before. So before deciding on which trends to follow or create and which to ignore in your business strategy, it is important to review customer fragmentation and these “new” targeted groups.

We would be happy to help you. Contact us, or read Part 2 in this series: Cutting the Gordian Knot. If you want a convenient of the entire series in one pdf file, email inquiries@a-i-m.com. Thanks for reading!

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[1] The Bureau of Labor Statics for example publishes preliminary estimates of employment, hours, and earnings about three weeks after a reference period, but then revises them twice, with the second preliminary estimate published the following month and the final estimate published two months after the initial release. If you watch this, your head will spin, and make strategy development difficult (i.e., in May 2024, BLS revised the number of job openings up by 90,000 to 8.2 million, but revised the number of hires down by 101,000 to 5.7 million).

[2] Fast fashion is a business model involving quickly manufacturing and selling inexpensive, trendy clothing that mimics popular styles. Fast fashion brands — H&M, Zara, or Shein, — often base collections on styles from Fashion Week, celebrities, and social media. The goal is to bring new looks to consumers at affordable prices while demand is high.

[3] Perception we know is a mental impression and a way of interpreting or understanding something. Reality is the state of things as they actually exist. Weâ€ve heard the saying in advertising that “perception is reality,” and to a degree, that is especially true of trends.  Perceptions are variables in peopleâ€s minds. These “perceptions” influenced by thoughts, feelings, experiences, interests, and actually how we process information (i.e., via social media, etc.). Trends are more perception then reality, and as such they are shaped by guiding individuals to view things in a particular way. This is what advertising (and influencers, and social media participants) try to do. Storytelling, word choice, images – these all shape perceptions and trends.

[4] Genslerâ€s DIALOGUE newsletter is an outstanding example of information on trending in various markets like education, municipal or industrial.

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Knowing what trends that have emerged to split apart your customer base can help you shape your business strategy correctly by aligning or realigning product and services development. Letâ€s cut the Gordian Knot[1] and untie those trends to help your strategy.

Digital Transformation and Increased Buyer Sophistication.

B2B customers have increasingly adopted digital channels for research and then purchasing. For example, in the past architects or engineers would have to rely on reps for information; today, they hop on the internet and go directly to the manufacturerâ€s website[2]. This begs the question: what is the value of a sales rep?

Buyers become as a result more informed and expect seamless, personalized experiences akin to B2C. So one answer to the sales rep question is to provide that “personalized” experience (see How to Treat a VIC (Very Important Customer) Blog). Digital transformation has led to fragmentation based on digital behaviors, with some customers preferring online self-service models, while others still value traditional, relationship-based interactions. This makes the B2B strategy development more complex, often requiring two different approaches to be successful.

Industry-Specific Needs and Specialization.

B2B markets have become more specialized, with industries developing unique needs based on technological advancements and regulatory environments. In the value chain of participants[3], for example, each “player” has different needs, prohibiting “one size fits all” approaches of the past. In other words, you canâ€t “talk” to a contractor the same way you talk to an architect. Often, the most important step a B2B business can take is deciding which “participant” is the most valuable in his product being sold (and it is rare that only one will be the answer).

Besides, fragmentation has occurred by industry, creating distinct groups with highly specific requirements for products and services (i.e., fire protection engineers are an important subset of engineers and completely different than an electrical engineer). Or, the healthcare sector might demand highly regulated technology which only a few companies can provide, and even fewer install and operate, forcing the manufacturer to “create” his own workers that can be deployed into companies (this is SAPâ€s strategy) relationship-based interactions. This also makes the B2B strategy development complex, requiring different approaches to be successful depending on who you think is the customer.

Size and Scale of Operations.

The B2B market has fragmented across the size of companies, from startups to large enterprises, each with vastly different needs, budgets, and decision-making processes. This size-based fragmentation means businesses now need to cater to smaller businesses with flexible purchasing behaviors, as well as to larger corporations with complex procurement processes and longer sales cycles. If you take too long to turn the ship, the business will go elsewhere. In fact, our research has proven year-over-year that availability is one of if not THE key attribute for business to succeed.

One company for example, developed a software tool to navigate a complex law being enacted by a major city. That company – an engineering firm startup – wanted to use that tool as the “way in” to working for an owner of a building that had to meet those requirements. When a manufacturer of equipment stumbled on the tool, the manufacturer sought to engage the engineering firm in go-to-market strategy to white label the software. The startup engineering firm put up obstacle after obstacle on the pretext of “proprietary” programming and the deal fell through. In the meantime, a half dozen other “software” companies got into the game and commoditized the software for anyone to use.

Opportunities are lost this way when out-of-box thinking gets overlooked.

Remote Work and Decentralized Decision-Making.

The rise of remote work and decentralized organizations, accelerated by the COVID-19 pandemic, has shifted decision-making from a central authority to a broader range of stakeholders and actually changed the business landscape forever. This is especially true in the service sector. This trend has resulted in a fragmentation where buying committees are more diverse and geographically dispersed, requiring different communication strategies and more stakeholder engagement. Thinking for a moment that anyone of these “remote” character participants can disrupt a deal takes careful planning and strategy development.

For example, focus groups used to be extraordinarily expensive; you had to rent a facility, gather participants, feed them, hire professional moderators, etc. Today, you can pull together experts into a zoom room for a modest investment and get realistic and valuable information to help make decisions.

Sustainability and Corporate Responsibility.

Many B2B companies now place a high value on sustainability, ethical practices, and corporate responsibility, driven by both regulatory pressures and consumer expectations. In a blog — Finding a Working Definition for Sustaining Sustainability – the author noted there are a total of 931 bills going through state legislative bodies that contain “sustainability” in them according to BillTrack50, the legislative tracking software. A brandâ€s regulatory competence with sustainability should be embraced throughout the C-suite and integrated across functions according to sources, whether you are selling lighting, plumbing, HVAC or other building-related products. But how does the marketer navigate sustainability for the brand? What is the real working definition of the word? And, how is the company to accomplish this?

The focus on sustainability has created a segment of customers who prioritize suppliers and partners that demonstrate strong ESG (Environmental, Social, and Governance) performance. Targeting this “segment within a segment” can pay dividends (i.e., by examining specifications carefully usually shows that sustainability is not always top of consideration: performance is). However, when you can combine performance WITH sustainability, a B2B company can probably write its own ticket.

Tech-Savviness and Adoption of Innovation.

Adoption of cutting-edge technologies such as AI, IoT, cloud computing, and automation has varied widely across B2B customers and further fragment your targets. For example, IoT has played an increasing vital role in “smart” buildings; even in plumbing, products are more often being connected to “central control” in order to monitor not just performance but maintenance issues.

Businesses have become fragmented based on their technological maturity, with some eagerly embracing new innovations and others lagging behind due to cost concerns or lack of expertise. It is important for a B2B company to understand this both from a marketing and sales point of view.

For example, in a recent piece of research, AIM found there was no outstanding service excellence being practiced by any of the dozen manufacturers they studied on a consistent basis. They were all “average” at best, and below average for the most part. But, the research was able to bring together “innovative” and “tech-savvy” solutions that were, well, not so innovative and tech-savvy to bring about customer service excellence (i.e., non-automating the first phone contact with a customers paid dividends over automation). Often, research leads to such insights that help B2B companies become “trend setters” rather than trend-followers.[4]

Globalization and Localization.

While globalization continues, there has also been a resurgence in localizing business models and sourcing due to political and economic shifts (e.g., tariffs, supply chain disruptions). This further fragments a B2B strategy calculation in forcing companies to adapt local requirements (hardly a one-size-fits-all any longer). However, the ability to address this segment can have far-reaching profitability impact. For example, localization has led to geographic fragmentation, with some businesses looking for global solutions while others sought localized, region-specific providers. Sometimes, the global solutions actually can be changed, with slight modifications, to fit the local requirement.

Understanding these trends that have emerged to split apart your customer base can help you shape your business strategy. While taking apart the Gordian Knot of trends is difficult, sometimes it pays to just cut the knot!

We would be happy to help you. Contact us, or read Part 3 in this series: Anticipate, React, Adapt: Targeting B2B Customers into Relevant Groups. And for a convenient single pdf file of the entire series, email inquiries@a-i-m.com  Thanks for reading!

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[1] The Gordian Knot is an ancient Greek legend about Alexander the Great and a complex knot that tied an oxcart to a post in the city of Gordium, Phrygia, in 333 BC. An oracle prophesied that whoever could untie the knot would become the ruler of Asia or the entire settled world.  Many people tried to untie the knot but failed, until Alexander arrived and examined it carefully. With one swift stroke of his sword, he cut the knot in half and claimed the title of king of Asia. The story of Alexander cutting the Gordian Knot is used as a metaphor for a seemingly intractable problem that can be solved by exercising brute force, or “thinking outside the box”. This is exactly what B2B companies have to do today with the multitude of audiences they face.

[2] An AIM Snapshot report noted that a building professionals most often use a manufacturer’s website to get detailed product information, beating even Google searches. https://www.a-i-m.com/wp-content/uploads/AIM7103.17-Product-Info-Sources.pdf

[3] There are seven activities within the value chain in construction that have participants in them. These include: Raw Materials – the companies that make the raw materials for the products that feed construction of buildings and structures; Product Manufacturing – the manufacturers themselves and their processes that create products from the raw materials; Design and Engineering – The design and engineering participants (architects, engineers, construction managers, sales representatives, building owners, etc.) that utilize the products; Construction – the building of the structure itself, which includes the previous participants as well as safety regulators, municipalities, etc. ; Operations and Maintenance – These participants (often overlooked) play a primary role in the value chain, as they maintain the products that were intalled and often influence what WILL be installed; Demolition – people who may be responsible for demolishing the  older buildings before the new construction can begin; and finally, Renovators – industries and participants who work on existing structures to upgrade them.

[4] There were several “best of class” findings which included in this order:1) Answer the phone quickly. It is extraordinary how many companies slip up on this basic “innovative” technique of simply answering the incoming phone. 2) Give your name without being asked was another important one, because it PERSONALIZES the conversation! 3) Be polite and very professional seems basic enough, but sometimes is lost in the “boredom” of day to day answering the phone. 4) Be or seem very knowledgeable about the products/company sounds simple, but often forgotten. These were just some of the “innovative” findings of the research, which by the way, technology can help make even better.

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Alexander the great (besides cutting the Gordian Knot) was a master of strategy. He followed three principles: anticipate, react and adapt. This strategy can be followed for segmenting your customers into relevant groups as a result of the fragmentation going on around us.

Below are some key approaches to group and target your diverse customers:

By Behavior.

Segmenting customers based on their behaviors, such as purchasing patterns, digital engagement, and loyalty is an effect way to shape your communications. For example, you can implement and use analytics to track customer interactions across multiple channels, identifying patterns such as frequency of purchases, average order size, and engagement levels with content (e.g., webinars, white papers).

One company uses reverse IP lookup to understand how engineers interact with their website. They can capture the “journey” of the visit based on their companyâ€s IP address, and then going to the visitorâ€s website, make a fairly accurate estimate on “who” is downloading the specification. Cross tabulating with another database, the company can identify the exact project that the engineer is seeking their products for in the specification. The result is arming the sales representative with powerful information so that when he makes the sales call, he treats the engineer as a VIP (see earlier discussion).

Website behavior is only one example of targeting relevant customers on behavior (in this case, digital behavior). Besides, segmenting customers who regularly engage in digital content but have long sales cycles also provides valuable feedback on “how often” that firm is engaging with the websites. Remember, long-sales cycles are vastly different from those who rely on direct sales calls and shorter decision timelines.

By Firm Demographics.

Another method for dividing customers into relevant groups is to segment based on firm characteristics such as company size, industry, revenue, and location. This is a more traditional way of approaching your customer file, but is nevertheless very relevant, as big companies act differently than little companies.

In fact, if you examine your customer file, it probably follows the 80/20 rule not only in sales, but in these types of demographics (that is, 80% are small to medium size and only 20% are larger). Besides, grouping small and medium enterprises (SMEs) separately from large corporations makes sense as their procurement processes, budget priorities, and product needs are significantly different. Relevant strategy means deciding if you sell to a group or individual. This blog — Should I Sell to a Group or an Individual? – contains an excellent discussion (and actually is served up by Google if you ask, “should you sell to a group or individual” as the number one link (after their AI answer of course!).

To do this, you will need to collect and analyze data on target companies†demographics using CRM systems, third-party databases, or direct research. Many B2B companies face an almost insurmountable problem: diverse systems that donâ€t talk to each other (i.e., accounting doesnâ€t talk to billing which doesnâ€t talk to marketing). The way to solve this problem is to integrate these databases using Middleware, or if that is cost prohibitive, decide on systems like Salesforce, Apptivo, Sugar or others you can find listed as “best CRM software” on various websites.

By Needs.

Segmenting customers based on their specific needs, challenges, or pain points is yet another way to approach your strategy and determining which if any trends you should consider. This falls in line with what you know about value chain participants in our prior discussion (i.e., contractors have different pain points than architects).

One of the most important ways to achieve such segmentation is to conduct customer interviews, surveys, and data analysis on the results to understand the unique needs of different groups. You may think you know them, and your sales people may think they know them, but third-party verification often exposes gaps in understanding.

For example, one client believed his product was “totally understood” by his target market: airports. The product, a monitor for water, connected directly to the building automated control system. In our research it became immediately clear that airport managers (the target) were unable to “see” the benefit of monitoring water usage. Even if we embarked on explanations of water savings, run-on notification, etc. can benefit the facility, the targets simply didnâ€t see the monetary advantage such knowledge would mean to them.

This was because water was not a critical event in their opinions. Itâ€s a “nice to have” rather than a “must have” technology as far as monitoring it was concerned. And like all technology, it has to be used before it is accepted as “normal” or with a clear benefit thatâ€s easy to understand. The result of the research enabled our client to prepare a complete “education” program for this targeted group.

You can proceed by mapping out pain points related to operational efficiency, regulatory compliance, technology integration, or supply chain resilience to your targeted groups, and then look for commonalities across the audiences. It might be as simple as repeated exposures through marketing for the “break-through” moment.

By Persona.

This type of segmentation is interesting because it forces us to create detailed profiles of different buyer personas within a target group, such as decision-makers, influencers, and end-users. And while generalizations are sometimes dangerous, creating personas gives you clues on how to narrow your focus when you talk to the people.

Personas can be developed on a variety of people types, including job roles, responsibilities, motivations, and pain points. You should consider factors like seniority, department, and influence on the purchasing process sometimes as well.

For example, “consumers” is a wide segment and trying to build one persona for a “consumer” impossible. However, within “consumers” are demographics such as income levels, age, etc. “Architects” is just as wide a segment as consumers, but within “architects” are filters such as commercial, residential, specializing in education, or data centers.

One client wanted to know if his product (anti-dandruff chemically enhanced shampoo for beards) would be used by bearded men? 97% of men with beards said yes they would in our research. But more important, it didnâ€t matter what level of income the respondent was at; men from $50K to $200K per year would use it. Without drawing up personas and breaking down by income level ahead of time, this finding would have totally missed the mark.

By Lifecycle Stage.

Segmenting customers based on lifecycle stage for your company, from awareness to decision and post-purchase, is still another way to slice your data. In B2B, “lifecycle” may mean the productâ€s lifecycle, not the targetsâ€. For example, the installed based of any product is probably quite large, and there will be a mean-time-between-failure rate. Calculating such rates on the productâ€s lifecycle can mean sales opportunities.

For example, one client using reverse IP lookup noticed someone from a large campus of a major pharma company with many buildings visited their website and took one specific PDF file for a one product – nothing else. The product – a Concealed Vertical Rod Exit Device for a glass door – was probably one of many that the company had on their campus of buildings with many, many doors. The client held a sales meeting and we suggested contacting the VP of maintenance and to conduct a “door audit.” The audit would be comprised of going through all the facilities, documenting doors, their hardware, etc., and the producing a report. When the client asked what they could charge for that much less if the company would allow it, we replied: “Charge nothing.” The client was in disbelief, until we told them the strategy: Knowing when the products were installed, and doing a mean-time-between-failure study to anticipate replacement will intrigue the VP of maintenance, whom we had found on LinkedIn. Besides the “someone” who looked up that piece of information on a Saturday night wasnâ€t the VP, but someone who WORKED for the VP. There is no other possibility. So when the audit is finished, we told our client to simply present the audit which documents how often and when each component had to be changed to prevent failure. The company would then ask about the other hardware on doors not fitted with our clientâ€s hardware. We told our client to say, “Weâ€d be happy to replace them, but we donâ€t have that information.”

Iâ€d like to say that our client got the deal and ended up replacing all of the door hardware, but that didnâ€t happen. Our client (no longer out client) didnâ€t pursue the solution because it was out of his “sweet spot,” which was simply selling through distribution.

Often lifecycle analysis reveals such opportunities, and as the saying goes, “He who hesitates is lost.”

By using behavioral, firmographic, needs-based, and other segmentation methods, businesses can effectively target fragmented customers, ensuring that their marketing, sales, and service efforts are relevant and resonate with diverse audiences.

We would be happy to help you. Contact us, or read Part 4 in this series: Et Tu Trends? that discusses now that you have your market segments lined up, your strategies in place, whatâ€s next? And if you’d like a convenient pdf of the entire series, email inquiries@a-i-m.com. Thanks for reading!

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You may have heard “Et Tu Brute?” which were Ceasarâ€s dying words (And you too Brutus?) as Brutus joined the other assassins to kill Ceasar. The idea here is do trends kill you too?

Youâ€ve got your segments lined up, your strategies in place, whatâ€s next? Do you follow trends, not follow them, or create your own?

Perhaps the toughest question: from all the segmentation you just did, who is really your customer? And the real question on top of that is, how do you find and retain these customers? This is the only way you can find out if trends will kill you or not.

You see, itâ€s really not about trends, which come and go; itâ€s about who your customer really is. Trends may attract clients, maintain your current clients, but it is the blocking and tackling that keeps customers viable. You need to know, in short, more than your customers know.

Ultimately, the customer is most often the consumer, but a manufacturer sometimes doesnâ€t aim at the consumer. Besides, consumers also require a definition. While all facility managers are consumers, not all consumers are facility managers. Buying radio commercials on a baseball game to reach facility managers is a “spray and pray” strategy that will waste your money fast. Hereâ€s a better way.

After segmenting value chain participants like designers or architects (who follow trends closely), youâ€ll be faced with myriad possibilities to be looked at and that sometimes obstruct your own “perceptions.” In fact, the designers may very well lead a manufacturer astray since they are more “sensitive” to the comings and goings of trends.

Selling to showrooms or retailers as your target gives us a different set of problems. Besides taking us further from the consumer (end user), itâ€s hard to believe a retailer will “bleed” for a manufacturer. In customer service, for example, most showrooms will throw the consumer back to the manufacturer when things go South. Two-step and three-step distribution changes “who” the customer is as well. So. where to begin?

A better way is to do your own research, not just about trends but about segments and everything else discussed in this series and create your  own “benchmarks” on a wide variety of topics which are chosen based on various events or activity occurring in the market. These benchmarks can be used to compare with other reported industry trends, a companyâ€s internal analysis of trends, or other third-party information generated by other agencies such as the government or construction associations who produce trend information. Then, YOU decide to follow or create the trend!

Research: Why it is Important

Whatever research you conduct, there are other factors that influence a business strategy and whether sales might increase, decrease, or stay the same compared to the past year. Therefore, knowing the trends and topics in advance of these “other factors” currently impacting your business can be valuable in any companyâ€s strategic planning and in developing those segments discussed earlier. In other words, if youâ€re prepared with your own research findings, you can look at these “other” factors and actually shape them to your own advantage, whether you believe they will influence sales or not.

Find out about these factors in part 5 of this series: “Other” Factors Influencing What You Think Increases Sales. And if you want a convenient single pdf file of the entire series, email inquiries@a-i-m.com. And thanks for reading!

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Regardless of where you are in the discovery of who your customer really is, how your base has fragmented or the influence of trends on that base, you have to realize that there are myriad “other” factors that influence what you think you are seeing if your sales are going up. It helps your overall strategy development to consider them, so here they are.

Economic Growth

Most people believe that if the economy grows, consumer confidence and disposable income grows, leading to higher spending on products such as home improvements, recreation, travel or other goods. Part of the problem companies face is the divergent views about the economy.

For example, in a recent survey AIM conducted, 64% of the manufacturers believed their sales will increase in 2024. But is this true of all manufacturers or other types of companies, distributors/suppliers, retailers or others? Are companies just trying to be positive about their future position?

The answer to this question will always depend not only on the bottom-line actual sales your company is experiencing, but on what people are doing in the actual markets. Again, “who” is the customer and how are they influencing economic forecasts and our own judgments about how the economy will affect our businesses.

A USA Today survey, for example, found “Homeowners spent $463 billion on home renovations in the first quarter of 2024 — projections indicate that home renovation spending will continue to decline by $12 billion in the first quarter of 2025.”[1] And since the median sale price for an existing home in the U.S. hit a record-high $419,300 in May 2024, according to the National Association of Realtors (NAR), itâ€s probably safe to say people are going to continue to invest in their current homes, kitchens being the most room people will commit to remodeling.[2]

Based on that, the 64% feeling increases makes sense in that business. In fact, when the COVID-19 pandemic struck and lockdowns ensued, Americans found themselves with more time than ever to focus on their living environments. As a result, home remodeling in the U.S spiked. Annual spending on improvements and repairs to owner-occupied and rental properties between 2019 and 2021 grew 23% to $495 billion, according to a new study from the Joint Center for Housing Studies of Harvard University. Thatâ€s compared to the marketâ€s historical 4.4% average pace of growth.[3]

We know one contractor in Kansas who when COVID hit, went out and bought every bidet seat he could lay his hands on. When he saw the run on toilet paper, he realized quickly that people want to “feel safe.” He sold out his inventory in two weeks and made a handsome profit.

When a disruption in air travel occurred, we saw a coffee vendor bemoaning his fate as people waiting helpless in lines to get their tickets changed or board a plane, and no one was taking a chance of leave the line. We told him, “Bring the coffee to them,” and he looked at us like we were crazy. Today, you can see this happening sometimes when lines are created, with smart retailers offering people in line samples of what they sell.

The point is donâ€t always believe everything economists predict. They donâ€t live in the world you inhabit.

Housing Market Boom

An active housing market with increased new home constructions and home renovations can drive up demand for many types of products. However, rising prices of homes can constrain the boom. As of the second quarter of 2024, American households have a record high of $17.796 trillion in debt, averaging $104,215 per household. This is a 4.8% increase from the third quarter of 2022 to the third quarter of 2023. Who can afford a house?

Molly Grace and Laura Grace Tarpley make a good case in Will the Housing Market Crash in 2024 piece in Business Insider point out “The US is currently between 2.3 million and 6.5 million units short of a healthy housing supply…so even if something happened that caused a lot of homebuyers to drop out of the market, demand likely still couldn’t drop low enough to push prices down significantly.”

Thatâ€s assuming a lot. And thatâ€s probably why manufacturers indicated that the two most important challenges in their businesses are interest rates and inflation. Itâ€s always been about the money.

Besides, these “30,000-ft” level observations never bring the reality into the picture. There are so many adjustments to these numbers over time that the reality is never known[4] – except at the business level wherein the manufacturer operates. Perhaps the questions to be asking is within our own reach – that is, the sales databases within each manufacturers†grasp. Examining your customer file with RFM (recency, frequency, monetary) analysis in mind can reveal fresh insights into the future. Doing this type of analysis never fails to bring in additional ways to think about your strategies.

Home Renovations

Another factor influencing business strategy is home renovation, driven by an increased focus on home aesthetics and functionality, seen as a way to boost sales. This goes beyond what happened during COVID.

When it comes to consumers, the markets for several of the major product categories involved in kitchen remodels, for example, are expected to decline in 2023 and 2024, and then rebound from 2025 to 2027. This is according to the Home Improvement Research Institute. It includes paint and preservatives; plumbing fixtures and supplies; kitchen cabinets and counter­tops; and doors and molding. So if you are in that business, what should you do?

Since people are drawn to trends for a variety of reasons[5], one of the ways companies might take advantage is to become the trend setter and not just the trend follower.

For example, manufacturers may consider sponsoring a design contest that uses their products. Or consider partnering with one of the designers and set a trend yourself? Partnering with a designer (i.e., naming a line after the designer for example) might just be what the market is looking for!

This is true whether you play in the commercial OR the residential markets!

Partnering with a local media outlet to produce content for that outlet is another way to set the trends. Whether you know it or not, every manufacturer is in a content war not only with other competitors, but with the consumer themselves. Media outlets are desperate for content, and negotiating for example a monthly column on “trends” or sponsoring a blog on a particular topic or activating an aggressive social media blitz might be a way to boost your own visibility.

Sustainability and Green Building

An increased emphasis on sustainability and eco-friendly building materials might lead to higher sales if the company offers green or environmentally safe certified products (see previous discussion, Sustainability and Corporate Responsibility).

Marketing sustainability, encouraging recycling or other environmental practices that benefit both the environment and the communities can add a boost in business for any manufacturer. In todayâ€s environmentally conscious world where many companies have strong ESG (environment, social and governance) policies, it is important for a company to aggressively promote their involvement with any green or sustainability program. Participation in these programs can pay dividends in marketing your company.

In research AIM participated in, most often companies indicated they were involved in product recycling/re-use programs. This was followed closely by a manufacturerâ€s involvement in the local community service or charity programs.

Ashley Reichheld, John Peto, and Cory Ritthaler conducted research and concluded in a Harvard Business Review piece that after surveying more than 350,000 U.S. customers aged 18 to 98 to gauge their perception of brands†intent and competence, “Only sustainability stood out as a critical driver of intent.”[6] Other companies align with this conclusion (i.e., Bain & Company, McKinsey, PwC, etc.). Therefore, promoting your involvement in sustainability only stands to benefit your positioning.

Here are just a few ways to think about promoting the sustainability side of your business.

• Highlight Sustainable Practices. Transparent Sourcing: Clearly communicating the sustainable sourcing of your products means identifying and emphasizing where and how materials for your product are produced or cultivated. Do you showcase energy-efficiency or material sources used in the manufacturing processes on your website? Have you communicated your waste reduction initiatives? What about the use of non-toxic materials? Or your recycling efforts? All of these efforts help position your company in the minds of your prospects and customers.
• Certifications and Standards. Obtain and prominently display certifications from recognized environmental organizations. Ensure compliance with such environmental standards and regulations, and make this information easily accessible to customers. There are several organizations that are actively involved in “green building” efforts.
• Educational Content. Creating content that educates consumers, customers and prospects about the benefits of the companyâ€s sustainable efforts is an excellent way to “spread the word.” For example, you can publish detailed reports on the companyâ€s environmental impact, sustainability goals, and progress toward those goals. Send these to your local community media outlets, as well as customers.

These are just a few ways to heighten awareness about your sustainability initiatives. Finally, encourage and act on customer feedback regarding sustainability, showing that you value and respond to their concerns.

Government Incentives

Tax incentives or subsidies for home improvements and energy-efficient renovations could stimulate demand for many products. For example, updating a kitchen can save money on taxes as this is considered a capital investment. The tax break from a kitchen remodel will come in the form of a tax basis. That is, consumers wonâ€t see savings on a home improvement until they sell their home. But, as the Cabinet Coatings of America points out, not seeing a return until the home is sold shouldnâ€t stop the investment in home improvements.

The Inflation Reduction Act of 2022 empowers Americans to make homes and buildings more energy-efficient by providing federal tax credits and deductions that will help reduce energy costs and demand, as we transition to cleaner energy sources. Through 2032, federal income tax credits are available to homeowners, that will allow up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent.

The National Association of Realtors lists 7 Types of Tax-Deductible Home Improvements for your review – all giving you ideas to consider in your own positioning of your company.

Supply Chain Improvements

If the company has improved its supply chain efficiency, leading to faster delivery times and better customer service, it might see increased sales due to higher customer satisfaction and repeat business.

During COVID, Just-in-Time became Just-in-Case, where people bought excess inventory because of the extreme uncertainty of that era. Having products when people want and need product is the secret of W.W.Graingerâ€s success. They charge a premium price for items that you really canâ€t find anywhere else. And while you may think any “product is just a product”, the fact is that it is marketing that makes the product more than a product.[7]

How many case histories do you have on your website? How many interviews have you done with satisfied consumers WITH their designers? And while you might ask, “what has this to do with supply chains,” the answer should be obvious: everything.

Giving people what they want means having the resources to do that, which is the central issue with supply chain. And while only 5% of manufacturers surveyed considered supply chain a “big challenge” it  doesnâ€t mean you canâ€t keep it in mind in your strategic planning. Things change, and disruption in the chain can cause more harm than you might suspect.

Find out about these factors in part 6 of this series: “Other” Factors Influencing What You Think Decreases Sales. And thanks for reading! And by the way, if you want a convenient single pdf of this entire series, email inquiries@a-i-m.com and request it.

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[1] Home renovation statistics and trends: Our 2024 report by Rebecca Henderson Updated Jul. 19, 2024

[2] Housing market predictions for the rest of 2024 by Mia Taylor and Michele Petry, Bankrate.

[3] Home remodeling exploded as a result of pandemic by Dylan Croll·on Yahoo Finance, March 27, 2023

[4] Witness the recent 818,000 adjustment downward in job numbers for the Bureau of Labor Statics. In other words, almost a million jobs were reported but didnâ€t exist.

[5] Reasons for liking a trend include social acceptance, fear of missing out, desire for novelty, status, sense of belonging and more.

[6] Research: Consumers†Sustainability Demands Are Rising by Ashley Reichheld, John Peto, and Cory Ritthaler in Harbard Business Review, September 18, 2023.

[7] At the time of this writing, reports of vessels continuing to use the Cape of Good Hope as an alternative global shipping route in light of Red Sea disruptions have appeared. Shipping lines are re-routing towards the Cape of Good Hope and will continue to do so until the Red Sea becomes safe to transport goods again. Due to the ongoing conflict in the waters, commercial vessels are being forced to take longer routes to avoid disruption. In March 2023, shipping a 40-foot container cost around $3,162, which was almost double the price from the previous year. By January 2024, the price had increased to around $3,964, and in June 2024, it reached over $5,800, the highest price ever recorded. However, as of July 25, 2024, the price had decreased to $5,806, which is still 268% higher than the same week in 2023.

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