Market & sales forecasting
Do you need to produce a sales or market size forecast on a regular basis?
If so, then developing a robust forecasting model will improve the accuracy and reliability of your projections. It will also give you a more solid foundation for your forecast than “gut feel” and can also be used to provide the starting point for further strategic discussion.
At Leading Edge we can work with you to develop your own sales forecasting model that can look at the effect on your sales of a range of market scenarios such as different levels of housing starts, GDP, construction output or new orders.
Click here to go to our free downloads section where you can download useful documents on
- why sales forecasting in the construction sector is so important
- an example of a sales forecast model
Forecasting – how to approach it
There are three main types of forecast models which can be used separately or in combination:
- Causal forecasting models – based on the relationship between the variable to be forecast (eg sales) and an independent variable (eg public sector new orders, rate of interest or construction output). Actual or forecast economic and market data can then be used to predict future sales levels or market size changes.
- Time series models – use historical data as a means of forecasting future outcomes and assumes past patterns in data can be used to forecast future data points.
- Qualitative forecasting – based on the educated opinions of selected persons. Information can be collected, for example, via panels or questionnaires from selected respondents with a knowledge of the market, sector or company
By going through this process it will take away a lot of the subjectivity involved in forecasting and help you identify those parts of the business likely to grow in the future and those parts in decline. The market or sales forecast model will help in the budgeting process and in the allocation of sales and marketing resources to different parts of the business.
Key deliverables from a sales forecasting project
For the majority of our clients we provide the output in a MS Excel format, accompanied with a presentation demonstrating how the model was built up and the logic behind it.
We will also supply detailed instructions on how to use the model, typically incorporated within MS Excel. This approach allows our clients to look at various “what if” scenarios for the market for the next time period and assess the impact on their sales.
Our forecasting experience
- We have 20 years experience in developing causal, time series and qualitative forecasting models for the construction industry. We have our own specialist forecasting software to help us do this but we can also develop models within MS Excel.
- We have developed bespoke market and sales forecasts for a number of clients, both regional and multinational, in the construction and building materials sector. Our forecasting experience includes model development for a company’s total revenue and also down to individual product line.
- We also produce a 5 year construction market forecast every 6 months that examines actual and forecast output by sector. You can find more information on this on our construction output forecast webpage.
Our track record
Visit the About us area to find out more about our market & sales forecasting experience. This includes past clients, case studies and testimonials.
Sarah Keedy, Marketing Director, Speedy HireLeading Edge developed two forecasting models for us, the first to forecast total UK construction output by sector and the other to forecast our own sales by product group. We were extremely pleased with the work, the models give us more confidence and we use them in our business planning. We would definitely recommend using Leading Edge, they have added significant value to our forecasting process.