Examples of Our Work
The America construction market is a $1B business. It is also a leading indicator of the health of the economy - the first industry to decline as market downturns approach, and the first to turn up as the economy begins to recover. Construction product manufacturers are, therefore, perpetually in a tough market.
PerformaMetrics built a dashboard for one manufacturer to measure and monitor their total dollar value and square foot area of market opportunity for the upcoming 12 months. Data is automatically updated each month so the company has a rolling 12-month advance look at their marketplace.
Internal sales data is integrated into the dashboard with the external construction market data so management can measure market opportunity, market penetration, and each salesperson’s performance relative to his/her territory’s opportunity.
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A large manufacturer in a commodity market has a 16-month buy/build/deliver product cycle. Their profits are exclusively defined by how well they predict the market at least 18 months in advance so they can manage that 16-month cycle.
They do extensive market research and diligently attend to economic expert opinion and forecasts. Despite this, in the past 4 years they failed to predict both a down cycle, leaving their capital tied up in an overstock of expensive metal supplies, and an up cycle, where they could not purchase sufficient supplies and build fast enough to meet orders. Frustrated at having lost money in the first instance, and lost opportunity in the second, they asked PerformaMetrics to come up with a better way of predicting their market.
We did extensive analyses of past markets, current economic research findings, and the relationship of lag/lead times of our customer’s product to overall market measures. We developed an algorithm that predicts their order volume 24 months in advance. A second algorithm alerts management of overall economic swings in the next 12-18 months with a historical track record of 92% accuracy.
The data that drives the algorithms is updated quarterly, and has proven to predict product demand 2 years in advance within 4% of actual demand. The algorithms are highly proprietary and the core of essentially all executive management decisions - strategic planning, capital acquisition, and allocation of resources.
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