Design in the primary industry, construction, utilities and communications sector

The headline

Businesses in the primary industry, construction, utilities and communications sector emerged as the least positive towards design.

Just one in 20 businesses in this sector think design is crucial to their success. And half don’t commission any design services, compared to one in three across other sectors. This suggests that design’s day-to-day role in this sector is limited.

Despite that, there are signs that design’s wider importance is recognised. Two out of three businesses agree that design is integral to the UK’s economic performance. And 56% believe there’s a link between design and profitability.

The details

How do businesses in this sector see design’s role?

Two thirds (67%) of businesses in the primary industry, construction, utilities and communications sector feel design has some role to play in their operations.
UK average 76%But 43% think design has a limited role.Businesses here are less likely than those in other sectors to see design as integral or significant.

Only 5% of businesses in this sector think design is crucial to their success. More traditional factors are more important. For example, 81% rate financial management as crucial.

Despite this, the sector’s businesses do value design’s role in a wider economic context. 64% agree that design is integral to future economic performance, and 56% believe there’s a link between design and profitability.

Do businesses in this sector believe it’s worth investing in design?

Primary industry, construction, utilities and communications is the sector least likely to invest in design. Over half (58%) its businesses don’t invest at all.
UK average 43%

In addition, businesses overall are nearly twice as likely to be increasing their investment. For example, 44% of manufacturing businesses and 39% of property, finance and business services businesses have increased their design investment, compared to only 17% of businesses in this sector.

We asked businesses whether they thought it was worth investing in design in their sector. Businesses in the primary industry, construction, utilities and communications sector were most likely of all businesses to say no. One third took this view (34%), and almost as many didn’t know (29%), suggesting that there may be little knowledge of the benefits of design.

One in three businesses (30%) in this sector believe that, over the past decade, design has become more important in helping them compete. The UK average is 46%.

How do businesses in this sector use design?

Communications design is the most popular service among businesses in the primary industry, construction, utilities and communications sector. A third (33%) use it.
UK average 52%

But this is still well below the UK average. In fact, businesses in this sector use all types of design less than those in other sectors.

Half the sector’s businesses don’t use any design at all. This compares poorly to just one in five manufacturers.

Businesses in this sector mostly apply design to externally facing functions (such as external communications and branding), and marketing.

But again, they’re less likely to use design in their business than others. The gap in applying design to marketing, new product development and internally facing functions is particularly large.

Do businesses in this sector use designers?

Half of businesses in the primary industry, construction, utilities and communications sector do not employ designers in any way (52%). That’s more than the UK average.
UK average 45%

When they do employ designers, it tends to be by bringing them on board as internal employees, rather than having a design department or commissioning externally.

How many businesses in this sector have developed new products or services?

Just over a quarter (27%) of businesses in the primary industry, construction, utilities and communications sector have developed a new product or service in the last three years.
UK average 40%

How do businesses in this sector compete?

One in ten (9%) businesses in primary industry, construction, utilities and communications compete on innovation.
UK average 16%

Again, this is below the average for businesses overall. Yet, like those in other sectors, businesses here are most likely to compete on the added value of their products or services (79%).

How do businesses in this sector think their customers make buying decisions?

Businesses in primary industry, construction, utilities and communications think 80% of their private sector clients and 74% of their public sector clients decide to buy because of the added value of their product or service.
UK averages 81% and 74%

They think that only 9% and 8% of these clients respectively buy because of innovation. That’s less than the UK average (14% and 19%).

Sector portrait

In 2004, the primary industry, construction, utilities and communications sector’s turnover was £454billion, up 6% on 2003.

There were 3,272,000 people working in the sector, in 313,853 businesses. These were made up of:

• Agriculture, hunting and forestry – 19,875
• Fishing – 3,827
• Mining and quarrying – 1,209
• Electricity, gas and water – 437
• Construction – 209,145
• Transport, storage and communications – 79,360.

Our National Survey of Firms shows that 72% of businesses in this sector increased their turnover in 2004-05. Even more, 83%, intended to grow in the next financial year.

More sector information is available from the Office for National Statistics.

How can I use this information?

If you’re a business intermediary

This report could help you persuade more businesses in this sector to consider competing through design.

Compared to other sectors, that message hasn’t resonated here yet. Only a third of businesses agree that design has become more important to their business’s competitiveness. In other sectors, such as manufacturing, that proportion almost doubles.

With well over half of businesses in this sector not investing in design, those that do could have a point of differentiation. Other parts of our survey demonstrate the link between investing and bottom line gains, in particular, What design can do for your figures and The link between design and better business performance. These could help you make the case.

If you’re a design business

Of all the sectors, businesses in this one are least likely to employ designers, either within their business or externally commissioned. However, there should be some opportunities for you in this sector.

All design services are under-used by businesses in this sector compared to the UK average. Communications design, for example, is used by a third of businesses. At least half of all other businesses use it.

To awaken demand for your services, you could discuss with clients the areas where this sector is behind the UK average. For example, they’re much less likely to apply design to marketing. Only 31% do so, compared to 48% elsewhere. Might changing perceptions about the role of design help the sector grow?

If you're a design educator or student

Comparing this sector with those which are more positive could generate worthwhile study. Over time, will its relatively lukewarm attitudes to design affect competitiveness and performance?

For students interested in a career in design, it’s worth familiarising yourself with the primary industry, construction, utilities and communications sector. Although it currently uses design significantly less than others, that could mean there’s more potential for growth and new opportunities.