For the first half of 2023, the consensus on advertising trends is all but unanimous. It’s been a tougher year than a lot of industry professionals thought it would be, and it certainly doesn’t live up to the rosy expectations for growth from two or three years ago. Inflation, supply-chain challenges, interest rates, and more recently, the emergence of game-changing artificial intelligence, had a dampening effect on spending in many sectors.
Now that’s changing. With many of those macroeconomic concerns easing, ad spending is returning to a more typical rate of growth for the rest of the year, according to a mid-year forecast from Group M, the world’s largest media-investment company. Group M predicts ad spending will grow to 5.9% this year, for a total of $874.5 billion, according to the firm’s report.
Part of the anticipated growth can be attributed to the Biden Administration’s $1 trillion infrastructure law, of which $108 billion is aimed at public transportation.
Jared Shilhanek.
One industry sector, public works, is among the biggest beneficiaries. With ad spending in that section of the economy going gangbusters, Fox Tales decided it would be a great time to learn more. So we caught up with our friend Jared Shilhanek, chief growth officer of the American Public Works Association, for his take on industry dynamics. Fox Associates is APWA’s longtime advertising-sales partner. Here’s a transcript of our conversation, edited for brevity and clarity.
Fox Tales: Nationwide, how are public works teams performing this year?
Jared Shilhanek: I think they are stretched thin. They are maintaining high levels of service despite workforce recruitment challenges and the added impact of the silver tsunami [the term refers to an aging population near or at retirement]. Additionally, there is a continued effort to improve, streamline, and take on new projects.
Fox Tales: What can we attribute this to? Catching up from the pandemic? The new infrastructure law?
Shilhanek: Public works was actually able to make a lot of progress in infrastructure maintenance and projects during the height of the pandemic due to decreased impact of construction areas on citizen travel/movement. The new infrastructure law is certainly adding to the challenges. While exciting, the urgency to take advantage of the opportunity increases the feeling of being stretched thin as well as the challenges of accessing resources to complete projects (engineers, consultants, contractors, materials, etc.)
Another factor to consider is the ever-present role technology plays in our members’ ability to do their jobs. Advances in the field and security issues (cybersecurity) are impactful and are just a few of the reasons APWA identifies key technologies essential to public works responsibilities each year through our Top Trending Technologies and certificate programs.
Fox Tales: Are any particular segments driving the ad growth? Municipal PW? State DOTs? Interstate highways?
Shilhanek: We are seeing that the growth is fairly universal across all segments of public works.
Fox Tales: Same question for categories: Materials? (cement, steel, asphalt, etc.?) Equipment like plows, steamrollers, pavers? Specific projects, like storm drains, sanitary sewers, sewage treatment plants, roads, municipal or other public buildings?
Shilhanek: Year-to-year, we’re seeing increases in the number of exhibitors we see at our national conferences and in advertising. The following examples are just from our PWX exhibit program, but we feel they are a great sample of what we’re seeing in other areas across the association:
- Cleaning – 63% increase in exhibitors vs. 2022.
- Pavement – 36% increase in exhibitors vs. 2022 (130% increase in pavement preservation exhibitors led this category to such an increase).
- Recycling equipment – 63% increase in exhibitors vs. 2022.
- Roads/markings and equipment – 100% increase in exhibitors vs. 2022.
- Safety – 37% increase in exhibitors vs. 2022.
Fox Tales: What might I have missed here?
Shilhanek: I think the innovative practices, vendor/user relationships, networking, and advertising opportunities that APWA offers our members in both the public and private sectors helps them with all of the challenges they are facing and makes the case for membership and engagement at both the national and local levels.