By the time you read this column, the comment period on the fourth draft of MasterFormat (MF) will have just ended. The proposed draft, expected to be finalized in 2004 (MF 04) will replace the current edition issued in 1995 (MF 95). The revision process has been fraught with controversy, requiring countless hours of effort on the part of the MasterFormat Expansion Task Team (MFETT) and those providing them with valuable input.

For most of the construction industry, however, the effort of integrating a new MasterFormat into our daily routines is just beginning. This column discusses the impact of the revised document on building product sales and marketing.

What has changed?

MasterFormat is an indexing system for ‘units of work’ in construction. It is used to organize specifications, product information, and other construction-related data, and is one of CSI’s greatest contributions to the improvement of communication within the industry. Published in 1995, the current edition organizes construction work into 16 divisions; each one further divided into sections designated with a five-digit number.

Significant changes in the new edition include:

Training and customer service

As a manufacturer or sales representative, your first step is to familiarize yourself with any changes to the MF section numbers pertinent to both your products and competing materials or systems.

Many ‘architectural’ products in Divisions 3–14 will continue to be specified in familiar sections, albeit with section numbers expanded from five to six digits. For example, Draft 4 morphs Precast Concrete from the existing Section 03400 into Section 03 40 00. Other products—especially those related to engineering trades—have been blown into terra incognito. For example, plumbing fixtures have been moved from Division 15 to to the new Division 21 and Section 22 40 00.

Regardless of whether the changes affecting your products are small or dramatic, you will have to train your organization to understand and make effective use of the new standard. Your teams in sales, customer service, project management, and distribution, in particular, should be familiar with and prepared for the changes in MF before they confront them in the marketplace. It would be embarrassing for your sales rep to learn about changes to MF from his or her clients.

It is far better for your reps to be proactive in informing customers about these changes. The revised MF could even be a potential door-opener for a sales rep. He or she could call a client and say, “I don’t know if you have heard about the recent changes to MasterFormat, but I was hoping I could stop by your office next week to show you the preparations we have made for servicing your account during the transition with as little inconvenience as possible.”

Product literature

Updating product literature and websites will be one of those ‘little inconveniences.’ Some firms will rush to revise their literature in an attempt to be the first in their niche to convert to the new MF numbers, but this expense only makes sense were it part of some special promotion or repositioning effort. In most cases, a more conservative approach is adequate. For example, literature can be revised a piece at a time as documents are reprinted, and stickers can be placed on catalog covers or the spines of existing binders to identify new division or section numbers.

For most of this decade, it will probably be necessary to identify both the new and old section numbers for the convenience of clients who are also trying to maneuver through the changeover. For example, a brochure might read: “Our fire extinguishers are typically specified in Section 10 44 00 (10520 per MasterFormat 95).” Be wary about prolonging your conversion; within three to five years, literature listing only MF 95 numbers will be seen as dated and possibly obsolete.

Strategic considerations

In addition to these pragmatic considerations, you must stay alert for possible strategic changes in your channels of distribution, or other shifts in market dynamics. They may be subtle and unpredictable, but these changes will occur. Just as some rep agencies handle ‘Division 7,’ the expanded MF will spawn agencies, distributorships, and contracting firms clustered around some of the new or revised divisions or sections. Sooner or later, for example, some geotechnical firm one will register the ‘www.division35.com’ domain name (if it hasn’t happened already).

The MF revisions will enable building product manufacturers to tap even more deeply into the power of data base marketing. The increased quantity of section numbers within MF will enable sales data, industry trends, and the specification patterns of individual customers to tracked with greater precision, especially when coupled with the continued growth of computerized sales automation systems . In addition, the concurrent development of the OmniClass™ Construction Classification System will accelerate the growing importance of databases in all stages of a building’s lifecycle, from design documentation to construction and facility management.

Another strategic opportunity offered by the revision process is the chance to create a MasterFormat section number that improves the positioning or market visibility of a particular product category. For example, MF 95 does not identify a section for venetian plaster. Several players in the venetian plaster industry took advantage of the revision process to lobby for an assigned spot for their product in MF 04. If successful, it will be easier for specifiers and builders to find suppliers and to specify and bid the work. Moreover, the award of its own MF number will enhance the market visibility of venetian plaster and reinforce the notion the material is an established part of the architectural palette.

With the current MasterFormat revision process presumably approaching an end, manufacturers who have not already completed their lobbying may have missed this opportunity. Have no fear, though... judging by previous revision cycles, you will have another chance when MasterFormat gets revised in another five to 10 years.

Coping with change

Even though major stakeholders like the Army Corps of Engineers, MasterSpec®, and Sweets’ catalogs endorse the proposed revisions, market acceptance of MasterFormat is not guaranteed. The skeptics ask, “Who will bear the cost of revising my office master specifications and the bidding errors that will almost certainly occur during a transition period?” but as many firms discovered during their preparations for the prophesized ‘Y2K Bug,’ a major change does not inevitably lead to chaos.

The MasterFormat revisions can, instead, be used as the context by which it is possible to update and improve outdated products and processes. For manufacturers and sales reps, you can visit design offices and offer to help update their master specifications. They can review their lead-tracking procedures—such as subscriptions to construction news services—to ensure they are getting the right types of information for fueling sales efforts. As with any change in the marketing environment, businesses looking for opportunities in change will outperform those seeing only obstacles.

Michael Chusid, RA, FCSI, CCS, is head of Chusid Associates, a sales and marketing consultant specializing in the building products industry. He is available to explain MasterFormat at your next sales meeting and can be reached at 818-774-0003 or via e-mail.

Notes

*Article has been revised to reflect Section numbers included in MasterFormat Draft released 6/8/04. Copyright 2004 Michael Chusid