The construction, engineering and building & industrial materials industries have a vital role to play in the global post-pandemic recovery of the economy. The group represents 13 percent of global GDP. In today’s blog, we will explore five trends to help companies prepare for a different future.
Trend one - DIY projects boost the building supply industry
The rise in work from home and a stagnant housing market has led many homeowners to invest their money in do-it-yourself (or DIY) home improvement projects. As homeowners purchase DIY supplies such as flooring products, plumbing fixtures, paint, and hardware from their local Home Depot or similar businesses, wholesalers are experiencing a boost in their sales revenue.
Trend two - Increased digitization
Builders and engineers are using 4D and 5D simulation to replan projects and re-optimize schedules. company owners are using online channels for monitoring their employees’ well-being through apps, ordering construction materials, managing scarce resources more accurately, and maintaining cash flow.
Trend three - Labor shortages
The industry faced a shortage of skilled labor before the crisis. With ongoing physical-distancing measures and restrictions on cross-border movement of labor, skilled labor shortages are becoming more pronounced. The case for off-site construction rises and the use of more digital tools that are proven to increase productivity will become even stronger which loops back to the digitization trend above. Construction firms will increase the use of project management tools, data analytics, simulation and real-time progress tracking.
Trend four - Wholesalers face competition
Retailers continue to purchase directly from manufacturers, completely bypassing the wholesalers. It is therefore critical that wholesalers scrutinize their prices and improve their service performance. Many wholesalers offer complex rebate programs. These programs make it difficult to have a clear picture of the business’ bottom line. Having a factual understanding of your bottom line is essential to setting profitable price levels. Wholesalers who invest in software to perform this analysis save both time and money, while avoiding costly pricing mistakes.
Trend five - Continued move to sustainability
Some Governments are stimulating the economy by encouraging construction to meet carbon reduction targets—for example grants to retrofit houses to improve energy efficiency. Such incentives might be a combination of policy changes and direct public investments. There will be stronger demand toward more sustainable buildings and communities to promote healthier lifestyles.
Today’s building and industrial businesses can no longer afford to rely on outdated technologies or practices they’ve inherited through generations of management. It is essential that these businesses have the ability to stay on top of new challenges. Those that do not are at risk of being left behind in today’s highly competitive and rapidly changing marketplace.
Business intelligence software will help building and industrial materials businesses discover new sales opportunities, optimize inventory management, and see a clear picture of their business’ bottom line.
Phocas Software has been enabling building materials retailers, wholesalers, and manufacturers to make full use of their business’ data, save time, and improve profitability for more than decade.
For more information on the ways that Phocas Software can help building products suppliers download our free Building Industry eBook: 4 ways to change with data