In today’s blog, we will explore five trends in the building and industrial materials industry.
Trend one - DIY projects boost the building supply industry
Due to the rise in housing costs, many homeowners are investing their money in do-it-yourself (or DYI) home improvement projects. According to IBISWorld, this has contributed to growth in the building industry over the past five years. 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 salesrevenue.
Trend two - Demand for ‘green’ construction materials
A growing trend in the construction materials industry is the demand for sustainable and environmentally friendly products such as bamboo flooring, low or no VOC paint, and products made from recycled materials, according to Global Industry Analysts, Inc. This trend is developing in both the commercial and residential sides of the industry. Building and industrial material manufacturers, suppliers, and retailers must prepare to meet this growing demand to remain competitive. By maintaining sufficient stock levels of these products, you ensure your orders can be filled and delivered on time.
Trend three - Trends toward urbanization
A significant trend that is impacting the building and industrial industry is the ongoing urbanization of many parts of the world. Not only does this trend affect the types of buildings that are being constructed, it also dictates the infrastructure required to support these concentrated populations. For instance, the increased pollution in cities worldwide has become problematic. In an effort to reduce pollution, demand for environmentally friendly materials is likely to increase as outlined above.
Trend four - Wholesalers face competition
IBISWorld reports there is a trend of retailers purchasing 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 - Adoption of modern technologies that fuel growth
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 identify the newest trends as they emerge. Those that do not are at risk of being left behind in today’s highly competitive marketplace.
By Aust Building Supplies , collected from Phocas 2018