Rising Construction Costs? Rise Your Efficiency – This is How

Dec 7, 2023 | Ecommerce, JustSell B2B

building merchants

In recent times, the construction industry has been facing a formidable challenge in the form of price increase in building materials, transportation, and skilled labour.

According to the latest analysis of data from EU member states, Eurostat, and the UK Department for Business, Energy, and Industrial Strategy, the cost of construction materials has surged by a staggering 60% over the past seven years. This significant spike has sent shockwaves through the entire supply chain, impacting builder’s merchants in profound ways.

The Supply and Demand Disconnect

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A recent survey conducted by the National Buying Group has shed light on a concerning trend within the construction industry – a ‘’service level disconnect’’ between builder’s merchants and suppliers. The construction supply chain relies heavily on building materials, serv

ing as its essential core. Any disruption in the punctual delivery of these materials can create bottlenecks in ongoing projects or result in unwarranted expenditures on items that may go unused.

One of the critical challenges arising from this disconnect is overordering, a common concern in supply chain and inventory management. With the industry grappling with numerous supply chain bottlenecks, the fear of running out of high-demand inventory looms large, intensifying the struggle for builder’s merchants.


Streamlining Operations with Technology

Faced with the impact of price inflation, builder’s suppliers are compelled to reduce costs.
Implementing an construction ecommerce website is not only a way to bulletproof your construction business (read more about why e-commerce is important for construction industry here), but it can also play a significant role in helping building suppliers alleviate the impact of inflation costs.

Why should a construction merchant invest in ecommerce software?

  • It supports dynamic pricing strategies, allowing merchants to adjust prices in response to changes in market conditions, including inflation. This flexibility enables merchants to maintain competitiveness while adapting to cost increases.
  • It includes inventory management features that automate tracking and restocking processes. Accurate inventory management helps to prevent overstocking and minimizes holding costs.
  • It has CRM tools that help merchants manage customer relationship effectively. By understanding customer preferences and behaviour, merchants can tailor their offerings and marketing strategies, potentially increasing customer retention and loyalty.

In the face of rising construction costs and supply chain challenges, the construction industry is at a crucial juncture. Selling building materials online through Ecommerce emerges as a vital solution. It Offers a robust defence against inflation and a strategic asset for builders’ merchants. By using dynamic pricing and efficient inventory management, technology becomes a crucial foundation for staying strong in this changing environment. Adopting this technology is essential for long-term success.

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