Why is the Construction Industry Growing? Impact of Ecommerce on Building Material Companies   

Oct 19, 2022 | Ecommerce, JustSell B2B

why is the construction industry growing

As per the Insurance Business America, the global construction industry growing rate is expected to reach $14 trillion till 2023. In %, from 2022-2023, it’s 42% growth as per the prediction of CAGR.  Moreover, as stated by FreshBooks, the average profit margin in the construction industry is 4.16%, which is the highest profit margin as compared to other industries. As per these figures the residential and commercial construction industry is one of the most successful and highly growing industries in the market. Here’s a construction industry analysis of factors that have contributed to the successful growth of the construction industry. 

Growth of Housing Societies  

As per the Statista, over 7,711 societies were started in the UK last year, which is the highest number of new societies in history. With the increasing number of new housing societies, it creates a pool for the construction companies to start new contracts and businesses with societies. This eventually adds billions of $ in the net revenue of the construction industry.  w construction industry is growing

Expansion of Commercial Properties 

MicroBizMagazine reports that 670,000+ new startups were launched in the UK during 2019-2020. Of course, these companies must require an office. If at least 5% of companies build a new office, this is about 33,000 new commercial construction contracts in the UK in a single year.    This estimation shows the future of the commercial construction industry. And it’s clear that as long as the new startups are starting, the construction industry will progress  proportionally to them. 

Increasing Number of Residential Properties in UK 

According to Mansion Global, 19.3% of increase was observed in the residential properties in the UK and Wales. This increase isn’t so significant, but still adds up on the successful growth of the construction companies. This 19.3% increase is majorly caused by the expats in the UK that includes the construction of new apartments, houses and semi-commercial buildings.   impact of e commerce in construction industry

Impact of Ecommerce on Construction Industry   

70%. After the Covid-19, 70% of construction companies have shifted their offline business model towards a digital business model or you can say they have moved their business on Ecommerce platforms. Below is the detailed section on Impact of Ecommerce on Construction Industry: 

Elimination  of Geographical Barrier 

The Ecommerce construction model has eliminated the geographical barrier from the market. It targets a wider segment of customers than a geographical restricted customer base. It allows the customer to order their preferred construction material online without physically visiting the store. And for the business owner, this digital transformation through a 3rd party Ecommerce construction platform earns them a customer who’s located far miles away from them that wasn’t possible in the off-site business model.  Take the 1st step of digital transformation of your construction business by booking a trial from here. 

Ease of Management 

why there is growth in construction business

why there is growth in construction business

When you shift your business from off-site to on-site through a platform, it gives you the ease of management. Platforms like JustSell don’t just let you open a digital store, but a complete CRM system to manage your orders, inventory, customer interaction, shop optimisation and other essential Ecommerce solutions to make your digital business uncomplicated and successful.  

Elimination of Physical Stores 

The Ecommerce construction website’s are eliminating the physical stores . It doesn’t require the owner  to have a dedicated showroom or store. All the business in an Ecommerce can be managed digitally through a browser (CRM platform). This eventually saves the rent and other miscellaneous costs associated with the shop that ends up with higher % of profit on per sale for the owner.   Increase your profit by choosing ecommerce construction website platform for your business 

More Business Exposure 

growth in construction business

construction business

With transforming your business into a digital platform, the business owner gets a better exposure eliminating the barriers of geographical restrictions. Businesses that choose an Ecommerce business model have more potential than an off-site business. It includes digital marketing, SMM, SEO, CPC and digital advertisements on different platforms. While on an off-site business model, these feature are not available.   Get more potential and exposure with JustSell’s ecommerce platform designed specifically for construction business owners.   

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