In 2015, Global Industry Analysts, Inc. (GIA) published a study painting a rosy picture of the future of the global construction materials market. According to the report, the industry is projected to exceed 1 $.1 trillion by 2020, thanks largely to recovering construction activity across multiple sectors and a sunnier world economic outlook. The report also named the U.S. the market with the second greatest potential for growth, after the Asia-Pacific Region.
Three years later, do these projections still hold true? What are the current trends in the building materials industry, and how are they affecting wholesalers, retailers, contractors and end consumers?
These are the guidelines that must be taken into consideration by wholesalers, retailers and other shareholders who want to gain or maintain an advantage over competitors.
Best Practice 1: Leverage contacts at all levels within the trade.
High-level communication with businesses across the industry's many sectors is one key to staying ahead of the curve. By establishing multiple contacts within the trade, you get a bird's eye view of emerging and deteriorating markets. Knowing which new areas to exploit and which ones to gradually pull away from earns you the following benefits:
Trade contacts are especially crucial for wholesale distributors, who are one step removed from end consumers and for whom timely and accurate demand tracking can be more difficult.
Best Practice 2: Leverage data-gathering and forecasting technology.
Few things are as valuable to a building materials supplier as real-time information and data-driven forecasting. In an industry as competitive as this, it means a lot for a business to have the ability to identify trends not just when they emerge, but as they emerge.
The right business intelligence software makes you more effective at:
Beyond gaining access to accurate market information, here are some other ways successful suppliers stay successful.
As with any business, no foolproof formula for success exists for construction materials dealers and distributors. But if you want to build your business in the building materials industry, these are just some of the things worth considering.
To learn more, download our ebook, Building Your Business in the Building Materials Industry.
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