Budget and resistance to change stalling digital transformation in construction supply sector
A new report from eCommerce agency PushON paints a worrying picture of the construction supply sector, revealing a disturbing lack of progress in digital transformation. Despite the clear benefits of embracing eCommerce and online tools, many builders’ merchants and suppliers are clinging to outdated practices, hampered by budget concerns, resistance to change, and a lack of leadership on digital strategy.
This inertia is alarming, especially given the increasing pressure on the industry to improve efficiency and reduce costs. The "Building the Future" report by PushON highlights a sector struggling to reconcile its traditional ways of working with the demands of a digital age. Over half of the businesses surveyed admitted to difficulties integrating digital strategies with their overall business goals.
The reasons for this disconnect are multifaceted. While budget constraints are a legitimate concern for many, the report also points to a worrying lack of understanding and leadership when it comes to digital commerce. Too many decision-makers seem to view digital transformation as a threat rather than an opportunity, leading to a culture of resistance that stifles innovation.
Sam Rutley, Managing Director of PushON, aptly observes, “Many construction suppliers see digital transformation as a threat to their traditional business model. In reality, it’s an opportunity to enhance it. However, our research shows that the construction supply sector is still struggling to overcome barriers that other industries have already addressed. The combination of limited budgets, resistance to change, and a lack of digital expertise is stalling progress at a time when modernisation is essential for survival.”
This reluctance to embrace change is leaving the sector vulnerable. In an increasingly competitive market, those who fail to adapt risk being left behind. The construction industry needs to wake up to the potential of eCommerce to streamline procurement, improve communication, and boost profitability.
Rutley further emphasises, “There’s a clear recognition of the need for change, but until leadership prioritises digital transformation and secures the necessary buy-in across organisations, progress will remain slow. The industry must act now to ensure its future competitiveness.”
The good news is that it's not too late to catch up. By investing in the right technology, training their workforce, and fostering a culture of innovation, construction suppliers can unlock the power of digital transformation and build a more sustainable and successful future.
