If you’re a business that sells products online, you may have noticed an uptick in the number of people who buy construction equipment and supplies, this is construction eCommerce. The construction industry is booming, with more than 7 million jobs opening up in the next decade. Construction workers need everything from office furniture to industrial machinery—and they need it fast. The eCommerce industry has responded by creating new features designed for construction companies.
Construction Industry eCommerce: Trends and Advice
The construction industry is a great place to start if you’re interested in building your business online. eCommerce isn’t just a growing trend—it’s an essential component of any modern business model.
Here are five reasons why the construction industry is ripe for eCommerce:
A large market size with plenty of growth opportunities. The construction industry has a relatively small share of the overall retail market, so there’s plenty of room for expansion.
Accessibility is an important part of customer satisfaction and retention efforts. Online stores can offer 24/7 access anywhere in the world, which improves your chances of capturing customers’ attention when they need it most (during their downtime at work or school). This can help keep them coming back after making their first purchase by improving customer satisfaction levels throughout each interaction with your brand—and those repeat purchases will make up most of your sales anyway.
Construction Industry Forecast
The construction industry is the largest in the world, generating $10 trillion in revenue and employing nearly 1 billion people annually. With a predicted growth rate of 5.3%, it’s safe to say that this sector will remain one of the most lucrative markets for eCommerce businesses over the next few years.
The latest report from Statista predicts that construction eCommerce sales will reach an estimated $1 trillion by 2023—a 7% compound annual growth rate (CAGR). As more companies enter this market, competition has become fiercer; businesses need to stay on top of trends and take advantage of new technologies such as AI or blockchain if they want their business models to succeed.
Drives to Improve the Efficiency of the Construction Industry
The construction industry faces a shortage of skilled workers, managers, and experienced supervisors.
This is partly due to the fact that many people working in this field for years are nearing retirement age. This means that there will be fewer people to replace them in their positions at construction sites and fewer workers overall because they won’t be able to find enough recruits who can do the job properly without needing lots of training or supervision.
Augmented Reality May Speed Up Certain Jobs
Augmented reality tools like Google Maps are already being used in the construction industry, but they may get even more helpful down the road.
“AR can help with planning, design, and management,” says Paul Heald, an associate professor at the University of Illinois College of Law. “Using AR could help workers visualize a project before it’s built, allowing them to plan for equipment or materials needed.”
AR could also be used on the job site: “In addition to aiding collaboration between colleagues working together on a project,” he says, “it should be possible for some workers who are not present physically (e.g., subcontractors) to contribute remotely using AR headsets that allow them to see what everyone else is doing at any given moment.”
From improving productivity through increased safety—or even just helping avoid mistakes—the potential benefits of augmented reality range widely in the construction industry and beyond.
Construction Industry Faces Challenges with Adopting Technology Solutions
The construction industry faces challenges when it comes to adopting technology solutions.
The most common obstacles are:
Lack of digital skills, knowledge, and experience.
Lack of money to invest in technology projects or tools.
Lack of time to learn new things or changes in the industry that may affect their business.
Lack of motivation for change unless there is a significant problem (e.g., if they are losing business because their competitors have adopted new technologies).
Benefits of eCommerce for the Construction Industry
eCommerce has many benefits for the construction industry. For one, it helps you find exactly what you’re looking for more efficiently than ever. In 2018 alone, the average American internet user spent 20 minutes searching for product information online. That number is expected to increase in 2023 and beyond.
It can also be used as a selling point when approaching contractors who may be interested in doing business with you.
eCommerce allows companies to reach out to new markets by selling products directly from their website without going through third-party distributors or retailers like Amazon or Walmart — which saves money while increasing profits.
How to digitize the building materials market
The building materials market is a huge and growing one. In 2016, the global market for construction materials was valued at $1.7 trillion, and it is expected to reach $2.5 trillion by 2025. While this represents an enormous potential opportunity for online retailers, there are challenges in getting into the industry due to its traditionally slow adoption of eCommerce technology and culture.
However, building materials eCommerce will be essential in helping businesses improve efficiency through transparency and automation across the supply chain—which can lead to more effective use of resources and less waste—and also winning more customers through increased brand awareness through better search engine optimization (SEO) strategies, pay-per-click ads and other digital marketing efforts that can boost your site’s rankings on Google or Bing/Yahoo.
Picking the right eCommerce platform for the construction industry
When choosing a platform, it’s essential to consider which features would be most beneficial for your business.
Ease of use: A good platform will be easy to navigate and have an intuitive design. This will allow you to get up and running quickly, which is helpful if you’re looking for cost-effective solutions (and who isn’t?).
Flexibility: Most eCommerce platforms offer some degree of flexibility, but some offer more than others. Look for one that provides the ability to customize your site without having to hire an expensive developer or web designer. You want something that allows flexibility without requiring too much effort from your team members.
Scalability: If things go well with your company over time and they grow significantly more significant (or if they start small but grow into something much bigger), then scalability becomes crucial when choosing an eCommerce solution because otherwise, it’ll become increasingly difficult as time goes on; not only does this mean making sure that their solution can scale upwards but also downwards (for example if there’s suddenly less demand).
eCommerce is the future of the construction industry
The construction industry has already been impacted by eCommerce, and the changes are being felt across all corners of the industry. As more construction businesses turn to online sales for new business, we expect to see an increase in eCommerce.
The construction market is one of the biggest spending markets in the United States; it also makes up a significant portion of GDP growth in Canada and the United States. The numbers speak for themselves: Construction is booming.
While some companies are pretty far ahead when it comes to adopting eCommerce strategies for their business (and others remain resistant), there’s no doubt that online sales will continue to grow regardless.
There’s no question that digital marketing has become an essential part of many construction companies’ businesses—if not THE most critical factor; companies who aren’t currently investing heavily in digital marketing may soon face stiff competition from willing and able firms to compete on this front.
Final thought
eCommerce is an exciting and evolving market that has the potential to revolutionize the construction industry. It can allow contractors to build and manage their online presence, but it also means that you must be aware of the trends and how they will impact your business.
