Digital transformation hurdles in construction sector revealed

Recent research shows that builders' merchants and construction suppliers are encountering significant obstacles in updating their eCommerce capabilities.

The report, "Building the Future: The Evolution of Construction eCommerce," conducted by the eCommerce agency PushON, has identified key challenges within the sector, including budget constraints, resistance to change, and gaps in leadership knowledge. These factors are impeding progress in digital transformation efforts.

The study surveyed senior decision-makers from various segments of the construction supply chain. It found that 34% of businesses feel compelled to use digital transformation to reduce costs. However, many businesses struggle to align their eCommerce strategies with overall business objectives. More than half of the respondents (57%) noted difficulties in integrating digital ambitions into their broader business frameworks, highlighting a disconnect between traditional operational models and the potential of modern technology.

Resistance to change was a prominent concern, with 56% of surveyed individuals stating that traditional working methods within their organisations are inhibiting progress. Additionally, 39% of respondents pointed out that budget limitations are a significant barrier to implementing digital initiatives.

Moreover, the report identified a lack of understanding of digital commerce among senior leadership as a critical issue preventing businesses from fully embracing eCommerce opportunities. Approximately 24% of respondents cited gaps in expertise at the senior level. This knowledge gap and inflexible technology stacks, mentioned by 19%, render many firms unprepared to adapt to future eCommerce demands.

Sam Rutley, Managing Director of PushON, commented, "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 still struggles 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."

Rutley further emphasised the risk of businesses falling behind due to a failure to adapt to the increasing demand for digital solutions. Sam Rutley stated, "There's a clear recognition of the need for change, but progress will remain slow until leadership prioritises digital transformation and secures the necessary buy-in across organisations. The industry must act now to ensure its future competitiveness."

The findings suggest that the existing digital infrastructure does not meet expectations, with only 24% of respondents saying they are "extremely satisfied" with their eCommerce platforms. Many respondents voiced concerns about the ability of their current systems to address future needs.