But budget and resistance to change is stalling digital transformation in the builders' merchant sector.
Builders’ merchants and construction suppliers are facing major challenges in modernising their eCommerce capabilities, according to new research.
The report, Building the Future: The Evolution of Construction eCommerce, conducted by eCommerce agency PushON, highlights a sector grappling with budget constraints, resistance to change, and leadership knowledge gaps that are hampering progress.
The study, which surveyed senior decision-makers from across the construction supply chain, found that while 34% of businesses feel under pressure to cut costs through digital transformation, many are struggling to align eCommerce strategies with overall business goals.
Over half of respondents (57%) reported difficulties integrating digital ambitions into their broader business frameworks, exposing a disconnect between traditional operational models and modern technology’s potential.
Resistance to change emerged as a key issue, with 56% of those surveyed saying that traditional ways of working within their organisations are holding back progress. Compounding these challenges, 39% of respondents cited budget limitations as a significant obstacle to rolling out digital initiatives.
The report also revealed that a lack of understanding of digital commerce among senior leadership is preventing businesses from fully embracing eCommerce opportunities, with 24% of respondents pointing to gaps in expertise at the top.
This knowledge deficit, combined with inflexible technology stacks - cited by 19% - is leaving many firms ill-equipped to adapt to future eCommerce demands.
Sam Rutley, Managing Director of PushON, said: “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.”
Businesses failing to adapt to the growing demand for digital solutions risk being left behind.
Rutley said: “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 findings indicate that current digital infrastructure is falling short of expectations. Just 24% of respondents reported being “extremely satisfied” with their eCommerce platforms, with many raising concerns over the ability of existing systems to meet future needs.
