Budget constraints are slowing digital transformation
Businesses in the construction supply sector know they need digital transformation. They see the potential to cut costs, improve efficiency, and stay competitive. Yet, many hesitate to take action because of budget constraints. The challenge is about understanding that digital transformation is an investment, not a cost.
Right now, 39% of construction suppliers say they don’t have the budget to implement digital initiatives. Even more concerning, 57% struggle to align their digital strategy with their overall business model. This is also a leadership issue. Companies that fail to integrate technology into their core operations will find themselves outpaced by those that do.
C-suite executives must rethink their approach. Instead of seeing digital transformation as an expense, they should focus on ROI. Data-driven decisions, phased implementation, and strategic investments in scalable technology can drive long-term profitability. Leadership needs to make sure digital strategies are embedded into business models, not treated as isolated IT projects.
Resistance to change is holding back progress
The construction industry has relied on traditional business models for decades. That’s a problem. Companies that resist change will be left behind.
According to recent research, 56% of construction suppliers say outdated ways of working are blocking progress. Many companies view digital transformation as a disruption rather than an opportunity. That mindset needs to change. The reality is, digital tools don’t replace expertise, they enhance it. The companies that succeed will be the ones that integrate technology into their operations without disrupting their core strengths.
For leadership, the key is to shift company culture. Employees at every level need to see the value in digital adoption. That starts with clear communication from the top, hands-on training, and a strong vision for the future. Resistance to change is a leadership problem, not a technology problem. If leadership doesn’t drive transformation, no one else will.
Leadership gaps are slowing digital progress
Digital transformation looks beyond adopting technology, and focuses on what to do with it. Too many construction suppliers lack the leadership expertise to drive change. That’s a serious risk. A company without a strong digital strategy will fall behind.
The data backs this up. A quarter of businesses—24%—say their senior leadership lacks the necessary digital expertise. Another 19% struggle with inflexible technology that limits their ability to adapt. Without leadership that understands digital transformation, companies end up stuck with outdated systems and ineffective strategies.
This is where smart hiring and training come in. Executives need to either develop their own digital knowledge or bring in people who have it. Technology itself isn’t a strategy—leadership must set clear goals, ensure alignment with the business model, and make decisions based on long-term value, not short-term hesitation. The companies that invest in leadership will be the ones that stay ahead.
Outdated eCommerce platforms are holding businesses back
Many construction suppliers are stuck with outdated eCommerce systems that weren’t built for the future. That’s a major problem. Customers expect fast, seamless digital experiences, and businesses that fail to meet those expectations will lose out.
Right now, only 24% of construction suppliers say they are “extremely satisfied” with their current eCommerce platforms. That means the majority are either struggling with outdated systems or failing to see the value in upgrading. The problem is scalability. The digital landscape is evolving fast. Companies that don’t upgrade their platforms risk being unable to meet future demands.
C-suite executives need to think ahead. Investing in modern, flexible, and scalable eCommerce solutions is a business strategy. The right digital infrastructure allows companies to adapt, grow, and maintain a competitive edge. The future belongs to businesses that act now, not those that wait until their systems break.
Key executive takeaways
- Budget constraints are limiting digital progress: Many construction suppliers hesitate to invest in digital transformation due to financial concerns, yet 57% struggle to align tech initiatives with business goals. Leaders should view digital upgrades as strategic investments with measurable ROI rather than discretionary expenses.
- Resistance to change is slowing adoption: Traditional workflows and entrenched mindsets prevent digital progress, with 56% citing internal resistance as a major barrier. Executives must drive cultural change by demonstrating the value of modernization and fostering buy-in across teams.
- Leadership gaps are stalling transformation: A lack of digital expertise among senior decision-makers is preventing effective strategy execution, with 24% identifying leadership knowledge gaps as a key issue. Companies must invest in leadership training or bring in experienced digital talent to accelerate transformation efforts.
- Outdated eCommerce platforms are limiting growth: Many construction firms operate on legacy systems that fail to meet modern demands, with only 24% reporting satisfaction with their platforms. Leaders should prioritize scalable, adaptable digital solutions to future-proof their businesses and maintain a competitive edge.
