CS150 Deep Dive: Unveiling the Trends Shaping Building Supply

The 2024 CS150 report by Webb Analytics reveals a building supply industry navigating a post-boom reality. While 2022 presented challenges, dealers remain optimistic, with an average projected sales rebound of 4.4% in 2024.

At ECI, we are hearing the same trends and sentiments from our customers. Now that we are well into 2024, we are seeing what was predicted: lumber futures continue to suffer, workforce challenges remain, and national dealers are swallowing up dealers and implementing even more modern solutions that make customer experience (for dealers and consumers alike) more convenient than ever. This means smaller dealers are tightening their finances, while remaining focused on customer loyalty. In North America, they are feeling it with the acquisition of SRS by Home Depot. For customers at Home Depot, this acquisition not only creates convenience to contractors by way of available inventory but will create convenience in the ordering experience.

Investing in B2B Ecommerce Solutions

National dealers have always been ahead of the curve in online shopping for consumers, but now they are investing in B2B ecommerce for contractors that goes beyond online shopping. Ecommerce systems integrated with business operations systems, such as ERP, are designed for more than just 'adding to cart’ and ‘pick up in store' functionalities.

These connected systems allow contractors to organize their customer's projects and jobs, easily see and share quotes with their clients, and save orders for recurring projects. The dealers serving the contractors can offer loyalty programs and alerts on inventory changes to help contractors keep tabs on necessary supplies.

Enhancing Project Management and Customer Relations

According to Webb Analytics' CS150 report in North America, "Fewer than half [of the CS150] have customer relationship management and warehouse management software, but given all the companies making acquisition plans, those shares should top 60% soon." As well, Craig Webb notes that, "already, 68% of CS150 members have software that lets customers view their purchase history online, and another 20% plan to get it. Meanwhile, online bill payment already is in place at 61% of CS150 members, and another 26% plan to get it."

The solution remains: dealers have to invest in connected, modern technology to not only please your customers, but also be efficient in your business operations. And now is the time as you ride out this slower market. It may seem counterintuitive, but investing now to set your business up for the next wave will allow you to be ahead of your peers.

That said, we understand the dilemma of not having enough time to implement new technology when business is thriving but also being hesitant to make financial investments when the market slows down as it has this year. What dealers should take note of is that modern technology is no longer a nice-to-have, and it's no longer just about online shopping. It's about a fully integrated mobile storefront (ecommerce), in-branch experience (POS system), accounting, business operations and warehouse management (ERP system).