The Top Construction Industry Trends for 2025

A project manager on a multimillion-dollar jobsite can track a concrete pour with a drone and verify measurements to the millimeter with a laser scanner. 

Yet, to order a set of replacement bolts, she still has to leave a voicemail for her supplier and hope for a callback. The disconnect between advanced field technology and outdated purchasing methods is not lost on those in the heavy industry. But that story is starting to change.

Ahead, you’ll learn about the latest construction industry trends and the forces driving the change. 

The state of construction in 2025: Market dynamics and opportunities

Construction is an industry of incredible innovation, considering we already have autonomous construction vehicles and 3D-printed buildings. So why are most of its $5 trillion in sales still happening over the phone and with paper invoices? 

Despite its forward-thinking engineering, the construction industry's approach to commerce remains stuck in the past, with a staggering 93% of B2B sales still occurring offline.

These legacy systems are starting to show cracks. B2B buyers, who are consumers just like the rest of us, expect self-serve shopping experiences. That’s why 21.8% of manufacturers are prioritizing commerce in their digital transformation strategies over the next 12 months. 

Evolving business models are reshaping construction

The hum of the dial-up modem may be officially gone, but its spirit lives on in a construction brand's back office. As companies seek more efficient ways to conduct business, they are developing ecommerce models that are transforming the roles of distributors and dealers. 

The shift to direct-to-dealer and DTC models

Heavy equipment OEMs are building owned ecommerce channels so contractors can buy maintenance and wear parts without a phone call or counter visit. John Deere is a great example of this. 

The brand's ecommerce site presents construction buyers with options like delivery or pickup at a local dealer. Buyers can also view different parts for their current machines. The flow prompts buyers to enter a model and serial number, then opens illustrated diagrams and directs them to the parts that fit that unit. 

This move addresses the needs of modern buyers, who require custom applications and detailed product specifications but are also drawn to the speed of platforms like Amazon for off-the-shelf components.

A smooth buying experience like John Deere’s helps contractors identify the parts they need faster and reorder them. For OEMs, you’ll capture more direct margin on SKUs with high reorder frequency and gain richer telemetry on failure and consumption rates. It also provides the opportunity to offer bundles and subscriptions for consumables like filters or fluids. 

And John Deere isn't alone. Their biggest rival, Caterpillar, is making the same play with their parts.cat.com online store, showing how ecommerce is becoming the standard for doing business in heavy equipment.

Bypassing distributors for margin expansion 

Facing tight margins and the push to go digital, manufacturers are increasingly choosing to bypass distributors and sell directly to certain customers.

A shift like this can complicate operations like logistics and storage in the short term, but the long-term benefits are substantial. The single biggest advantage is margin expansion after cutting out intermediaries, which can provide a 10%–15% increase in operating margins. 

Direct models don't have to be an all-or-nothing proposition. Brands can adopt a hybrid approach:

• Direct-to-dealer (D2D) portals for price-protected assortments sold to established partners
• Direct-to-consumer (DTC) sites for consumables, aftermarket parts, and services

A B2B commerce platform that lets you operate business sales and DTC on the same platform also opens up new revenue streams. Industrial players are incorporating connectivity features such as sensors, telematics, and remote diagnostics to unlock premium services, including predictive maintenance, monitoring, and replenishment. 

If you think connectivity is a long-term bet, think again. The payback is incredibly fast. According to a 2024 Nokia study, 93% of companies that adopted private wireless saw a return on their investment within a year, with a remarkable 78% achieving this in less than six months.

A good example of these digitized products is home energy management systems. Providers like Generac offer HEMS bundles, such as the PWRview and PWRcell, to provide the real-time usage data and battery-solar coordination that buyers now expect. 

Integration of physical and digital channels

As the industry consolidates physical channels with digital B2B and DTC, the technology stack grows more critical. Shopify’s native B2B unified commerce software makes this possible. Key features include:

• Company profiles: Set up unique catalogs, payment terms, and tax rules for each B2B customer.
• Buyer-specific catalogs and pricing: Show different B2B buyers their own unique product assortments and price lists.
• Quantity rules and payment terms: Create rules for bulk ordering and offer flexible payment options like net terms.
• Self-service buyer portal: Give B2B customers a self-service portal to manage their accounts, place orders, and track their purchase history.

Merchants adopting B2B on Shopify have seen up to 33% more self-serve orders within 12 months, indicating strong buyer demand for this workflow.

Digital transformation: The biggest opportunity in construction

The new direct-selling websites are an important development, but they are the outcome of a much bigger trend. To understand why the push for digital transformation has been slower in this industry than in others, it’s first necessary to recognize the operational challenges that have made it resistant to change. 

Why 93% of construction transactions still happen offline

It’s hard to standardize the purchasing process for ecommerce. In B2B, buyers still use a mix of channels like email, field sales, phone, and portals. 

Building products are among the least digitized categories, with thousands of SKUs ranging from raw materials to finished assemblies and heavy reliance on specs, codes, and compatibility. Without fitment tools and contract pricing online, they default to human help to avoid costly misorders.

Unlike buying for a warehouse, construction purchasing is driven entirely by the project. Every order is tied to a specific jobsite, a particular phase of the build, and the crew on the ground. Procurement typically accounts for 40%–70% of a contractor’s spending, and runs through negotiated pricing, POs, and submittals. 

For big or bulk orders, buyers usually call the supplier to negotiate a better price instead of buying online. For very complex jobs, it can take years to finalize a price, with numerous back-and-forth quotes required to account for fluctuating material costs. These strenuous workflows are traditionally handled with reps and paperwork. 

B2B ecommerce adoption accelerating in construction materials

Manufacturers and distributors of building products are increasingly moving toward digital purchasing journeys. 

QXO, the largest supplier of roofing and waterproof supplies in North America, achieved record sales through their digital channels in full-year 2024, and reported expanding their PRO+ ecommerce suite to include ordering, delivery tracking, and templates to Canada. 

Lumber and building materials leader Builders FirstSource rolled out myBLDR in early 2024, which centralizes quotes, online orders, scheduling, and delivery photos as part of a broad digital push to improve the contractor experience and impress investors. 

The theme is the same across roofing distribution and cement, regardless of category—forward-thinking brands are embracing digital self-service. As buyers become more comfortable placing large orders online, the barrier to entry for big-ticket purchases will continue to fall.

How leading contractors achieve 30%–90% revenue growth through digital channels

If there’s one thing the best contractors have in common, it’s generating demand online. Whether that’s through marketplaces like the Procore Construction Network or standing up their own B2B ecommerce websites, firms that make it effortless to buy online are seeing a lift in revenue. 

Meeting evolving customer expectations

The expectations of today's B2B buyers are increasingly shaped by their experiences in the consumer world. This shift is creating a new sense of urgency for suppliers to provide simple, efficient, and user-friendly digital purchasing options.

Demand for frictionless buying experiences

Customers in construction (and everywhere in B2B these days), expect fast, self-serve ordering with clear credit options. A 2024 Forrester-commissioned survey found 73% of buyers expect the same convenient online experience they enjoy in B2C.

In another study, 7 in 10 B2B buyers now prefer to place orders online rather than via phone or email. And 83% will abandon a purchase if no payment terms are offered. Platforms like Shopify let you mirror offline contracts online with company profiles and negotiated payment terms. 

Mobile-first solutions for field operations

Onsite teams need immediate approvals and availability to keep jobs moving. Your ecommerce store should make it easy for operators to create and manage purchase orders, so approvers can review and release spend immediately. 

Bonus points if your mobile store displays real-time branch inventory and offers pickup or delivery options, so techs know what’s available nearby. 

Customization and design flexibility

Some buyers will need commercial off-the-shelf (COTS) products, but construction also requires customized solutions. This need is creating new opportunities in areas such as modular/offsite systems, 3D-printed construction, and tailored machinery. 

However, selling complex products online with specific configurations, like a motor’s voltage or torque requirements, is challenging. Digital commerce platforms must now support visualization and customization tools, allowing buyers and engineers to order based on their specific requirements. 

Siemens, for example, lets buyers build their own components with their Product Configurator. Buyers can configure motors, converters, and systems with an easy-to-use tool and place their order directly online. 

Managing supply chain volatility and costs

The industrial and construction sectors are navigating a perfect storm. Soaring material costs, a persistent labor crisis, and unpredictable supply chains are squeezing margins from every direction. 

But savvy companies are reworking their operations with smarter procurement strategies and digital tools to protect profitability. 

Rising material costs and procurement strategies

The prices of essential raw materials, such as steel, plastics, and semiconductors, have surged by 20%-40% in recent years, placing pressure on production budgets. 

The volatility is driven by tariffs and geopolitical factors, and affects everything from copper to specialized components, such as neodymium magnets, which are now expensive and difficult to source. 

To cope, companies have to pass these increases on to their customers and use more dynamic procurement strategies, such as:

• Flexible quoting: For complex, long-cycle projects, many now provide non-firm quotes with margins as wide as +/- 30% to account for fluctuations in commodity prices and currency.
• Frequent price updates: Instead of annual price adjustments, manufacturers are updating costs monthly to keep pace with market changes.
• Supply chain resilience: Companies are actively nearshoring production and diversifying their supplier base to minimize the risks associated with global supply chains. This is a major gripe for custom parts, where reliance on a single supplier for specialized tooling can leave a company vulnerable to sudden price hikes.

Labor shortages driving automation

There is a huge shortage of workers in the manufacturing industry, with a global gap of 85 million workers expected by 2030. Companies are having to pay more to hire workers, driving up labor costs. As a result, many are investing in robots and innovative factory technology, known as Industry 4.0. 

Workforce skills are also shifting slightly. New workers are being required to learn technologies such as building information modeling (BIM), the Internet of Things (IoT), and robotics to enhance safety on construction sites. 

Digital solutions for inventory management

Another major trend in construction is improvements in inventory management. For producers of simple materials, such as cement and lumber, AI-driven tools are improving demand forecasting and simplifying bulk order management. Analytics can also scan enterprise resource planning (ERP) data to pinpoint overpriced suppliers or inefficient lead times, directly improving financial outcomes.

For manufacturers dealing with thousands of specialized SKUs, a simple online catalog won't cut it. Their ecommerce platform has one non-negotiable job—it must talk to their ERP system in real time. 

The ERP is the company's brain, holding the single source of truth for pricing, inventory, and product data. If the ecommerce site isn't perfectly synced, the entire operation risks chaos, from incorrect price quotes to selling inventory that doesn't exist.

Sustainability and regulatory compliance

The UN’s Environmental Programme 2024/2025 report found that the building and construction sector is a primary driver of the climate crisis. To date, it accounts for 32% of the global energy supply and contributes to 34% of global CO2 emissions. 

And builders aren’t against doing something about it. In fact, a 2024 report found that around 34% of projects were labeled as “green” and confirmed large-scale participation in green building. 

Environmental, social, and governance (ESG) reporting requirements tightening

Sustainability is a growing challenge for construction companies and their suppliers as regulations tighten globally. Here are the latest regulations:

• Canada: New Sustainability Disclosure Standards (CSDS 1 and 2) will soon require companies to report on Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain) greenhouse gas emissions. These mandates require greater transparency in sourcing and compliance across the entire supply chain.
• ISSB (IFRS S1/S2): Countries worldwide are aligning on a single, unified set of rules for how companies should report sustainability information. During 2024 and 2025, countries such as Canada, Japan, Singapore, and Australia adopted these international standards, known as IFRS S1/S2. 
• United States: The US Securities and Exchange Commission (SEC) created its own climate disclosure rule in March 2024. However, that rule is currently on hold due to ongoing lawsuits. In 2025, the SEC decided to pause its defense of the rule while the courts review it.

A good way to prepare to meet emerging global standards includes:

• Add Environmental Product Declaration (EPD)/ESG data, such as PCR, GWP, facility, and third-party verifier, to product pages and exportable spec packs.
• Enable company-specific catalogs and terms so public-sector buyers can purchase pre-approved, compliant items.
• Provide a compliance hub with downloadable EPDs, declarations, and chain-of-custody docs per SKU.

Green building materials and the circular economy

In response to these market pressures, the industry is experiencing a growing demand for eco-friendly materials. Companies are pursuing certifications like the ISO environmental standard through initiatives like installing solar panels and adopting greener operational practices. 

Material brands are taking note. There is a growing number of materials producers that offer low-carbon mixes and circular solutions at scale:

• CEMEX Vertua: Low-carbon ready-mix line with EPDs and third-party certifications 
• Holcim ECOCycle: A circular technology that recycles CDM (construction and demolition materials) into new concrete and cement 

If you want to become greener, start by looking at where you can reduce your carbon footprint. 

For example, you could analyze your shipping and logistics data to identify the largest sources of emissions. Maybe you can switch to a regional supplier for raw materials instead of an overseas one to cut down your carbon output. Or invest in a fleet of electric-powered excavators or cranes for construction projects in city centers. 

Be forward about the eco-friendly products and services you offer. Highlight low-carbon product variants and recycled content on your PDPs. Let buyers filter by GWP/EPD to meet their sustainability requirements. You can even offer take-back SKUs, like demo waste, as purchasable items. 

Meeting buyer demand for sustainable construction

Owners and public agencies are pushing low-carbon choices from the top down. Builders are increasing their green activities, and as a result, product selection is being evaluated through verifiable EPD data and internal carbon targets. 

Procurement teams are meeting buyers on the playing field. Buy Clean policies now require third-party verified EPDs in bids, and agencies are standardizing EPD data quality and GWP thresholds. Industry surveys in 2025 find more than 80% of producers/AEC pros say EPDs influence architecture, engineering, and construction (AEC) purchasing. So, basically, it’s no EPD, no shortlist.

Technology adoption transforming operations

The advancement of technology in AEC is impressive, but safety is always the primary consideration. Overall, the construction site is getting a major tech upgrade. We’re seeing more sensors, autonomous and remote operations, and site robots than ever before. 

Industry 4.0 implementation in construction

Safety standards are getting a much-needed refresh. In 2025, ISO rolled out the first big overhaul to its leading industrial robot safety standard (ISO 10218 -1/2). This was huge because it gave clarity on risk reduction, integration, and human-robot interactions, which are important as robots leave the factory floor for the jobsite. 

US agencies are on the same page. The National Institute for Occupational Safety and Health (NIOSH) published research in 2024 focused on safe human-robot collaboration specifically for construction. The Occupational Safety and Health Administration (OSHA) has also cautioned that many robot incidents happen during non-routine tasks like programming and maintenance, which are the exact moments teams will interact more with new AI-enabled equipment.

So, what does this mean for you? It's time to level up your safety playbook to focus on:

• Updated job hazard analyses
• Clear geo-fenced work zones
• Solid lockout/tagout procedures for autonomous modes
• Proper training for working in shared human-robot workspaces

Overcoming technology challenges

When it comes to Industry 4.0 tech in construction, the quickest return on investment (ROI) is simple: uptime. Keeping heavy equipment running is the name of the game, and major manufacturers are all-in with smart platforms to make it happen.

• Caterpillar’s VisionLink is like a health tracker for your fleet. It pulls together data from telematics, fluid analysis, and inspections to predict failures before they happen.
• John Deere Connected Support uses its JDLink system to stream machine health data to monitoring centers. If they spot a problem, they issue Expert Alerts so you can make proactive fixes.
• Komatsu’s KOMTRAX and KOMTRAX Plus go a step further with remote diagnostics and can even handle controller reprogramming from a distance, cutting down on site visits and repair times.

No longer does your fleet have to be the “fix-it-when-it-breaks” type. The technological advancements in construction help you obtain higher equipment utilization and way less unplanned downtime.