Essential building supply trends to monitor
It’s an exciting time to be in the building supply business. Volatility, challenges and obstacles are plentiful, but there’s no question this vital industry will remain the heartbeat of the U.S. building industry. What the field looks like and how it’ll function moving forward is subject to change, however.
Below are some takes, predictions and assessments on which way the building supply winds are blowing.
Key building supply trends
Tommy Mello, founder of A1 Garage Door Service, is seeing a heavy increase in calls for “sustainability” and more eco-conscious building in general. “Homeowners and builders are increasingly prioritizing eco-friendly materials and energy-efficient products. This shift is not only driven by regulatory changes but also by consumer demand for greener options. As a result, suppliers are expanding their inventories to include sustainable materials like recycled products and low-VOC finishes,” he says.
The rise of “smart home technologies” are worth closely monitoring, too, as more consumers seek efficiency and products that integrate seamlessly with smart home systems. “This trend is driving demand for building materials that support smart technologies, such as wiring for home automation systems and smart appliances,” says Mello.
Future trends to watch
Looking ahead, Mello believes the trend toward sustainability (and being able to prove and communicate eco-friendly bona fides in meaningful ways) will continue to dominate. “Innovations in green building materials, such as bioplastics and advanced insulation technologies, will gain traction. The growing emphasis on circular economy principles—where materials are reused and recycled—will reshape supply chains and sourcing strategies.”
In terms of building, the construction industry is eyeing more widespread adoption of prefab and modular construction techniques, which “can lead to more efficient building processes, reduced waste and lower labor costs.”
Technologies worth the hype
Among all the tech talk and hype, Mello says building information modeling (BIM) stands out. “BIM enables architects and builders to create 3D models of buildings, improving collaboration and efficiency throughout the construction process. The ability to visualize projects before they begin can save time and reduce errors.”
However, he believes 3D printing may be a tad overblown. “3D printing in construction has generated significant buzz, but its practical application on a large scale remains limited. While it holds promise for specific projects, the technology is still in its infancy regarding widespread adoption in traditional building supply contexts.”
Aspects of the business performing well
From Mello’s view, the demand for residential construction projects remains strong, especially in suburban areas where remote work trends persist. “Home improvement and renovation projects are also thriving, with many homeowners investing in upgrades to enhance comfort and functionality.”
Looking beyond our borders
Jessica Plaskoff, who spent eight years as a project manager for Plaskoff Construction and is now with California-based remodeler One Week Bath, advises paying close attention to circumstances outside North America and Europe.
“Though most of the focus is on what is happening in the U.S. and Europe, global building supply trends will be largely shaped by what is occurring in China,” she says.
Plaskoff elaborates:
“U.S. demand for building materials remains high, but prices are set largely by fluctuations in interest rates, state and regional policies, as well as the changing political landscape. However, China lacks some of the mitigating factors as the U.S. or Western Europe. And due to its sheer population and lack of regulatory roadblocks, it will be the dominant influence on the cost of building materials. Moving forward, the Chinese market will continue to play a large role in building supply cost and will have a powerful influence on market prices in 2024 and beyond.”
A view from the financial side
Michael Schmied, a senior financial analyst at Kredite Schweiz who frequently advises companies in the construction and building supply sector, predicts a continued rise in “green” building certifications.
“I see a lot of businesses aiming for LEED and Energy Star certifications because they offer a competitive edge. These certifications aren’t just fancy labels—they show that a building meets high standards for energy efficiency and sustainability. It’s all about gaining trust and proving your commitment to green practices,” he says.
Schmied also believes 3D printing for custom building components is another trend to take seriously. “I’ve been fascinated by how it can reduce waste and speed up production. Imagine being able to create complex designs that were once impossible—right on site.” However, “scalability and material options are still evolving,” he says.
Another hot topic for Schmied is high-performance windows and doors, which he says are “really booming right now.” Doors and windows that boost energy efficiency help meet new energy codes and provide long-term savings, he says.
Regulatory changes pertaining to material sourcing are another concern. “New rules are impacting what materials we can use and where we get them. This can be tricky, especially if you’re not prepared. Staying on top of these changes is crucial to keeping your projects running smoothly and staying compliant with the law.”
A freight expert weighs in
Robert Khachatryan, CEO and founder of Freight Right Global Logistics, is also seeing a major push for sustainability.
“There’s a growing demand for eco-friendly materials, with sustainable building materials projected to reach a market value of $187.4 billion by 2027, driven by increasing environmental regulations and consumer preferences,” says Khachatryan.
As for what trends will shape the industry moving forward, modular construction is top of mind. “Modular and prefabricated building methods are gaining traction, offering faster build times and reduced waste,” he says.
He takes an optimistic view of 3D printing technology, which in the construction world may be worth $3.3 trillion by 2032. “3D printing in construction is gaining momentum for its ability to reduce waste and speed up construction times,” he says.
AI will certainly play a role in the building supply world moving forward, though what that looks like is still very much up in the air. Khachatryan cites a McKinsey study on AI-powered supply chain management that says AI has the potential to decrease forecasting errors by 20 to 50 percent, which could mean:
- A reduction of up to 65 percent in lost sales and instances of product unavailability.
- A decrease of 5 to 10 percent in warehousing expenses and a 25 to 40 percent reduction in administrative costs.
- Achieving cost savings of 10 to 15 percent through optimized workforce tasks.
- An increase in delivery efficiency by as much as 20 percent.
The potential of using blockchain technology, however, has yet to fully flourish. “Its adoption in building supply chains has been slower than anticipated, and its practical applications remain limited compared to the hype,” says Khachatryan.
He also issues a warning about the industry’s labor crunch. With more than 500,000 construction jobs needing to be filled in 2024 alone, it’s a widespread issue that could affect every aspect of the building supply world for the foreseeable future.
