The construction industry is starting to cool off as limited financing options, higher interest rates and wavering demand limit the number of projects available and push up already increasing costs. On top of these challenges, the industry is still hindered by a supply chain that has yet to recover to pre-pandemic efficiency. While the year started on a high note with growth in all major segments in 2023, the rest of 2024 may look a little different.
According to a survey conducted by the Associated General Contractors of America, contractors’ top worries for 2024 include fears around the impacts of higher interest rates on demand and the risk that the economy could enter a recession. In addition to workforce shortages, contractors are concerned about increasing project delays because of rising costs, slower schedules and lessening demand for the finished products.
For distributors of building materials, these challenges are an opportunity to gain an edge over the competition. Distributors that can help their customers streamline project costs and timelines by delivering materials faster, on time and with greater accuracy will quickly become preferred suppliers. And unlike traditional last-mile carriers that are often slowed down by restrictions, accessing crowdsourced delivery with Roadie enables deliveries on your timeline with no hidden fees. Roadie lets wholesalers and distributors easily and affordably add same day to their list of delivery options without compromising on flexibility or quality, allowing contractors to keep their crews on-site and finish projects faster.
Avoid project delays with same-day delivery
The construction industry relies heavily on the availability of materials to ensure the job site operates efficiently and stays on track. Delivery delays can easily disrupt the workflow and delay projects, and are often caused by supply chain disruptions and order inaccuracies.
Project delays or disruptions on a construction job site are more than just an inconvenience — they can be devastatingly costly. Crews who miss scheduled deadlines are not only subject to costly fines and penalties, but additional expenses can quickly add up. Extending a project timeline can lead to increased labor costs and rental expenses for extended equipment use. On top of these costs, contractors may miss out on future projects and financial gain by damaging client relationships and their reputation.
Trusting a robust, reliable last-mile delivery solution like Roadie ensures projects are never delayed due to building materials shortages. Roadie allows distributors to offer the optionality and scalability of on-demand, same-day delivery for a seamless customer experience. Contractors no longer need to wait days for an item to arrive or send one of their workers from the job site to pick up the necessary materials.
Plus, thanks to real-time tracking on the Roadie platform, contractors know exactly when materials will arrive, which allows them to plan better around how many or what type of workers should be scheduled at the job site. Visibility into materials delivery is also vital for better on-site materials management. Poor on-site management not only leads to extra costs, but it is a root cause of downtime as workers search for the supplies they need instead of getting the job done.
Direct-to-job site delivery helps keep material costs down
The cost of building materials has been steadily increasing for years, rising at a 20% or greater annual rate for 12 months in a row from mid-2021 to mid-2022. While contractors saw a slight reprieve in 2023, with costs rising less than 1% in 2023, Federal Reserve Economic Data anticipates a 2 to 3% increase in construction materials costs in 2024.
Uncertainty across the global landscape is to blame for these rising costs, as geopolitical tensions, inflation, skills and materials shortages, and growing sustainability regulations create significant challenges for the construction industry.
Rising costs are not new to contractors though, with global construction costs rising 21% over the last five years. To combat the pressures, many construction companies continue to invest in technology and other innovative solutions to keep operations running productively. They are also looking to their partners to help them streamline processes and keep costs low. Distributors offer a promising cost solution by offering direct-to-job site delivery.
With a platform like Roadie, contractors can find cost savings on oversize and heavy order delivery. On top of high base rates for oversized items, contractors are often subject to surcharges or penalties when ordering large items. Traditional carriers charge extra using complex formulas based on package dimensions to determine the delivery’s potential weight. They also require all items be packaged in a box, which adds costs and doesn’t make much sense for heavy or oddly shaped construction materials.
From screws and nails to ladders and drywall, Roadie’s algorithm matches distributors with a driver with the right vehicle for the job with no surprise fees for oversize items or dimensional weight. If it can fit in the bed of a truck, Roadie can connect you with the best driver to deliver it. And unlike traditional carriers that require more prep time for oversized items that don’t conform to their automated processes and machinery, Roadie lets you deliver same-day or next-day.
Another benefit of having access to same-day materials delivery is contractors do not need to store and secure extra materials. Instead of buying backup materials just in case, they can order supplies as they need them without worrying about delays or shortages.
Challenges create opportunities for growth
Communication is key when it comes to building materials delivery. An on-demand logistics solution like Roadie allows distributors to create a seamless customer experience and keep that line of communication open by sharing necessary delivery information to help all parties make better-informed decisions.
On-demand delivery using crowdsourced drivers means a better materials delivery overall, which in turn helps construction companies keep projects on track, reduce costs and improve overall job site efficiency, whether that’s at a commercial worksite or residential home. For distributors, this leads to higher customer satisfaction and increased sales.
From scheduling, tracking and confirming deliveries, when it comes to delivery, Roadie enables distributors to handle everything seamlessly so contractors can overcome the challenges of an evolving construction industry.
