The building and garden centre sector is constantly evolving, and that includes those who operate within it. Some of these changes are minor, while others are significant and have long-term effects on the industry. Whether you work in construction, home and garden, lumber, or hardware, knowing what's coming next will help prepare to prosper during these changes. Here are some of the top trends affecting our industry that will help you keep a finger on the pulse, and ahead of the curve.
Technology has been present in the building and garden centre sector for years. However, it still lags when compared to other industries. The building and garden centre sector relies on technology now more than ever, from measuring tools to points of sale and data management. Over the next few years, digitization will spread throughout many construction disciplines, and by 2023, even more tasks will be automated. In home design, we already see VR applications that provide 3D renderings of real-life spaces.
Virtual reality in training
More construction companies and developers are using VR for workers, allowing them to visit a virtual building and view structures before completion. The new technology could speed up construction projects by avoiding inaccuracies that sometimes come with traditional paper drawings. As VR technology becomes more affordable and available in the coming years, most significant homebuilders will likely include VR systems in their design tools, saving time and money and enhancing overall safety. Furthermore, these devices will enable businesses to test designs before work begins on-site.
Expansion of VR training programs
As previously said, virtual reality can potentially change training and development in various industries. Employees can gain hands-on experience and master skills that would be impossible to practice otherwise through VR programs. VR will enable businesses to give quality training quickly, efficiently, and affordably, from educating new staff to updating experienced personnel on new methods or approaches.
Data as a valuable tool
Not only is data rising at an exponential rate, but it is also becoming more sophisticated. This means that developing AI systems will necessitate access to massive amounts of data. The enormous volume of data that many businesses deal with, more specifically within the building supply and garden centre industry, can be difficult to comprehend. However, Big data and AI complement each other by increasing the value of accessible information. Using data to analyze user behaviour can help create better shopping experiences for your customers.
The rise of green building
Green buildings accounted for 8% of total construction spending in 2013, while green building projects will account for slightly less than half of all new construction in 2022. More than 60% of all new buildings have systems in place to be net-zero ready — or capable of being built with zero carbon emissions—by 2025. Green energy will grow even greener: There's little doubt that renewable energy is swiftly becoming a dominant source of power on a worldwide scale.
A spike in demand for plumbing and fixtures
The market for plumbing fixtures and fittings in North America is expanding. In the changing post-COVID-19 economy, the global market for Plumbing Fittings and Fixtures is expected to reach a revised value of US$110.9 Billion by 2027, increasing at a CAGR of 4.4% over the research period 2020-2027. According to Grandview Research, the North American market would rise at a faster CAGR of 7.5 percent through 2028.
eCommerce and online sales
Currently, offline channel segments for building supply distribution, including home improvement centres and other brick-and-mortar retailers, account for more than 80% of revenue in the sector. However, the online segment, including eCommerce, is quickly catching up as consumers prefer the convenience of purchasing products through digital distribution channels for DIY and DIFM home improvement projects.
To learn how Phoenix Solutions can help future-proof your building supply and garden centre company to stay on top of trends like the ones mentioned in this blog post, contact us for a free discovery call.