Building Materials:
Industry Insight

Sales teams are increasingly expected to do more with less, often resulting in unintended margin erosion.

With the rise in housing and civil construction demand, a major building boom is underway in the Australian market.

Many companies have been able to retain margin percentages and, in some cases, grow margins. However, many other companies have sold more volume at the same margin or slightly lower margins driven by price discounting or increased rebates. It has been a case of profitless prosperity. The opportunity to generate earnings growth has yet to be realised.

The building materials industry is witnessing a significant shift in how materials are purchased. The increasing influence of professional procurement executives is disrupting traditional, relationship-based selling, which has historically safeguarded revenue and margins.