Building products manufacturers get “smart"

Invest in technology to get— and stay—ahead of your competition

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Serena Crivellaro

Managing Director, Strategy, KPMG US

+1 347-873-9429

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Len Prokopets

Advisory Managing Director, Procurement & Outsourcing Advisory, KPMG US

+1 203-233-9077

ANCHOR TITLE FACTS

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Survey highlights

62% cite unforeseen geopolitical risks as a top organizational challenge in MANAGING impacts of inflation
82% expect to raise prices by the rate of inflation (52%) or more (30%)
72% envision passing on price increases in three to six months
74% are looking at right-sizing staff as a means of offsetting the impact of inflation
Nearly 40% plan to allow all employees to work remotely to reduce real estate and related spending
65% anticipate increasing their technology spend by 5% to 20% to mitigate inflationary impacts

Building products manufacturers are making transformative investments in technology in response to raw materials shortages, labor shortages, and a volatile construction end-market. We surveyed senior executives at 100 of those firms about a wide range of digital capabilities, spanning from construction design, sales, and fulfilment, and to post-sale support. Read the paper for a better understanding of what technologies they have and will be focusing on, and four surprising insights from our analysis.

Building products manufacturers get "smart"

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Growth in 2022, Outlook for 2023

80%

of retail executives surveyed reported increasing top line revenue from 2021 to 2022, with 75% reporting increases in operating profit.

72%

of executives anticipating a recession lasting a year or less, which was less optimistic down 9 percentage points from 81% in August

Operational Challenges and Priorities

Inflation is the most significant concern with the top 3 ranking challenges unchanged from August to December: 80% increased operating costs, 75% increased product input costs, and 50% eroded margins. The largest increasing concern since August is challenges to long term planning at 45% up from 38% in August.

Structural Change Watchlist

Structural shifts are more profound than cyclical shifts, as they upend existing business models. Knowing the trends already underway is a powerful advantage when hedging risk. We look at the top 10 structural changes reshaping the economic landscape today.

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