Are European builders’ merchants ready for the new reality?

The European construction sector is at the beginning of a crucial transition: digitisation, sustainability and a persistent shortage of skilled workers are changing the rules of the game, but also offering new opportunities for builders’ merchants in Europe. This was stated by Jan-Paul Schop, CEO of marketing agency USP, during the Euro-Mat forum in Split.

Schop provided an overview of the most important developments and ways in which builders’ merchants can respond to them: the rise of BIM, the slow but steady effect of technological innovation, the search for sustainable solutions and pressure on the labour market. For builders’ merchants, opportunities lie in partnership, adaptation and proactively moving with these changes.

Building Information Modelling (BIM) is gaining ground, especially in larger projects and in North-West Europe. ‘Around 30 per cent of architects use BIM, and those projects represent almost 50 per cent of their turnover,’ says Schop.

For wholesalers, this means growing demand for products that fit within BIM-driven construction processes. However, its applications are still limited: architects mainly use BIM for visualisations. Links to planning and costs are still underdeveloped. This offers opportunities for suppliers who want to contribute ideas about digitisation and integration in the construction chain.

Builders’ merchants can distinguish themselves as digital partners by offering solutions that fit seamlessly with BIM workflows, thereby making the construction process more efficient.

New technologies such as robotisation, AI and augmented reality are much discussed, but a rapid breakthrough has yet to materialise. ‘Robotisation is seen as a possible solution to the labour shortage, but according to most architects, it will only be realistically deployable in five years’ time,’ says Schop.

For builders’ merchants, this means that innovations such as prefabrication, drones or digital measuring instruments will remain niche for the time being. Nevertheless, it is worthwhile to follow developments and enter into strategic partnerships with innovative manufacturers. Those who get on board early will soon be able to benefit from economies of scale.

Although almost all architects are involved in sustainable projects, end customers are often still cautious. ‘In 2020, 30 percent of customers explicitly asked for sustainable solutions, but that has now fallen to 20 to 25 percent.’

Nevertheless, the share of sustainable projects is steadily increasing. Wholesalers can respond to this with a wide range of biobased, circular or recycled building materials. ‘The concrete industry is facing difficulties, while wood is gaining importance – also for applications such as interior walls,’ says Schop.

In addition, there is a need for advice on circular solutions. Governments are increasingly focusing on circularity, which will eventually lead to a different demand structure in the market. For suppliers, this presents an opportunity to distinguish themselves with knowledge and service.

The shortage of skilled workers is hampering growth in large parts of Europe. ‘In Germany, 70 per cent of construction activity consists of renovation, while in Poland it is mainly new construction.’ Renovation in particular is hampered by a lack of painters, bricklayers and installers.

Whereas Eastern European labour migration previously offered a solution, this is now less obvious. Local labour markets in countries such as Poland are themselves tight, and migrants are often less employable in renovation projects.

Builders’ merchants are noticing this in the form of levelling off demand in certain segments. ‘The painters’ market, for example, cannot grow due to a lack of people,’ according to Schop. He also points to the potential of greater diversity: ‘In Denmark, 40 per cent of painters are women, compared to less than 5 per cent in the Netherlands. There is a huge opportunity there.’

After a difficult 2024, Schop expects improvement in 2025, with further recovery in 2026. Germany is likely to be an exception, where construction will remain under pressure. For builders’ merchants, it is now important to invest in strategic agility.

The four key areas of focus for builders merchants identified by Schop are:

Schop summarises it as follows: “BIM is becoming the standard, sustainability remains crucial, but the shortage of skilled workers could hamper growth. Builders’ merchants can position themselves as indispensable partners by contributing ideas on innovation, circular construction and solutions for labour constraints.”

In short, builders’ merchants will be expected to do more and more in the coming years. Not only as suppliers, but also as partners in innovation, sustainability and labour issues. For Euro-Mat members, now is the time to invest in knowledge, product range and collaboration. Those who prepare now will be ready for the new reality of construction.