L.E.K. 2021 European Building and Construction Survey Results

The L.E.K. 2021 Building and Construction Survey looks at how tradespeople in the building and construction sector across the UK and Europe are sourcing the tools, products and materials they need. The survey findings point to key issues to help building product manufacturers, merchants and distributors to understand changes in their market, and to develop strategies to make the most of the new opportunities they present.

Several important key insights were uncovered within the survey results:

Survey data shows that building contractors undertake extensive research before most of their purchases, particularly for heavy materials, hand tools and fit-out. 

The research can be online or in-store; however, the most common research tasks conducted are comparing prices and gathering additional product information, which is likely to be increasingly done online. The data shows that research frequency increases with spend influence, so those high-ticket supplies needed by a company’s big purchasers will require lots of information. 

Survey question: Before purchasing building products, materials or hand tools, how frequently do you carry out research (either online, over phone/email, in-store or otherwise)? 

Key stats (Graph 1) for the average percentage of those with £1m+ spend influence aged 18-39 who responded either “every time” or “most of the time” are: 

• Heavy materials: 74% 

• Light materials: 72% 

• Consumables: 69% 

• Hand tools and equipment: 71% 

• Fit out: 69% 

Younger demographics are more likely to use mobile websites and apps for research.

Currently, websites on desktop (or laptop) are the most commonly used research source across research activities. Younger demographics are more likely to use mobile websites and apps for research, indicating that the prevalence of these sources will increase over time. 

Survey question: How do you currently carry out the following research activities?; What is your age? 

Key stats (Graph 2) of those who responded they carry out research activities via a website on their desktop or laptop are:

• 94% of 18-29 year olds

• 90% of 30-39 year olds 

• 90% of 40-49 year olds 

• 86% of 50-59 year olds 

• 94% of 60+  year olds 

However, when it comes to using mobile devices and apps, the statistics vary further between age groups.  

• 84% of 18-29 year olds responded that they visited a website on a mobile device; while 70% said they use apps. 

• 84% of 30-39 year olds responded that they visited a website on a mobile device; while 72% said they use apps. 

• 84% of 40-49 year olds responded that they visited a website on a mobile device; while 75% said they use apps. 

• 65% of 50-59 year olds responded that they visited a website on a mobile device; while 51% said they use apps. 

• 56% of 60+ year olds responded that they visited a website on a mobile device; while 35% said they use apps.  

Online and mobile shopping in the construction industry is here to stay.

The survey data collected shows that the number of people who favour in-store ordering decreases by age group. The number of people who prefer mobile or app ordering stays much the same across age groups, except for the 50-54 and 60-64 year old sets. This goes to show that behaviours like online and mobile shopping, that would have been accelerated by Covid, are not unwinding, they are here to stay. 

Survey question: What are your preferred methods of ordering and delivery? 

Key stats for “in store” responses (graph 3):  

• 24% of 18-24 year olds

• 25% of 25-29 year olds 

• 24% of 30-34 year olds 

• 22% of 35-39 year olds 

• 21% of 40-44 year olds

• 25% of 45-49 year olds 

• 25% of 50-54 year olds 

• 27% of 55-59 year olds 

• 30% of 60-65 year olds 

• 40% of 65+ year olds

Key stats for “mobile app” ordering responses (graph 3):  

• 25% of 18-24 year olds

• 19% of 25-29 year olds 

• 23% of 30-34 year olds 

• 23% of 35-39 year olds 

• 22% of 40-44 year olds 

• 20% of 45-49 year olds 

• 14% of 50-54 year olds 

• 19% of 55-59 year olds 

• 14% of 60-65 year olds 

• 0 65+ year olds 

Amazon’s presence is rapidly accelerating in building and construction.

For smaller contractors looking for super-convenience, Amazon is already the largest supplier of building and construction supplies across Europe, and in the UK is beaten only by Screwfix and B&Q. As well as swift delivery, Amazon offers a digital platform that’s easy to search and simple to access reviews and product information, according to respondents. 

Respondents were asked which retailers they have purchased from in the past year, and Amazon was most frequently cited by French, German and Spanish respondents. The UK favours B&Q and Screwfix; however, Amazon is in the top three in the UK as well.

Survey question: Which merchants/distributors/retailers have you purchased building products and materials from over the past year?

Key stats (Graph 4): 

• 50% of UK respondents said Amazon

• 73% of French respondents said Amazon

• 62% of German respondents said Amazon

• 65% of Spanish respondents said Amazon

Expert insight from Tom Diplock, L.E.K. Senior Partner, Industrials.

“One of the key challenges in the Building and Construction sector - particularly for those further upstream who are manufacturing and distributing products - is getting a handle on how their customer base is thinking about the world,” Tom Diplock, L.E.K. Senior Partner, Industrials explained. 

“Their customer base is often a fragmented set of small to medium size contractors and tradespeople, so knowing how they are choosing to engage with the companies that supply them is important. To inform that, we’ve undertaken a pan-European survey of tradespeople and contractors to understand particularly when it comes to purchasing a product, how they are looking to engage with suppliers across the full journey: from research to purchase to fulfillment.” 

“2021 has certainly been an extraordinary year for the building and construction sector. Off the back of the destruction of Covid, we’ve seen a pretty rapid bounceback in demand across almost all parts of the market,” Diplock said. “But in the context of fairly significant constraints and challenges around materials and labour shortages and rampant price inflation, it has made supplying that demand and managing margins incredibly difficult.  

“Our outlook for 2022 for the building and construction sector is to see a continuation of a number of the key themes we’ve seen over the past 12-18 months. Continued recovery and demand across the majority of sectors of the market, ongoing resolution of supply chain challenges around material availability and labour, and material pricing and also continued acceleration of both digital adoption and the importance of sustainability for the sector. The recovery and ongoing growth of the sector will continue to be slightly uneven but overall we see a positive trajectory.”

Survey Methodology 

L.E.K. surveyed 900 contractors across four key European markets: UK, France, Spain and Germany. The survey targeted firms of less than €100m turnover and covered all trades and market segments. 

Source : L.E.K.

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