While many lumber, building material, and hardlines (LBMH) businesses expect a performance dip in the coming year, the industry outlook remains optimistic, according to a survey conducted by ECI Software Solutions. LBMH businesses are concerned about three primary threats: the costs of goods and materials, a potential recession, and the ongoing pandemic.
The LBMH industry is expected to face headwinds, as so much activity in the space is dependent on construction and DIY projects, both of which are expected to slow down as interest rates and prices increase.
ECI reports that online sales have increased dramatically as a result of the market-wide shift to web-based shopping. LBMH leaders, with extra capital on hand, have been able to invest more in technology to keep up with digital trends and expand online capabilities. According to the survey, more than half of respondents to the ECI survey reported increasing investments in technology infrastructure, to enable their businesses to expand e-commerce offerings and maintain a competitive advantage in the market.
According to the survey, 63% of LBMH professionals consider e-commerce to be one of the most important features in running their businesses, ahead of customer relationship management (41%), and cloud functionality (36%).
“LBMH businesses that hope to compete during and after the coming recession will need to lean further into digital tools, like e-commerce, that boost revenues and lower costs,” John Maiuri, president of the LBMH division at ECI, said in a news release. “Being online will not only be the status quo in the future, but it will be a critical driver of innovation and differentiation. To do this at scale, leaders will need tools that integrate seamlessly with our business software.”
The survey, commissioned by ECI Software Solutions and conducted by OnePoll, generated responses from 200 U.S.-based software decision makers in the LBMH industry in July.
