Breaking Down The Construction Supply 150 Report

This year’s Webb Analytics Construction Supply 150 (CS150) report highlights three key trends shaping the industry: the rise of ecommerce, increased IT investment, and a cautious but growing interest in artificial intelligence. Compared to last year’s findings, 2025 reveals a more aggressive pivot toward digital transformation, with dealers making investments in technology to pull ahead by using data-driven tools to streamline operations and improve customer experience.  

>> Watch the recording to learn key takeaways from the report. 

Digital is the competitive edge 

Ecommerce remains a top priority for dealers. As noted in both the 2024 and 2025 reports, more dealers are rolling out customer portals and online ordering options – in addition to “traditional ecommerce”, such as online ordering and buy online, pick up in store (BOPIS).  

In the 2024 report: 

• 61% of respondents supported online bill pay, with 26% intending to roll it out. Both numbers have risen a few points and allowing purchase history online has stayed steady.  

While the 2025 CS150 report doesn’t re-state the exact figures from 2024, the context strongly suggests that the upward momentum has continued. In 2024, 61% of respondents supported online bill pay and 26% planned to implement it, both figures had already risen slightly at that time. By 2025, the tone of the report implies that many of those planned rollouts have since been completed. As a result, tools like online bill pay and online purchase history, which held steady. are no longer differentiators; they’ve become expected. The digital baseline has clearly advanced, and dealers that haven’t kept pace now risk falling behind competitors offering faster, more transparent, and more convenient buying experiences. 

From IT upgrades to intelligent strategy 

Investments in ERP platforms, integrated inventory systems, and cloud-based tools, such as RockSolid MAX and Spruce, build the infrastructure to scale smarter whether that means automating repetitive tasks, reducing stockouts, or enhancing pricing accuracy. 

In 2024: 

•  Less than 50% of CS150 companies had adopted CRM and warehouse management software 
• With active acquisitions, that number was expected to rise above 60% 

 In 2025: 

• The data shows those investments are paying off. Companies that expanded through new locations or acquisitions saw a 1.6% revenue increase, while those that didn’t saw a 2.4% decline.
• Dealers who leaned into operational improvements and tech upgrades fared better in an otherwise flat market.  

ECI continues to support dealers with solutions built for the unique needs of this industry. From ecommerce enablement to mobile delivery tools, our products are designed to help you stay competitive with better-resourced competitors without adding complexity. 

AI is no longer a sci-fi idea 

Last year, AI in LBM felt like a buzzword. In 2025, it’s emerging as a tangible priority. While adoption is still in the early stages, more dealers are beginning to explore how AI can drive efficiency, from sales forecasting to predictive ordering. The CS150 report reflects a clear shift in attitude: dealers aren’t asking if they should adopt AI, but how and when. 

In 2024: 

• AI adoption was minimal and experimental, often overshadowed by larger priorities like ecommerce and ERP implementation. 

In 2025: 

• The report reflects a clear shift in mindset: AI is now seen as a how/when question, not an if.
• With economic pressure continuing and hiring challenges mounting, dealers are turning to AI to help automate routine insights and optimize purchasing. 

At ECI, we’re helping pave the way forward making AI practical and accessible for independent LBM businesses, not just national chains. Whether it’s automating customer insights or flagging purchasing anomalies, AI can now be a tool for every yard, not just the biggest ones. 

What a difference a year makes 

The tone of this year’s findings is sharper compared to the 2024 CS150 deep dive. Economic headwinds remain, but the top dealers are responding not with hesitation but with targeted tech investment. The lesson? Resilience now depends on innovation. The 2025 leaders are those using technology not just to cut costs but to reimagine how they serve their customers. 

• In 2024, dealers projected a 4.4% sales increase for the year ahead, fueled by cautious optimism.
• In reality, 2025’s actual growth was a modest 1.3% overall, and only 0.7% when excluding Home Depot and Lowe’s. 

Segment breakdown: 

• Lumberyards without manufacturing: -8.5%
• Lumberyards with manufacturing: -2.1%
• Specialty dealers: +3.1%
• Home centers/hardware stores: +1.6% 

Let’s talk about what’s next 

We covered all of this in our webinar highlighting key takeaways from the CS150 report, hosted by Craig Webb, author of the CS150. Take a moment to ask yourself: how does your business stack up? 

If you’re ready to take the next step, ECI is here to help with tools built by LBM experts, for LBM businesses.