As the building materials industry becomes more digitally connected, distributors are ramping up their investments in technology to streamline operations, meet customer demands, and stay competitive. In 2025, technology adoption rates among distributors have reached new highs, influenced by supply chain disruptions, labor shortages, and increasing expectations for speed and transparency.
In this post, we break down the top 10 insights on how distributors are leveraging technology this year — and what it means for building material suppliers looking to stay ahead of the curve.
1. Cloud-Based ERP Systems Are Now Industry Standard
Over 70% of distributors have migrated to cloud-based ERP platforms in 2025, up from just 54% in 2023. These systems provide real-time inventory tracking, enhanced reporting, and integration with e-commerce platforms. Cloud ERPs also support remote work, which remains important in a post-pandemic world.
SEO Keyword Tip: cloud ERP for building materials distributors
2. E-Commerce Adoption Surges Across All Segments
Thanks to rising buyer expectations and B2B digital transformation, e-commerce capabilities have become a must-have. Over 65% of distributors now offer robust online ordering systems — with features like live pricing, inventory visibility, and account-specific catalogs.
Insight: Distributors with e-commerce platforms reported a 20–30% increase in repeat business.
3. AI and Predictive Analytics Improve Inventory Management
Distributors are adopting AI-powered demand forecasting tools to optimize inventory levels. These tools reduce overstock, prevent stockouts, and enable smarter purchasing decisions. AI is especially impactful in volatile markets where lead times and pricing shift frequently.
4. CRM Integration Is Driving Better Customer Relationships
Customer Relationship Management (CRM) platforms integrated with ERP systems are being used by nearly 60% of distributors in 2025. These tools allow sales teams to track touchpoints, monitor order histories, and personalize outreach — all in one place.
Tip for Suppliers: Make sure your CRM connects seamlessly with your distributor partners to align data and communication.
5. Mobile Solutions Empower Field Sales Teams
Mobile access to inventory, pricing, and customer data is no longer optional. Field reps using mobile sales apps close deals 23% faster than those using traditional methods. Mobile-first tools are becoming standard issue for distributor sales teams.
6. Automation in Warehousing and Fulfillment Gains Ground
Warehouse automation, including barcode scanning, pick-and-pack automation, and robotics, is on the rise. Distributors are reducing human error, increasing fulfillment speed, and creating more scalable operations.
Real-World Example: A Midwest distributor saw a 35% boost in order accuracy after implementing automated warehouse solutions.
7. API Connectivity for Real-Time Data Sync
Distributors are investing in API integrations to connect systems like ERP, CRM, shipping platforms, and supplier portals. This ensures real-time updates on stock levels, pricing changes, and order status — critical for customer satisfaction.
8. Cybersecurity Is a Top Priority
With more systems going digital, cybersecurity investment has increased by 48% this year. Distributors are implementing two-factor authentication, employee training, and encrypted data backups to protect customer and company data.
Pro Tip: Suppliers should align cybersecurity protocols with distributors to prevent vulnerabilities across shared systems.
9. Digital Training & Onboarding Tools Enhance Workforce Agility
Training platforms, such as LMS (Learning Management Systems), are being used to upskill employees faster and more effectively. As younger digital-native workers enter the field, distributors are shifting from paper manuals to interactive digital learning.
10. Sustainability Tech Integration Is Emerging
More distributors are leveraging technology to track carbon emissions, reduce packaging waste, and improve fuel efficiency in delivery logistics. Sustainability is no longer just a buzzword — it’s a business imperative.
Trend Watch: Expect a rise in tools that report environmental impact at the SKU and shipment level.
Final Thoughts
2025 has become a landmark year for technology adoption among distributors in the building materials space. From AI-powered forecasting to mobile-first sales tools, distributors are evolving rapidly — and suppliers must stay in sync to remain competitive.
If you’re a building materials supplier, now is the time to:
Align your digital tools with distributor platforms
Offer API-ready product data
Support e-commerce enablement
Invest in secure, scalable tech partnerships
