The building materials industry is undergoing a digital transformation — and one of the most noticeable shifts is happening in the ERP (Enterprise Resource Planning) software space. In recent years, we’ve seen a wave of mergers and acquisitions (M&A) involving ERP vendors, especially those that serve the construction, manufacturing, and distribution sectors.
While M&A activity in software can introduce uncertainty, market leaders are viewing it as an opportunity to modernize systems, expand capabilities, and drive growth.
In this article, we break down how companies in the building materials supply chain can capitalize on ERP M&A activity to improve operations, gain a competitive edge, and future-proof their businesses.
1. Treat M&A as a Trigger for Digital Modernization
ERP acquisitions often signal that legacy platforms are being replaced, rebranded, or merged into newer cloud-based systems. Instead of resisting change, successful businesses see this as a natural time to reassess their tech stack.
Growth Strategy:
Evaluate whether your current ERP still meets your evolving needs
Identify opportunities to replace manual processes with automation
Upgrade to platforms that support mobile access, integrations, and real-time data
Why It Matters: Modern systems can boost productivity, improve decision-making, and scale with your business.
2. Leverage Consolidated Platforms for New Capabilities
As ERP vendors combine products and teams, they often roll out expanded feature sets, including better CRM, advanced analytics, warehouse management, or e-commerce modules.
Growth Strategy:
Take advantage of newly available modules or integrations post-merger
Consolidate fragmented systems into a unified ERP environment
Streamline training and onboarding across departments
Why It Matters: A unified platform reduces friction, improves data flow, and enhances customer service.
3. Negotiate Better Support and Terms During Transition
ERP M&A creates leverage — and proactive businesses can use this moment to renegotiate licensing agreements, support tiers, or customization options.
Growth Strategy:
Ask for extended support for legacy platforms during the transition
Explore discounts for migrating early or committing to multi-year contracts
Push for service-level agreements (SLAs) that meet your business needs
Why It Matters: M&A creates a window for stronger vendor alignment and financial predictability.
4. Prepare for More Competitive Tech-Driven Differentiation
As ERP providers enhance capabilities, companies using them gain access to tools that improve customer experience — such as real-time inventory, automated invoicing, or advanced pricing logic.
Growth Strategy:
Use new ERP features to launch value-added services (e.g., jobsite delivery tracking, digital customer portals)
Differentiate by offering faster quotes, smarter recommendations, or better reporting
Enable your sales and operations teams with accurate, integrated data
Why It Matters: Enhanced ERP functionality can directly improve competitiveness in pricing, service, and responsiveness.
5. Use ERP Improvements to Support Geographic or Product Line Expansion
A modern, flexible ERP system makes it easier to open new locations, enter new markets, or add product lines — especially if it includes scalable inventory, logistics, and customer management capabilities.
Growth Strategy:
Align ERP improvements with expansion plans or new service offerings
Simplify onboarding for new branches, warehouses, or sales teams
Use integrated reporting to manage performance across locations
Why It Matters: Growth often fails without the systems to support it. ERP upgrades make scale sustainable.
6. Enhance Business Intelligence and Forecasting
Newer ERP platforms often include (or integrate with) advanced business intelligence (BI) tools. These tools help you analyze sales trends, customer behavior, and supply chain performance in real time.
Growth Strategy:
Build dashboards that track margin, inventory velocity, and fulfillment accuracy
Forecast demand more accurately and reduce stockouts or overbuys
Make data-driven decisions about pricing, product placement, and purchasing
Why It Matters: Visibility into operations is key to managing growth profitably.
7. Collaborate with ERP Vendors as Strategic Partners
ERP vendors emerging from M&A are often looking to build deeper customer relationships — especially with influential or fast-growing users.
Growth Strategy:
Join vendor advisory boards or user groups
Provide input on feature development tailored to building materials
Co-develop case studies or product feedback sessions to influence the roadmap
Why It Matters: Strategic collaboration can ensure your unique business needs are prioritized in the product’s future.
8. Train Teams Early to Accelerate ROI
One of the most common bottlenecks in ERP transformation is user adoption. M&A transitions can be the perfect time to retrain staff and promote digital literacy across departments.
Growth Strategy:
Schedule structured training tied to specific workflows
Involve teams early in change planning and feedback
Identify internal champions to lead adoption and reduce resistance
Why It Matters: ROI on any ERP system depends on how well people use it — not just how powerful the software is.
Conclusion
M&A activity in the ERP space isn’t just about software vendors — it’s about how your business responds to a rapidly evolving digital environment. By treating ERP changes as strategic opportunities, building materials distributors and suppliers can modernize, streamline, and position themselves for long-term growth.
The key is not to fear the disruption — but to lead through it.
