2025 Outlook: New building regulations shaping product demand

In 2025, building regulations are not just influencing how projects are designed — they’re directly changing what products are selected, stocked, and installed across the construction industry. From sustainability mandates to performance requirements and safety standards, new regulations at the federal, state, and local levels are reshaping the construction materials landscape.

For suppliers and distributors, keeping up with these regulatory shifts is critical. Product demand is increasingly being driven by compliance criteria, not just cost or availability.

Here’s what to expect in 2025 as new building regulations shape product demand — and how distributors can stay ahead.

1. Energy Codes Are Raising Performance Standards
Revisions to the International Energy Conservation Code (IECC) and state-specific energy codes are driving demand for more efficient building envelopes and HVAC systems.

What to Expect:
Increased demand for higher R-value insulation, air barriers, energy-efficient windows, and advanced framing materials

Builders seeking low-leakage products to meet blower door test thresholds

HVAC upgrades to meet new SEER and HSPF standards

What It Means:
Products that exceed code minimums — not just meet them — will gain a competitive edge in both residential and commercial sectors.

2. Carbon Emissions and “Buy Clean” Laws Are Influencing Material Selection
Several states have enacted or proposed “Buy Clean” laws that set embodied carbon limits for construction materials used in public projects.

What to Expect:
Rising demand for low-carbon concrete, steel, glass, and insulation

Preference for products with Environmental Product Declarations (EPDs) and transparent manufacturing processes

Contractors looking to substitute traditional materials with greener options

What It Means:
Distributors must stock and promote carbon-accountable products — or risk being left out of government and green-certified projects.

3. Fire Safety and Wildfire Resilience Standards Are Gaining Traction
In response to growing wildfire risks and urban-wildland interface development, fire-rated materials are in higher demand, particularly in the West and Southeast.

What to Expect:
Increased use of Class A roofing, non-combustible cladding, and fire-rated assemblies

Regulatory pressure on siding, decking, and underlayment performance

Builders seeking materials tested to ASTM E84 and related standards

What It Means:
Product documentation and third-party testing compliance will play a key role in contractor product decisions.

4. Accessibility and Safety Codes Are Expanding Product Requirements
Updates to the ADA (Americans with Disabilities Act) and related codes are shaping product choices in multi-family, institutional, and public spaces.

What to Expect:
Greater demand for ADA-compliant doors, fixtures, flooring transitions, and hardware

Contractors and architects seeking detailed specs and cut sheets during submittal

Project owners requiring inclusive design elements as standard

What It Means:
Stocking ADA-ready SKUs — and labeling them clearly — will be a selling point in regulated markets.

5. Regional Code Divergence Is Driving Localized SKU Demand
State and municipal authorities are modifying or accelerating code adoption, resulting in region-specific product demand.

What to Expect:
California, Washington, and New York implementing aggressive climate and electrification mandates

Southern states focusing on resilience and stormproofing

Local jurisdictions requiring quick compliance turnarounds and documentation

What It Means:
Distributors must tailor inventory branch by branch, aligning with each jurisdiction’s evolving standards.

6. Electrification and Low-VOC Standards Are Affecting Interior Products
Electrification policies and indoor air quality regulations are shifting demand toward cleaner, safer, and code-compliant interior materials.

What to Expect:
Growth in all-electric appliances, induction-ready wiring systems, and EV charger infrastructure

Increased use of low-VOC paints, adhesives, flooring, and cabinetry

Codes limiting natural gas hookups in certain jurisdictions

What It Means:
Suppliers need to track product emissions thresholds and electrification compatibility to serve code-driven projects.

7. Documentation and Transparency Are Non-Negotiable
Many 2025 building codes are tied to documented performance and compliance data — especially for public and institutional projects.

What to Expect:
Increased requests for cut sheets, MSDS, VOC data, EPDs, and warranty info

Customers expecting digital access to documentation at time of quote or order

Builders leaning toward vendors who offer ready-to-submit product packages

What It Means:
Distributors must build and maintain a digital compliance library — and integrate it into quoting and sales workflows.

8. Product Substitution Rules Are Tightening
Contractors are facing stricter scrutiny on substitutions, especially for code-mandated or certified materials.

What to Expect:
Reduced flexibility for swapping products after submittal approval

Architects and owners requiring equal or better performance documentation

More emphasis on early-stage planning and value engineering

What It Means:
Suppliers that offer pre-vetted alternatives with complete spec data will gain a competitive advantage.

Conclusion
In 2025, building regulations are doing more than shaping how buildings perform — they’re directly changing what products get used, specified, and approved. For distributors and manufacturers, this shift means success depends on compliance knowledge, inventory alignment, and documentation readiness.

The winners in this new regulatory environment won’t just sell materials — they’ll offer code-ready solutions and support, helping builders navigate complexity with confidence.

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