With interest rates remaining elevated into 2025, the construction industry continues to feel the pressure across both residential and commercial sectors. Projects are being reprioritized, timelines are extending, and financing constraints are reshaping how contractors and procurement teams make purchasing decisions.
To help distributors prepare for what’s ahead, we’ve gathered insights from industry analysts, procurement experts, and supply-side economists. Their consensus? Customer preferences are evolving — and distributors who respond with agility, value, and digital enablement will be best positioned to thrive.
Here are the top expert predictions on how customer behavior is expected to shift in a high-interest rate environment — and what it means for your business strategy.
1. Value-Driven Buying Will Eclipse Brand Loyalty
In 2025, price sensitivity will remain high — but not at the expense of quality or service. Buyers will lean into value-based decision making, carefully balancing cost, performance, and availability.
Expert Insight:
“Contractors aren’t abandoning quality — they’re redefining it. Value equals price plus reliability, service, and timeline certainty.”
— Senior Analyst, National Construction Forecast Council
What to Expect:
Contractors evaluating total cost of ownership, not just price per unit
Increased openness to substitutions that offer faster delivery or labor savings
More RFQs that weigh performance and delivery guarantees alongside pricing
2. Short-Term Ordering Will Replace Long-Term Commitments
With high interest rates affecting cash flow and financing, customers will continue to avoid bulk purchasing or committing to large orders too early.
Expert Insight:
“Expect more conservative buying behavior. Customers want flexibility and will prioritize suppliers who can deliver phase-by-phase.”
— VP of Procurement Strategy, Mid-Market Builder Group
What to Expect:
Smaller, more frequent orders tied to project phases
Reduced lead times for replenishment, with higher expectations on fulfillment accuracy
Demand for “just-in-time” support, especially from regional branches
3. Payment Terms and Financial Flexibility Will Become Key Differentiators
Financing is tighter for everyone — from small contractors to national developers. That means credit policies and billing structures will become part of the value proposition.
Expert Insight:
“The vendors offering smart, flexible financial options will win business they wouldn’t otherwise have touched.”
— Head of Commercial Lending, Regional Construction Bank
What to Expect:
Higher demand for extended terms, installment options, or early pay discounts
Growing role of third-party trade credit solutions and invoice financing
Increased scrutiny of payment terms in vendor selection
4. Digital Tools Will Drive More Buying Decisions
Contractors operating on thinner margins want to make faster, smarter decisions — and that requires accurate, accessible information at their fingertips.
Expert Insight:
“Online quoting and self-service ordering aren’t just tech upgrades — they’re time-saving tools that drive customer loyalty in lean times.”
— Director of B2B eCommerce, Construction Software Firm
What to Expect:
Greater use of online portals, mobile ordering, and digital quote approvals
Preference for suppliers who provide real-time availability, specs, and pricing
Frustration with manual, phone/email-driven workflows
5. Buyers Will Favor Distributors Who Offer Jobsite Efficiency
With high interest rates amplifying the cost of every delay, time on the jobsite has real financial value. Buyers will lean toward vendors who improve speed and reduce risk.
Expert Insight:
“Distributors who help reduce labor time — through logistics, packaging, or product choice — become strategic assets, not just vendors.”
— Operations Consultant, National GC Advisory Group
What to Expect:
Preference for pre-assembled or pre-packaged materials
Demand for delivery precision (scheduled drop-offs, split loads, etc.)
More engagement around project coordination and material timing
6. Customers Will Demand Greater Pricing Transparency
With economic uncertainty top of mind, contractors will want clearer expectations around pricing stability and escalation.
Expert Insight:
“Buyers want to avoid surprises. Expect more push for fixed-price windows, escalation clauses, and transparent quote documentation.”
— Procurement Analyst, Construction Finance Institute
What to Expect:
Stronger interest in contract pricing or price-lock programs
Emphasis on upfront visibility into potential cost drivers
Distributors asked to provide alternative SKUs or value options with every quote
7. Relationships Will Matter — But Only If Backed by Performance
In a high-cost environment, contractors won’t cut vendors for one bad day — but they will look for consistency, reliability, and proactive communication over time.
Expert Insight:
“The days of riding on your name are over. Even legacy relationships are being evaluated against performance metrics.”
— Sales Strategist, Building Materials Association
What to Expect:
Loyalty tied more to reliability than personal connections
Vendors judged on responsiveness, availability, and accuracy
Frequent vendor reviews on price competitiveness and delivery success
Conclusion
As interest rates continue to shape construction project economics, customer preferences are shifting toward flexibility, digital convenience, value-based decisions, and supplier accountability.
Distributors that respond by streamlining processes, improving digital tools, and offering smart financial options will not only retain customers — they’ll capture new ones who are actively reevaluating their supplier mix.
In a cautious market, the winners will be those who make it easier, faster, and smarter to buy.
