In 2025, the distribution sector is rapidly digitizing — but not evenly. While some construction materials distributors are deploying advanced AI forecasting and integrated eCommerce platforms, others are still navigating basic ERP upgrades or manual workflows.
Understanding where the industry stands on technology adoption is essential for benchmarking progress, spotting growth opportunities, and identifying gaps in your own operations.
This article breaks down the latest data behind technology adoption rates among distributors, with a focus on construction supply, to reveal how digital transformation is shaping competitive advantage in real time.
1. ERP Modernization Is Widespread — but Not Complete
ERP systems remain the foundation of distributor operations — and modernization is a top priority across the industry.
Key Stats:
74% of distributors have migrated from legacy ERP to a cloud-based or hybrid solution as of 2025
Of those, only 41% are using more than 60% of available functionality
Common gaps include integration with customer portals, mobile access, and advanced reporting
Takeaway:
ERP adoption is high, but underutilization remains a major hurdle for digital maturity.
2. eCommerce and Self-Service Portals Are Gaining Momentum
Driven by customer demand and internal efficiency goals, more distributors are enabling digital ordering, quoting, and tracking.
Key Stats:
61% of construction-focused distributors now offer an eCommerce or self-service portal
Of those, 32% report over 25% of total order volume now comes through digital channels
The most-used features: real-time pricing, order history, and jobsite delivery scheduling
Takeaway:
eCommerce is no longer optional — it’s a revenue-driving and service-enhancing channel.
3. CRM Adoption Is Growing, But Usage Is Lagging
Customer relationship management (CRM) platforms are widely implemented, but many are still used as contact databases rather than sales intelligence tools.
Key Stats:
57% of distributors have a CRM system in place
Only 29% actively track customer engagement, pipeline status, or quote conversion using the platform
Integrations with ERP and marketing tools are key to increasing adoption
Takeaway:
CRM systems offer huge potential — but only when fully embedded in sales workflows.
4. Mobile Tools Are Reshaping Field Sales and Fulfillment
Mobility has become a priority for both customers and internal teams, especially as jobsite demands increase.
Key Stats:
66% of distributors provide mobile tools for their field sales or delivery teams
Mobile access to inventory, delivery schedules, and digital signatures has improved order accuracy by 18% on average
Contractors increasingly expect mobile access to quotes, invoices, and proof of delivery
Takeaway:
Mobile tools are enhancing jobsite efficiency, customer experience, and internal productivity.
5. AI and Predictive Analytics Are in Early, But Expanding, Adoption
Artificial intelligence is emerging as a strategic differentiator — especially in forecasting, dynamic pricing, and inventory planning.
Key Stats:
27% of distributors are currently piloting or using AI-powered forecasting or pricing tools
Early adopters report 10–20% gains in inventory accuracy and forecast precision
Common use cases include replenishment planning, customer churn prediction, and demand sensing
Takeaway:
AI adoption is still emerging — but data-driven decision-making is on the rise and gaining traction fast.
6. Integration Remains the #1 Barrier to Full Adoption
While individual platforms are in place, many distributors struggle with connecting systems to create a seamless digital ecosystem.
Key Stats:
68% of distributors cite “lack of integration” as a top barrier to tech ROI
Manual data transfer between ERP, CRM, and eCommerce platforms increases order cycle time and error rates
Companies with full-stack integration report higher customer satisfaction and lower administrative cost per order
Takeaway:
Tech investment alone isn’t enough — integration drives impact.
7. Investment Priorities Are Shifting Toward Customer Experience
Digital initiatives are no longer just about internal operations — they’re focused on how customers interact with the brand.
Key Stats:
54% of distributors rank “improving customer experience” as their top digital goal for 2025
Investments are going into digital catalogs, jobsite delivery tracking, and quote automation
Distributors offering superior digital experiences report higher retention and average order value
Takeaway:
Technology is becoming a frontline growth lever, not just a back-office tool.
Conclusion
Technology adoption among distributors is accelerating — but at varying speeds. The leaders are moving beyond systems implementation to true digital integration, using tech to improve customer service, empower sales teams, and make smarter operational decisions.
As the data shows, the next phase of digital transformation isn’t about which tools you buy — it’s about how deeply they’re adopted, connected, and aligned with strategy.
