As we move deeper into 2025, new building regulations are having a growing influence on what gets built — and what materials are used to build it. From energy efficiency and climate resilience to fire safety and low-emission standards, regulatory updates are reshaping product demand across the construction supply chain.
But what’s behind this surge in new codes and mandates? What forces are driving regulators to change the rules — and how should suppliers and distributors respond?
In this article, we explore the key drivers fueling new building regulations in 2025 and how those drivers are reshaping demand for specific products in the construction industry.
1. Climate Policy and Environmental Mandates
Governments are under increasing pressure to meet national and global climate targets — and the built environment is a major focus area. In response, regulators are introducing energy performance standards, emissions caps, and material sustainability requirements.
Key Effects on Product Demand:
Increased use of high R-value insulation, air barriers, and energy-efficient windows
Growing demand for low-carbon concrete, recycled steel, and FSC-certified lumber
Mandates for solar-ready roofs, electric vehicle infrastructure, and cool roofing materials
Why It Matters: Climate policy is turning sustainability from a “nice to have” into a compliance requirement, fueling demand for green-certified and eco-friendly materials.
2. Natural Disasters and Resilience Standards
With wildfires, floods, hurricanes, and extreme weather on the rise, building codes are being updated to prioritize safety, durability, and resilience. Local jurisdictions are tightening regulations based on regional risks.
Key Effects on Product Demand:
More projects requiring fire-rated siding, roofing, and insulation
Increased use of wind-resistant fasteners, hurricane straps, and impact-rated windows
Uptick in flood-resistant materials in coastal and river-adjacent zones
Why It Matters: Builders and developers must now design for resilience — and the materials they choose need to support that requirement.
3. Energy Efficiency and Electrification Initiatives
To reduce carbon emissions and reliance on fossil fuels, many states are enacting building energy codes and electrification mandates. These rules are pushing new standards for mechanical systems, insulation, and building envelopes.
Key Effects on Product Demand:
Growing market for heat pump-compatible HVAC systems
Expanded use of air sealing, smart thermostats, and energy-monitoring devices
Rise in demand for all-electric appliance hookups and pre-wired EV charging systems
Why It Matters: Energy efficiency is becoming embedded in every project type — from single-family homes to schools and warehouses — driving new baseline expectations for product performance.
4. Public Sector Procurement Requirements
Governments are using their purchasing power to shape the market. Many public infrastructure and institutional projects now require compliance with sustainability and domestic sourcing policies, such as Buy Clean and Buy America.
Key Effects on Product Demand:
Higher demand for locally sourced or U.S.-made products
Specification of materials with Environmental Product Declarations (EPDs)
Pre-qualification of vendors who can meet documentation and transparency standards
Why It Matters: If your products can’t meet these specs, you may be excluded from bidding or long-term supply agreements.
5. Building Code Updates and Model Code Adoption
As national model codes like the International Building Code (IBC), International Energy Conservation Code (IECC), and local green codes are updated, municipalities adopt new editions that introduce stricter requirements.
Key Effects on Product Demand:
Introduction of minimum performance thresholds for materials like insulation, windows, and roofing
Greater scrutiny of product documentation, test results, and certifications
Displacement of legacy products that no longer meet the updated code
Why It Matters: Regulatory updates force the industry to move forward — and distributors who plan ahead can stock and promote compliant products before the competition.
6. ESG Pressures from Developers and Builders
Even in the absence of government mandates, large developers, general contractors, and architects are adopting environmental, social, and governance (ESG) goals that go beyond compliance.
Key Effects on Product Demand:
Preference for products that are recyclable, non-toxic, or rapidly renewable
Requirement for supply chain transparency (e.g., where and how materials are made)
Sourcing decisions tied to lifecycle emissions and embodied carbon
Why It Matters: These private-sector initiatives are often faster-moving and stricter than public mandates — but just as impactful on material selection.
7. Health and Indoor Air Quality Standards
Post-pandemic health awareness has accelerated regulations related to indoor air quality, material off-gassing, and occupant wellness, particularly in schools, healthcare, and commercial projects.
Key Effects on Product Demand:
Increased use of low-VOC paints, adhesives, and finishes
Demand for anti-microbial surfaces, high-MERV filters, and ventilation components
Certification requirements like WELL or Fitwel compliance
Why It Matters: Products that support occupant wellness are seeing higher demand across all building types — not just healthcare or LEED projects.
Conclusion
The regulatory landscape in 2025 is being shaped by a combination of climate action, disaster preparedness, public procurement rules, and private-sector ESG goals. These forces are pushing the construction industry toward higher performance, greater transparency, and more resilient building systems.
For suppliers and distributors, the opportunity is clear: adapt early, educate customers, and stock the products that align with tomorrow’s codes — today.
