The Power of Supplier Resilience

It’s been a tough few years for businesses in construction. Businesses have faced one black swan event after another: Brexit, Covid-19, climate emergencies and geopolitical tensions have all affected global supply chains.

The UK economy has not been at its healthiest, with persistent inflation, elevated interest rates and sluggish growth. The construction sector has seen higher financing costs, a slowdown in new housing starts, delays on non-domestic projects and tighter margins due to rising material and labour costs.

And then there is Donald Trump, who has shaken - to the core - belief in a globalised model of an interconnected, just-in-time, borderless world (one without trade barriers) - challenging supply chains and all who depend on them.

Navigating an unpredictable world

If the last decade has taught us anything, it’s that the future is inherently unpredictable. The construction sector, however, thrives on stability and relies on long-term planning. It’s also, by its physical nature, less adaptable than many other sectors, so the prospect of more uncertainty and further supply chain disruption has been anything but welcome.

In this landscape, the ability to adapt quickly when the unexpected happens is key. Resilience is not just about weathering the storm but about adapting and thriving in uncertainty. We can’t predict the future - but we can prepare for it.

Resilience across the supply chain

In construction, this means having the systems, the relationships and the mindset to absorb shocks and bounce back stronger. It’s about building flexibility into supply chains, maintaining strong financial fundamentals, reviewing stockholding and investing in both technology and workforce.

Manufacturers, merchants, contractors and developers all look to suppliers to ensure continuity of supply, so they can continue to deliver to their customers. Specifically, to suppliers who build resilience into their operations to ensure that supply is not disrupted when an unexpected event occurs.

Collaborative relationships with suppliers allow customers to get early warnings about potential shortages or price hikes, while suppliers get valuable reactions from the market in return. Such relationships can reduce exposure to international shocks.

What to prepare for

How do you prepare when you don’t know what to prepare for? Well, what you need in a fast-changing landscape is up-to-date insight, customer/prospect data and market knowledge. Market research twinned with robust data, helps businesses spot shifts in trends, moods or competitor behaviour before they become serious threats.

Resilient businesses stay aligned with evolving customer priorities. Customer research reveals shifts in demand, customers’ pain points and opportunities for new products or service. It also helps businesses diversify to reduce risk. If one sector becomes volatile, having insight or inroads into others can soften the blow.

Competitive benchmarking helps businesses gain an understanding how others are responding to challenges and avoid blind spots. This type of research lets you learn from others’ successes and failures, spot gaps in your own offering, stay competitive and agile.

Market research empowers businesses to see around corners and respond with agility when the landscape shifts. With solid market data, businesses can make smarter decisions on investments, pricing and product development while minimising risk. Resilient businesses make data-backed decisions - not guesses.

Uncertainty is the new certainty

We’re unlikely to see a return to the conditions that created 30 years of steady growth. Just in time supply with minimal stockholding has given way to the need for resilience and business continuity, to trade through disturbances and turmoil.

After decades of relative stability, construction needs to expect the unexpected and plan for volatility, not stability.

Resilience requires proactive investment, and the focus is often on crisis prevention, continuity and cost. But resilience also equals competitive advantage.

In an era of uncertainty, the businesses that thrive will be flexible, informed and rapidly adapt to changes – deepening existing customer relationships, whilst continuously engaging with new prospect audiences.