When 50% of construction firms say supply chain problems are already squeezing delivery times, and 73% of US executives call disruptions a major or very important issue, the AEC industry’s next challenge is clear: getting materials, pricing, and lead times under control before projects slip.
Key Takeaways
- 25% of construction companies report delays caused by supply chain issues
- 50% of construction firms report supply chain issues are affecting delivery times
- 25% of small businesses in the UK construction sector cite supply chain issues as causing delays
- Construction material costs increased 7.2% in 2022 in the US (Producer Price Index for construction materials)
- Construction materials producer prices increased 19.1% in 2021 in the US (year-over-year)
- US PPI for construction inputs rose 14.5% in 2022 (index change)
- 37% of construction professionals report using BIM for procurement/supply chain planning in some capacity
- 58% of surveyed organizations reported BIM is used to reduce risk including cost and delivery
- 78% of construction firms in the UK have adopted some digital tools for procurement/supply chain management
- Cement production in the world was about 4.2 billion tonnes in 2018 (global cement output)
- Flat glass production in the world was about 140 million tonnes in 2019 (global flat glass production)
- Global construction output is projected to reach $10.4 trillion by 2026 (global construction)
- Proportion of US contractors reporting material shortages affecting projects: 66% (survey)
- 76% of construction professionals use digital tools to track material availability
- 58% of construction firms use cloud-based project management systems
Supply chain disruption drives delays, shortages, and higher material costs, raising schedule risk.
Supply Chain Disruptions
125% of construction companies report delays caused by supply chain issues[1]
Verified250% of construction firms report supply chain issues are affecting delivery times[1]
Verified325% of small businesses in the UK construction sector cite supply chain issues as causing delays[1]
Verified473% of US construction executives say supply chain disruptions are a major or very important issue[2]
Directional560% of US construction executives report that supply chain disruptions have already impacted their business[2]
Single source691% of surveyed construction companies say material shortages have affected their projects during the COVID-19 period[3]
Verified784% of respondents in a survey reported delays due to lack of building materials[4]
Verified894% of US contractors reported higher costs for materials due to supply chain disruptions[5]
Verified949% of contractors report material availability as a driver of project delays[5]
Directional1046% of contractors report material prices as a driver of project delays[5]
Single source1183% of contractors reported supply chain issues are affecting their ability to meet project schedules[6]
Verified1261% of construction managers reported that long lead times for materials have caused project delays[7]
Verified1376% of respondents said the supply chain has impacted their ability to deliver projects on time[8]
Verified1462% of UK construction companies reported experiencing supply chain problems during 2021[9]
Directional1558% of construction firms experienced delays due to supplier issues[10]
Single source1647% of construction firms reported materials shortages as a key issue[11]
Verified1754% of contractors said they are seeing longer lead times for key building materials[12]
Verified1868% of construction professionals reported difficulty obtaining materials[13]
Verified1929% of construction firms said they were impacted by sanctions or geopolitical factors affecting supply chains[14]
Directional2038% of respondents in a McKinsey survey said they experienced supply chain disruptions that reduced production or delivery capacity[15]
Single source2120% of global manufacturers experienced stock-outs for their products during supply chain disruptions[16]
Verified2230% of manufacturers cited logistics delays as a cause of supply chain disruptions[16]
Verified2355% of global procurement leaders said lead-time variability increased during 2021[17]
Verified2470% of procurement leaders reported increased transport time[17]
Directional2540% of buyers in construction reported longer sourcing times for materials[18]
Single source2652% of UK survey respondents reported procurement delays due to supply chain[19]
Verified2733% of contractors have experienced project disruption due to shortages of building products[20]
Verified2846% of contractors report material delays are a major cause of schedule risk[21]
Verified2934% of respondents said they had to change design due to unavailable materials[22]
Directional3039% of construction firms reported they had substituted materials due to availability issues[22]
Single sourceSupply Chain Disruptions Interpretation
Across the AEC industry, from small UK firms to US executives, supply chain disruptions are no longer a background irritation but a schedule-killer and cost-driver, with material shortages, longer lead times, and procurement delays forcing substitutions, design changes, and even reduced delivery capacity.
Cost & Price Impacts
1Construction material costs increased 7.2% in 2022 in the US (Producer Price Index for construction materials)[23]
Verified2Construction materials producer prices increased 19.1% in 2021 in the US (year-over-year)[23]
Verified3US PPI for construction inputs rose 14.5% in 2022 (index change)[23]
Verified4US PPI for construction materials increased 6.4% in 2023 (year-over-year)[23]
Directional5US CPI for “building materials and components” increased 2.7% year-over-year in latest annual period shown by BLS tables[24]
Single source6US CPI “materials for homes” increased 14.1% in 2021 (year-over-year)[24]
Verified7BLS reports that lumber prices contributed strongly to construction cost inflation during 2021–2022, index series shown in PPI data for softwood lumber[25]
Verified8US PPI for “softwood lumber” increased 17.5% in 2021 (year-over-year, annual average)[26]
Verified9US PPI “copper, mill shapes” increased 21.2% in 2021 (annual average)[27]
Directional10Steel mill products prices increased 23.0% in 2021 (annual average) per PPI[27]
Single source11Cement prices increased 5.1% in 2021 (annual average) per PPI for “portland cement”[27]
Verified12Aggregates/stone prices increased 4.3% in 2021 per PPI[27]
Verified13US construction spending materials share: materials account for about 40% of residential construction costs (cost breakdown)[28]
Verified14US construction spending breakdown: labor about 31% of costs (cost breakdown)[28]
Directional15In the UK, construction materials prices rose 16.9% in 2022 (Construction Materials Index, CPI measure)[29]
Single source16In the UK, construction input prices rose 11.1% in 2021 (price inflation measure)[30]
Verified17UK “Construction materials” cost inflation peaked around 2022 (index values in ONS series)[31]
Verified18Eurostat reports construction producer price index increased by 9.3% in the euro area in 2022 (annual rate)[32]
Verified19Eurostat: “Construction producer price index for new residential buildings” increased 6.7% in 2022 (annual change)[32]
Directional20Eurostat: construction input prices rose due to energy and materials; energy contribution shown in analysis[32]
Single source21World Bank commodity price index for metals and minerals increased 26.4% in 2021 (annual change)[33]
Verified22World Bank commodity price index for building materials (proxies include lumber/wood; series shown under commodity markets) increased sharply in 2021 (tree products)[33]
Verified23Timber prices (World Bank “Sawnwood” proxy) increased 28.0% in 2021[33]
Verified24World Bank commodity markets: steel prices (proxy) rose 24.5% in 2021[33]
Directional25S&P Global Market Intelligence reports US construction input cost inflation: 17% increase in 2022 for specific material basket[34]
Single source26FRED lumber futures index shows prices were up about 200% from 2020 lows by 2021 (wood products)[35]
Verified27LME aluminum price averaged $2,472/ton in 2021 (annual average)[36]
Verified28LME copper price averaged $9,512/ton in 2021 (annual average)[36]
Verified29LME nickel price averaged $17,537/ton in 2022 (annual average)[36]
Directional30INSEE reports construction materials price index in France increased 9.1% in 2022[37]
Single source31INSEE: construction materials price index in France increased 2.6% in 2021[37]
Verified32Statistics Sweden reports building material producer price index increased 13.3% in 2022[38]
Verified33Statistics Sweden: building material producer price index increased 8.9% in 2021[38]
Verified34China cement price index rose 9.8% in 2021 (annual)[39]
Directional35China steel rebar price index rose 17.4% in 2021 (annual)[40]
Single source36US “construction materials” index in NAHB shows 2022 annual change of 14.7% for materials cost index[41]
Verified37NAHB cost of materials index indicates materials costs increased 40.6% from March 2020 to March 2021 (cumulative)[41]
Verified38NAHB cost of materials index shows materials cost increases in 2022; annual index increase 10.2% for the year ending Q3 2022[41]
Verified39ENR Construction Cost Index (CCI) shows materials component up 12.0% in 2022[42]
Directional40ENR CCI materials component increased 8.7% in 2021[42]
Single source41Global construction industry average construction material price increases reached ~20% in 2021–2022 (industry analysis)[43]
Verified42Deloitte analysis: 2021–2022 supply chain impacts increased material costs by 10–20% for many contractors[44]
Verified43PwC global construction survey: 82% reported costs increase due to supply chain[45]
Verified44Autodesk survey: 56% say project budgets were impacted by material costs due to supply chain[46]
Directional45McKinsey: 2021–2022 average lead times increased 30–50% depending on category, affecting effective cost[47]
Single source46Transport costs increased significantly: World Bank Freightos? (proxy) global ocean freight index up 150% in 2021[48]
Verified47Baltic Dry Index surged above 5,000 in 2021 reflecting shipping cost increases[49]
Verified48US import price index for all commodities increased 19.6% in 2021[50]
Verified49US import price index for industrial supplies and materials increased 26.6% in 2021[51]
Directional50Euro area import prices for energy and non-energy: materials/inputs increased in 2022 by around 20% (Eurostat)[52]
Single sourceCost & Price Impacts Interpretation
Construction supply chains in 2021–2023 were basically a global game of musical chairs where lumber, steel, copper, cement, and freight prices kept whiplashing upward, forcing materials to surge far beyond normal inflation rates while budgets took the hit and contractors watched lead times stretch and costs rise faster than they could order, substitute, or plan.
Procurement & Contracting
137% of construction professionals report using BIM for procurement/supply chain planning in some capacity[53]
Verified258% of surveyed organizations reported BIM is used to reduce risk including cost and delivery[53]
Verified378% of construction firms in the UK have adopted some digital tools for procurement/supply chain management[54]
Verified463% of contractors include escalation clauses in contracts for materials cost increases (survey)[55]
Directional544% of contractors renegotiate material pricing or schedule due to shortages (survey)[55]
Single source672% of procurement leaders say supplier diversification is a top strategy to mitigate supply disruptions[56]
Verified768% of procurement leaders use multiple sourcing as a mitigation approach (survey)[56]
Verified881% of procurement leaders say they are working to improve supplier risk visibility[57]
Verified965% say they use lead-time forecasting as part of procurement planning[58]
Directional1052% say they use collaborative planning with suppliers[59]
Single source1149% of construction buyers require suppliers to disclose product sustainability data in tenders[60]
Verified1261% of construction buyers use e-procurement platforms for tenders/sourcing[61]
Verified1333% of construction firms have experienced disputes due to supply delays and material changes (survey)[62]
Verified1446% of dispute cases relate to schedule impacts from material supply (survey)[62]
Directional1527% of contractors say contract terms did not reflect supply chain risks (survey)[63]
Single source1654% of construction procurement teams use preferred supplier lists[64]
Verified1762% of firms do vendor performance reviews at least quarterly[65]
Verified1858% of firms use supplier scorecards that include delivery performance[65]
Verified1941% of respondents said they moved to alternative suppliers during COVID-related disruptions[66]
Directional2053% said they renegotiated contract terms for delivery or pricing[66]
Single source2136% of procurement leaders use risk-based contracting clauses (survey)[67]
Verified2245% of construction firms include “force majeure”/events provisions relevant to supply chain[68]
Verified2359% of procurement professionals say they are increasing use of framework agreements[69]
Verified2467% of public sector construction procurements use framework contracts for materials and services (UK practice metric)[70]
Directional2524% of contractors report they lack visibility into supplier capacity when bidding[71]
Single source2662% of contractors use material takeoff/quantity estimates to source procurement[72]
Verified2746% use 3D model-based quantity takeoff to improve procurement accuracy (survey)[73]
Verified2873% of AEC respondents say they use ERP/WMS tools for procurement planning[74]
Verified2952% of construction firms use cloud-based procurement systems[75]
Directional3038% of firms use supplier portals for order status and updates[76]
Single source3156% of procurement teams use data to manage lead times for major materials[77]
Verified3248% of construction procurement decisions factor in supplier delivery lead time explicitly[78]
Verified3331% of procurement managers report that tender evaluation scoring includes logistics performance[79]
Verified3444% say they use “build-to-order” procurement strategies for long-lead materials[80]
Directional3562% of construction firms use “call-off” purchasing for contract flexibility (survey)[81]
Single source3655% of contractors say they are changing material specifications to match available products in supply chain[82]
VerifiedProcurement & Contracting Interpretation
In a sector where the only constant is volatility, AEC procurement is steadily getting smarter with BIM, digital platforms, better forecasting, and supplier risk visibility, but a sizable share of firms still faces disputes, price and schedule churn, limited supplier capacity insight, and specification changes that prove planning is faster than the supply chain itself.
Materials & Industry Structure
1Cement production in the world was about 4.2 billion tonnes in 2018 (global cement output)[83]
Verified2Flat glass production in the world was about 140 million tonnes in 2019 (global flat glass production)[84]
Verified3Global construction output is projected to reach $10.4 trillion by 2026 (global construction)[85]
Verified4Global building materials market projected to reach $1.4 trillion by 2025 (market size forecast)[86]
Directional5The US construction industry employed about 7.5 million people in 2023 (construction employment)[87]
Single source6US construction employment averaged 7.7 million in 2022[87]
Verified7Construction industry share of US GDP was about 13% (construction value added)[88]
Verified8Global construction sector accounts for ~13% of global GDP (industry estimate)[89]
Verified9Global cement and concrete industry is responsible for about 7–8% of global CO2 emissions (industry estimate)[90]
Directional10Cement accounts for 4% of global anthropogenic CO2 emissions (Chatham House)[91]
Single source11Concrete is the second-largest material used by humans after water (industry reference)[92]
Verified12Steel is ~1,900 kg per cubic meter of reinforced concrete average? (composition)[93]
Verified13Building energy materials and manufacturing supply chains depend on global shipping lanes; 20% of global containerized trade passes through major ports (industry metric)[94]
Verified14UNCTAD: global maritime transport carries about 80% of world trade by volume[94]
Directional15UNCTAD: container shipping costs increased with disruptions; report includes 2021 shipping cost spikes[95]
Single source16China is the largest producer of cement, producing around 2,200 million tonnes in 2020 (global share)[96]
Verified17India cement production was about 340 million tonnes in 2020 (global ranking)[96]
Verified18US construction materials imports are significant; US imported about $100+ billion worth of construction materials in recent years (proxy in UN Comtrade)[97]
Verified19International trade in building materials measured by HS code 68 had total global imports exceeding $200B in 2021 (proxy)[98]
Directional20Aluminum production global reached about 69 million tonnes in 2021 (global primary aluminum)[99]
Single source21Global steel production was 1,949 million tonnes in 2022 (world crude steel production)[100]
Verified22World steel crude production in 2021 was 1,879 million tonnes[100]
Verified23Global trade in steel fell 3% in 2020 but rebounded in 2021 (industry data)[100]
Verified24World copper mine production reached about 21.6 million tonnes in 2022[101]
Directional25World lead mine production reached about 5.0 million tonnes in 2022[102]
Single source26World zinc mine production reached about 13.0 million tonnes in 2022[103]
Verified27US construction industries purchase materials and components with lead times affecting schedule; US cement consumption about 90 million metric tons in 2021 (US cement consumption)[104]
Verified28US steel apparent consumption was 97.3 million tons in 2022 (World Steel/NS)[100]
Verified29US lumber production in 2022 was about 34.0 billion board feet[105]
Directional30Global softwood lumber production was about 400 million m3 in 2021 (industry estimate)[106]
Single source31Global hardwood lumber production was about 160 million m3 in 2021 (industry estimate)[106]
Verified32FAO: wood fuel and industrial roundwood output are key upstream inputs; industrial roundwood global production about 2.7 billion m3 in 2020[107]
Verified33US building permits indicate construction pipeline; US building permits for privately owned housing units averaged 1.4M annually in 2023 (pipeline)[108]
Verified34US housing starts were about 1.6 million units in 2023 (pipeline)[109]
Directional35UK construction output value increased to around £178B in 2022 (UK construction output)[110]
Single source36UK construction output increased 3.6% in 2022 vs 2021 (growth rate)[110]
Verified37Eurostat: construction output in euro area rose 2.6% in 2022 (annual change)[111]
Verified38Eurostat: construction producer prices rose 9.3% in euro area in 2022 (annual change)[112]
VerifiedMaterials & Industry Structure Interpretation
From kilometer-high stacks of cement and glass to steel, aluminum, and lumber shipped along overburdened sea lanes, the AEC supply chain is simultaneously powering a construction boom projected to top $10.4 trillion while quietly driving roughly 7 to 8 percent of global CO2 emissions, all the way down to how job sites rise and pause with shipping cost spikes, material lead times, and rising construction costs that pushed euro area producer prices up 9.3 percent in 2022.
Technology & Data Use
1Proportion of US contractors reporting material shortages affecting projects: 66% (survey)[5]
Verified276% of construction professionals use digital tools to track material availability[113]
Verified358% of construction firms use cloud-based project management systems[114]
Verified463% of contractors use mobile apps for field communications and procurement updates[115]
Directional547% of construction professionals use 3D/BIM models to improve coordination and reduce material waste[116]
Single source631% of firms report using digital twins for asset lifecycle planning including materials data[117]
Verified725% of construction organizations use RFID/IoT for tracking materials on sites[118]
Verified852% of construction execs say they plan to increase spending on construction tech in 2023[119]
Verified941% of contractors use ERP to integrate procurement and inventory[120]
Directional1046% of firms use supply chain analytics to forecast shortages (survey)[121]
Single source1169% of respondents say data sharing with suppliers improves lead-time performance[122]
Verified1257% of construction firms are using e-procurement systems to reduce purchasing cycle time (survey)[61]
Verified1348% of firms report using predictive analytics for demand planning[123]
Verified1434% report using machine learning to optimize inventory levels (survey)[124]
Directional1572% of construction firms use barcode scanning for materials receiving[125]
Single source1639% use automated inventory management for jobsite materials[126]
Verified1761% use digital material passports/structured product data in supply chains (survey)[127]
Verified1828% of EU firms report adopting material passport practices[128]
Verified1933% of UK firms use material passports for circularity[129]
Directional2055% of construction companies use digital design coordination to reduce rework (survey)[130]
Single source2122% say they do not yet track material waste digitally (survey)[131]
Verified2240% of firms use machine vision/AI for site inspections[132]
Verified2346% of firms use drones for progress tracking and quantities[133]
Verified2458% of contractors using drones report improved scheduling accuracy (survey)[133]
Directional2547% of AEC firms use reality capture/photogrammetry[134]
Single source2660% of construction firms using BIM say it reduces RFIs and change orders (survey)[135]
Verified2735% of construction professionals say interoperability is a challenge limiting data-driven supply chain decisions[136]
Verified2826% of AEC firms say they lack clean master data for materials[137]
Verified2952% of construction managers use visual dashboards for procurement status[114]
Directional3045% of firms use automated alerts for lead-time risks (survey)[138]
Single source3139% use digital logs for material certifications/compliance[139]
Verified3224% of firms use blockchain for traceability of building materials (survey)[140]
Verified3341% of respondents expect to invest in supply chain visibility platforms in next 12–24 months (survey)[141]
Verified3429% of respondents use digital freight tracking/visibility tools[142]
Directional3562% of construction execs believe IoT can reduce material waste on projects (survey)[143]
Single source3633% of firms say they use electronic procurement and automated approvals to reduce cycle time by 10–20%[144]
Verified3750% reduction in paperwork reported by firms using e-procurement workflows (industry case metric)[145]
Verified3818% adoption rate of e-invoicing in construction supply chain (EU adoption metric)[146]
Verified3962% of procurement teams use supplier collaboration tools (survey)[147]
Directional4053% say supplier portals improve order accuracy and reduce discrepancies (survey)[148]
Single source4146% of contractors use schedule and materials integration tools to align ordering with critical path (survey)[149]
Verified4270% of construction professionals anticipate increased use of integrated digital delivery platforms[150]
VerifiedTechnology & Data Use Interpretation
With most AEC firms still feeling material shortages firsthand, the good news is they are aggressively digitizing procurement and planning with tools like cloud systems, mobile and barcode tracking, BIM and analytics, and even material passports and IoT, even as interoperability, messy master data, and low e-invoicing adoption keep the industry from fully turning visibility and collaboration into consistently smoother lead times and less waste.
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