GITNUXREPORT 2025

Supply Chain In The Building Industry Statistics

Supply chain disruptions delay projects, increase costs, and hinder construction progress.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Construction material costs represent approximately 60-70% of total project costs

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The use of prefabricated building components can reduce construction time by up to 30%

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65% of construction firms reported increased supply chain costs in 2022

Statistic 4

Prefabrication can cut project costs by up to 20%

Statistic 5

An estimated 15% of construction materials are wasted during projects, contributing to supply chain inefficiencies

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70% of construction companies reported increased costs due to transportation delays in 2023

Statistic 7

Supply chain disruptions in the building industry led to an estimated USD 100 billion in additional costs globally in 2022

Statistic 8

The integration of IoT devices in building sites can reduce material theft by up to 40%

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Construction material prices saw an average increase of 15% in 2022, impacting project budgets across sectors

Statistic 10

The use of 3D printing in construction can lead to cost savings of up to 40%

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45% of delays in building projects are due to supply chain disruptions

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Material shortages caused delays in 72% of recent construction projects

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50% of construction project delays are attributed to supply chain issues

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40% of suppliers experienced inventory shortages during 2022, impacting project timelines

Statistic 15

Supply chain disruptions caused an average project delay of 3.5 months in 2022

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42% of delay-causing supply chain issues in construction are due to supplier insolvency or financial instability

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25% of construction companies reported that supply chain delays caused contract disputes in 2022

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45% of building projects face delays due to procurement issues

Statistic 19

Approximately 68% of construction firms reported that supply chain issues have led to increased safety concerns on sites

Statistic 20

The average cost of a construction project overrun due to supply chain delays is approximately 12%

Statistic 21

The global construction industry is expected to grow at a CAGR of 8.4% from 2021 to 2028

Statistic 22

80% of construction companies plan to increase investment in supply chain resilience in the next two years

Statistic 23

The global building information modeling (BIM) market is expected to reach USD 11.7 billion by 2027

Statistic 24

Construction industry waste management market is expected to reach USD 1.2 billion by 2025

Statistic 25

The proportion of modular construction projects is expected to grow to 25% of the global new construction market by 2025

Statistic 26

52% of project managers believe supply chain issues will worsen in the next 12 months

Statistic 27

Forecasts suggest that by 2030, 50% of all new building projects will utilize some form of modular or prefabricated construction

Statistic 28

90% of contractors believe that supply chain disruptions will remain an ongoing challenge in the next five years

Statistic 29

The global construction supply chain management market size was valued at USD 3.3 billion in 2020 and is expected to grow significantly

Statistic 30

The adoption rate of digital supply chain solutions in construction is projected to reach 55% by 2027

Statistic 31

60% of contractors report difficulties in sourcing specific construction materials like steel and lumber

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30% of construction supply chain disruptions are due to logistical challenges

Statistic 33

Around 65% of construction firms are exploring digital twin technology to improve supply chain management

Statistic 34

The use of AI in supply chain management can reduce procurement costs by up to 25%

Statistic 35

55% of construction firms increased their use of local suppliers to mitigate supply chain risks

Statistic 36

The average inventory turnover rate for construction materials is approximately 4 times per year

Statistic 37

78% of construction projects that adopt digital supply chain solutions report improved project predictability

Statistic 38

The construction industry is projected to invest over USD 500 billion in supply chain digitalization by 2030

Statistic 39

35% of construction firms experienced cyber-attacks targeting supply chain systems in 2022

Statistic 40

The average lead time for delivering key building materials increased by 15% in 2022

Statistic 41

60% of construction firms are adopting lean construction principles to improve supply chain efficiency

Statistic 42

48% of supply chain disruptions are caused by weather-related events

Statistic 43

80% of contractors plan to increase investment in supply chain transparency tools by 2025

Statistic 44

60% of construction supply chains use real-time tracking technology for materials

Statistic 45

Heavy reliance on global supply chains has increased vulnerability to geopolitical risks, according to 57% of construction executives

Statistic 46

Supply chain digitalization in construction can reduce administrative costs by up to 30%

Statistic 47

30% of construction firms report difficulty in managing supplier relationships effectively

Statistic 48

74% of construction companies see supply chain management as a key factor in project success

Statistic 49

Approximately 35% of construction companies use blockchain to improve supply chain transparency

Statistic 50

Construction debris and waste management account for about 30% of landfill waste

Statistic 51

The demand for sustainable and eco-friendly materials has increased supply chain complexity, with 40% of projects citing sustainability as a challenge

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Key Highlights

The global construction industry is expected to grow at a CAGR of 8.4% from 2021 to 2028
Construction material costs represent approximately 60-70% of total project costs
45% of delays in building projects are due to supply chain disruptions
The use of prefabricated building components can reduce construction time by up to 30%
65% of construction firms reported increased supply chain costs in 2022
The global construction supply chain management market size was valued at USD 3.3 billion in 2020 and is expected to grow significantly
Material shortages caused delays in 72% of recent construction projects
The adoption rate of digital supply chain solutions in construction is projected to reach 55% by 2027
80% of construction companies plan to increase investment in supply chain resilience in the next two years
Construction debris and waste management account for about 30% of landfill waste
50% of construction project delays are attributed to supply chain issues
60% of contractors report difficulties in sourcing specific construction materials like steel and lumber
40% of suppliers experienced inventory shortages during 2022, impacting project timelines

The booming construction industry, projected to grow at an 8.4% CAGR through 2028, faces staggering supply chain challenges—from material shortages causing delays in 72% of projects to costs soaring by 15% in 2022—highlighting the urgent need for innovative digital solutions to build resilience and efficiency.

Construction Costs and Material Efficiency

Construction material costs represent approximately 60-70% of total project costs
The use of prefabricated building components can reduce construction time by up to 30%
65% of construction firms reported increased supply chain costs in 2022
Prefabrication can cut project costs by up to 20%
An estimated 15% of construction materials are wasted during projects, contributing to supply chain inefficiencies
70% of construction companies reported increased costs due to transportation delays in 2023
Supply chain disruptions in the building industry led to an estimated USD 100 billion in additional costs globally in 2022
The integration of IoT devices in building sites can reduce material theft by up to 40%
Construction material prices saw an average increase of 15% in 2022, impacting project budgets across sectors
The use of 3D printing in construction can lead to cost savings of up to 40%

Construction Costs and Material Efficiency Interpretation

Amid escalating costs—driven by supply chain disruptions, transportation delays, and material inefficiencies—embracing innovative solutions like prefabrication, IoT, and 3D printing offers not just a pathway to cost savings of up to 40%, but also a vital strategy to keep the building industry from stacking up increased expenses and wasted resources as its foundation.

Construction Project Delays and Challenges

45% of delays in building projects are due to supply chain disruptions
Material shortages caused delays in 72% of recent construction projects
50% of construction project delays are attributed to supply chain issues
40% of suppliers experienced inventory shortages during 2022, impacting project timelines
Supply chain disruptions caused an average project delay of 3.5 months in 2022
42% of delay-causing supply chain issues in construction are due to supplier insolvency or financial instability
25% of construction companies reported that supply chain delays caused contract disputes in 2022
45% of building projects face delays due to procurement issues
Approximately 68% of construction firms reported that supply chain issues have led to increased safety concerns on sites
The average cost of a construction project overrun due to supply chain delays is approximately 12%

Construction Project Delays and Challenges Interpretation

With nearly half of building project delays rooted in supply chain chaos—ranging from material shortages to supplier insolvencies—it's clear that construction's greatest bottleneck isn't just brick and mortar, but the fragile web that sustains it; as delays extend from months to safety concerns and cost overruns, stakeholders must prioritize resilient supply networks or face a future where progress is halted before the first brick is laid.

Industry Trends and Market Outlook

The global construction industry is expected to grow at a CAGR of 8.4% from 2021 to 2028
80% of construction companies plan to increase investment in supply chain resilience in the next two years
The global building information modeling (BIM) market is expected to reach USD 11.7 billion by 2027
Construction industry waste management market is expected to reach USD 1.2 billion by 2025
The proportion of modular construction projects is expected to grow to 25% of the global new construction market by 2025
52% of project managers believe supply chain issues will worsen in the next 12 months
Forecasts suggest that by 2030, 50% of all new building projects will utilize some form of modular or prefabricated construction
90% of contractors believe that supply chain disruptions will remain an ongoing challenge in the next five years

Industry Trends and Market Outlook Interpretation

As the global construction industry accelerates towards a future where modular building, BIM, and resilient supply chains dominate, it’s clear that overcoming supply chain disruptions is no longer a matter of if, but when—and those who adapt swiftly will build the most sustainable and efficient skylines of tomorrow.

Supply Chain Management and Digitalization

The global construction supply chain management market size was valued at USD 3.3 billion in 2020 and is expected to grow significantly
The adoption rate of digital supply chain solutions in construction is projected to reach 55% by 2027
60% of contractors report difficulties in sourcing specific construction materials like steel and lumber
30% of construction supply chain disruptions are due to logistical challenges
Around 65% of construction firms are exploring digital twin technology to improve supply chain management
The use of AI in supply chain management can reduce procurement costs by up to 25%
55% of construction firms increased their use of local suppliers to mitigate supply chain risks
The average inventory turnover rate for construction materials is approximately 4 times per year
78% of construction projects that adopt digital supply chain solutions report improved project predictability
The construction industry is projected to invest over USD 500 billion in supply chain digitalization by 2030
35% of construction firms experienced cyber-attacks targeting supply chain systems in 2022
The average lead time for delivering key building materials increased by 15% in 2022
60% of construction firms are adopting lean construction principles to improve supply chain efficiency
48% of supply chain disruptions are caused by weather-related events
80% of contractors plan to increase investment in supply chain transparency tools by 2025
60% of construction supply chains use real-time tracking technology for materials
Heavy reliance on global supply chains has increased vulnerability to geopolitical risks, according to 57% of construction executives
Supply chain digitalization in construction can reduce administrative costs by up to 30%
30% of construction firms report difficulty in managing supplier relationships effectively
74% of construction companies see supply chain management as a key factor in project success
Approximately 35% of construction companies use blockchain to improve supply chain transparency

Supply Chain Management and Digitalization Interpretation

As construction supply chains brace for a digital revolution — fueled by AI, digital twins, and real-time tracking — the industry is betting that transparency, innovation, and resilience will be the blueprint for building a safer, smarter future, even as geopolitical and weather-related challenges threaten to topple the scaffolding.

Sustainability and Future Innovations

Construction debris and waste management account for about 30% of landfill waste
The demand for sustainable and eco-friendly materials has increased supply chain complexity, with 40% of projects citing sustainability as a challenge

Sustainability and Future Innovations Interpretation

The construction industry's heavy footprint is clear: with nearly a third of landfill waste stemming from debris and a growing push for eco-friendly materials complicating supply chains—cited by 40% of projects—it's time to rebuild the supply chain with sustainability at its core or face a landfill-filled future.