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Overcoming Tapering Industry Growth for Building Materials Manufacturers

Published February 25 2020
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For years the construction industry has seen rapid growth; however, that growth is beginning to slow. Compared to 2018, manufacturers’ outlook for the future has dropped significantly, from a 93.5 percent positive outlook in Q1 of 2018 to 68 percent in Q3 of 2019, according to the National Association of Manufacturers’ Outlook Survey. Additionally, the National Association of Manufactures’ Outlook Survey stated, for the seventh straight year, there has been an inability to attract and retain a quality workforce as a top business concern not aiding in positive growth. Along with these concerns, AIA’s Consensus Construction Forecast points to the odds of a mid-2020 recession fueling a “mixed” outlook by manufacturers tied to the construction industry. 

If these statistics weren’t enough, in August of 2019, the U.S manufacturing PMI (purchasing managers’ index) dropped below the neutral 50.0 threshold for the first time in a decade. Nevertheless, every industry has its ups and downs and despite what may seem like slight doom and gloom for those in the construction industry, there are ways of staying afloat regardless of what’s going on elsewhere.

How we can help:

While there is no magic during a downturn, increasing efficiency, productivity, making the right business decisions and lowering costs can have a dramatic effect and cushion the blow. Having strong technology and business processes will equip your organization with what it needs to maintain and improve an efficient, productive business. Microsoft Dynamics 365, an ERP and CRM software application, empowers users to improve decision making productivity, and help building materials manufacturers achieve competitive advantage. In addition, providing up-to-date tools to those in your workforce helps attract new employees that expect state of the art systems.

Dynamics 365 provides out-of-the-box business intelligence capabilities and dashboards that allow users to integrate information across multiple platforms, make proactive decisions with real-time data, and collaborate across multiple channels within complex operations. Microsoft Dynamics 365 goes way beyond traditional systems by incorporating predictive capability via Artificial Intelligence.

Download this eBook as it looks at manufacturing market sectors which are particularly impacted by fluctuations in construction activity — and examines the challenges they share. It also presents how Microsoft Dynamics solutions can be effective tools for building products manufacturers to meet those challenges head-on as they pursue their enterprise objectives.


1 “Manufacturers’ Outlook Rosier Than Ever Thanks to Tax Reform,” The Hill,, April 13, 2018
2 “Disaster costs jumped over 60% this year to $306 billion,” CNN Money,, December 20, 2017.
3 “Skilled-labor shortage to impact post-Harvey rebuilding effort,” Construction Dive,, September 6, 2017.