The construction industry is one of the oldest industries. However, it is still the most underdeveloped in terms of its operation. While most of the businesses have made huge differences in their profits through online presence, the construction industry is still taking small steps. Realizing the aim of complete e-commerce construction industry seems a far-fetched goal to many. However, slowly, this industry is understanding how imperative it is to be in sync with the fast-paced economy.
Trends Shaping the Future of Construction Industry
The global economy has blown the siren for those who have not thought about shifting to digital economy from the industrial economy. Taking steps in the direction is all you have to do.
Here is the data from
- According to the research, the construction output globally is projected to rise by 85% by 2030.
- $15.5 trillion market is the overall projected growth.
- As per the further research, with annual growth of 3.9% (projected), construction is expected to exceed global GDP growth by more than 1%.
Does that ring the bell? With all the opportunities scattered for the construction industry in the future, the demand for construction material will rise with direct effect. For supplying the best construction material at cheaper cost and in faster possible time, you must tap in the e-commerce platform.
Challenges Faced by Construction Suppliers
The construction industry eco-system is highly competitive. However, apart from the competition, there are many challenges faced by distributors, which are threatening their business.
Recurrent Demand: It is very common to keep the material demand constant. Even the seasons have a huge effect on this sector.
Change in Demand for Particular Product at Certain Time: Trends change. Even a slight change in trend can turn up for a complete demand change for a specific product. To stay in the competition, one must identify these changes in trend before they stock their warehouse with outdated materials used for construction.
Best Practices for Construction Industries
Although the challenges are threatening, employing best practices definitely turn the game to your side.
Monitor the Changes: If you are a supplier of building material, you cannot cross the road alone. You must have connections with all levels within the trade. This will help you monitor the change in trend and will keep you prepared for your next move. Either it’s the emerging trend or the declining trend, you must acquire knowledge of the situation beforehand.
Be in Sync with the Real-Time Data: Either it’s analyzing the past data or comparing it with the current one, you must have a system in place that can automate that process for easy access. Sometimes, we pay more in tax than we make a profit from a certain project. Hence, it is wise to have transparency in your own system.
Challenges Specific to Taxation
Calculation of tax and convert it into savings is a huge concern with construction industries. Here are few glitches that may happen, and you may end up experiencing loss.
Tax Deduction and Calculation Challenges: There are different rules for sales tax deduction in different states. For example, some states ask to deduct sales tax from the construction companies who are purchasing material from you. However, in some state, the real estate companies are considered as a reseller and are not liable to pay sales tax on their orders. You must know when to deduct sales tax from your client and when not to.
Operations in the Multiple States: If you are handling projects in different states, you may have to follow tax obligations levied by all of them. Not only the different state has a different threshold of requirements, but you will also be devastated to know that tax calculation processes may differ because of difference in guidelines.
Thankfully, there are solutions for all your workload related to tax calculation. i95Dev provides integration of Magento and ERP to let different construction companies take advantage of the e-commerce shift as the e-commerce shift keeping their business model and tax calculation strategies intact.
We implemented the solution for one of our clients, the largest independent distributor of construction material and products. Not only the client deals with multiple products, but the company also operates from multiple locations.
The tax solution that we provided has multiple benefits. From reducing the manual resources to preside calculation with utmost savings is the forte of our solution. Here are some of the custom tax rules we provided to our customers.
- Tax calculation on order review page in Magento based on custom rules
- Transfers the applied tax groups to ERP when the order is synced back to ERP from Magento
- Magento side configuration to set up tax calculation before discount or after discount
With the space for improvement and enhancement available, customs tax solution can be the wingman for e-commerce construction industry operations. You have the basic design ready for your construction industry in the shape of the e-commerce platform. To help scale it, even more, a tax solution is all you need.
i95Dev will help you with the integration of Magento and ERP to provide the custom tax solution according to your industry standards. No matter the business model or the tax methods, you follow. You can still taste the freedom to explore the diversified options for reaching your expected solution.
The Custom workflows required for managing taxes can be effortlessly executed with the help of i95Dev’s connector. As in the case of the above customer, we helped solve tax-related issues in Dynamics AX. The uncertainties should have no room in the business tax calculation. And, to overcome the challenges, an automated setup with minimal manual interference is what e-commerce construction industry requires.
Do you wish to know more? Let i95Dev assist you with the complete information.