91% of Construction Projects Struggle With Import Cost Volatility

The construction industry is experiencing a systemic challenge: freight cost volatility driven by fragmented logistics networks is disrupting project economics across the board. Nearly nine-in-ten construction projects report being negatively impacted by unpredictable import pricing, reflecting a broader structural inefficiency in how construction materials and equipment move through supply chains. This fragmentation, characterized by multiple carriers, unclear pricing mechanisms, and inefficient consolidation, creates an environment where projects cannot accurately forecast transportation costs, forcing builders to either absorb unexpected expenses or delay starts.

The root cause lies in the construction sector's reliance on small-to-medium shipments of diverse materials from multiple geographies. Unlike containerized industries that benefit from standardized logistics networks, construction supply chains remain largely fragmented, with no dominant consolidation platforms. This means each project negotiates rates independently, lacks volume leverage, and faces exposure to fuel surcharges, capacity constraints, and regional bottlenecks that shift costs unpredictably.

For supply chain professionals, this signals an urgent need to either consolidate suppliers geographically, invest in strategic logistics partnerships that offer rate certainty, or shift procurement timelines to absorb price volatility without project delays. Companies that can build predictability into construction material flows, through long-term freight contracts, nearshoring initiatives, or collaborative procurement groups, will gain competitive advantage as margins compress under freight pressure.