How To Start A Construction Supply Business?

How To Start A Construction Supply Business
4. Get a License before executing your building material business plan. – It is important to get a license from your state’s authority before you start the business. Industry-based business registration is mandatory for Micro, Small, and Medium Enterprises.

Is building material business profitable in India?

Building material business profit margin – In the Building material business, you can expect a profit margin of 10% on your revenue. This business is a high volume low margin kind of business. Generally, the construction materials are sold in bulk quantity for low margins.

For example, in a 50kg cement bag, you get a 10 to 20 rupees margin and in bricks one rupee per brick and in steel bars one rupee per kilogram, etc. Usually, the orders placed by the builders are of high volume but you have to give them big discounts because of the competition in the market. Therefore, you can earn 6 to 7 lakh rupees annually in the building materials business.

Of course, if you run the business on a large scale, then you can earn more profit. Related Posts:

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What is the number 1 building material in the world?

Greening the World’s Most Ubiquitous Building Material Concrete is one of the oldest building materials with a history dating back to ancient Egypt. Today, concrete – comprised primarily of water, aggregate and cement – is the most widely used material in the world.

Despite being a fairly low-impact material environmentally speaking, creating concrete still takes energy; thus the wide deployment of the material is reflected in its significant carbon footprint. In response, the industry is beginning to pursue more eco-friendly versions that would help curb energy requirements, and they’re using supercomputers to do it.

As part of a recent study, scientists from the the National Institute of Standards and Technology (NIST), the University of Strasbourg and Sika Corporation ran advanced simulations on Department of Energy supercomputers to explore methods for achieving less energy-intensive concrete mixtures.

As explained in this, the study is targeting an essential ingredient in concrete: the binding agent that causes cement to harden when it comes in contact with water. The process of manufacturing this binding agent in high-temperature kilns generates a significant amount of carbon dioxide, a greenhouse gas implicated in climate change.

The World Business Council for Sustainable Development estimates that worldwide cement manufacturing is responsible for at least 5 percent of man-made carbon dioxide emissions. The concrete industry is working on manufacturing processes for concrete that are less energy-intensive.

One approach is to use replace augment the mixture with alternative materials like fly ash, but this requires supplementation with expensive chemical additives. There is a push to customize these chemical additives to facilitate the use of alternative materials, ultimately producing a quality cement product that maintains desirable flow qualities all while using less energy.

“We’d like to be able to design concrete that performs better on the job and doesn’t demand so much energy to manufacture,” says NIST computer scientist William George. “But what should we make it from? And what can we replace cement with? The answers will affect its properties.

  1. So we realized we needed to learn more about how suspensions work.” Studying how particles and fluid interact and behave is mathematically and compute-intensive, requiring sophisticated simulations and the computing power to run them.
  2. This is where the DOE’s leadership-class supercomputers come in.
  3. As part of an INCITE Award, the NIST team was granted more than 110 million core hours at the Argonne Leadership Computing Facility.
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The team ran simulations that revealed how parameters – like the size and number of suspended particles – affect the concrete suspension. The study yielded important clues about how fresh concrete will behave given the properties of the fluid that is used.

How much will it cost to start building materials business?

5. Calculate the cost of setting up the business and prepare your budget accordingly – Before calculating the cost, determine the scale of your business. Decide whether you want to start small or big. Know that you’ll need a minimum of INR 10 to 12 lakhs initially.

However, it is considered one of the best business ideas. You can make good money only if you are smart with your strategies and planning. It isn’t mandatory to maintain stock of every construction material. Suppose you have a tight budget and choose to stock a limited number of materials with a higher demand comparatively.

If you round off on starting a large-scale building material business, then you’ll need at least INR 40 lakhs when starting up.

What is a Type 5 construction?

Type V Construction: Wood-Frame – Type V buildings are the most combustible construction type on this list. It is the only category of construction that allows combustible exterior walls as well as combustible structural members on the interior. Frames, walls, floors, and roofs are made entirely or partly out of wood.

These building elements are cheaper to develop and increasingly common in the construction of single-family homes and garages. These structural elements can be particularly worrisome to firefighters, as exposed wood offers no fire resistance. If a fire starts, the building will ignite significantly. These buildings may be somewhat resistant to collapse unless it is a lightweight construction.

In that case, it will collapse within minutes of a fire breaking out.

Who is the largest building supply company in the world?

Largest building material companies by market cap

# Name C.
1 Holcim Group 1HOLN.SW 🇨🇭
2 Cement Roadstone Holding 2CRH 🇮🇪
3 Vulcan Materials 3VMC 🇺🇸
4 Martin Marietta 4MLM 🇺🇸

Is of building material profitable?

The construction industry has several money-spinning, unique business ideas, and supplying building materials is one of them. In the past few years, building and construction work has seen a steep rise in India. Resultantly, the building material business saw a huge upsurge, and the people supplying these materials are making huge profits.

Is selling of building materials profitable?

How Can I Start A Building Materials Business In Nigeria?

  • How Can I Start A Building Materials Business In Nigeria?
  • Building materials will always be in demand, hence, the production and sales of building materials is understandably a profitable business venture to start up in Nigeria.
  • So, to the question; “how can I start a building materials business in Nigeria?”
  • Well, easier than most


To niche or not: The building materials business is quite broad sectored, so you will have to decide whether to work with a particular line or to work with several. Of course, it is always recommended to go with a particular niche so as to gain experience and expertise in it; but then the choice is yours.

Niching simply helps you focus on a particular line; and thus accelerate your experience and expertise in that line, in a way that you can become recognized as an expert in that niche.

Register your business name: For a building materials business? Yes Sir. You want to appear professional. You see, if you study customer trends, you will understand how people perceive registered brands and get to use it to your advantage. I mean, the benefits of registering your business are numerous. Outside the fact that most businesses will rather do business transactions with registered brands. Number two: there is absolutely no way you can get a government contract if your business is not properly incorporated. The whole process is just a matter of getting to any CAC office nearest to you and having your company registered, or you can just download the form online by visiting

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Enough said.

Prepare your business plan: Now, to effectively run your business; you must prepare a business plan that will be used to implement your business idea effectively. Your business plan should include a description of your company, its product offering, services ( if any), your marketing strategy, competitor analysis, your goals and objectives, and detailed feasibility studies.

Choosing a suitable location: A bad location is the bane of every business. Look out for how location will affect your business. And in most cases, the location of your building material business will, to a large extent, determine how successful and profitable your business becomes. You could consider locating your business in a newly developing site as developers will prefer to do business transactions with you than to incur extra costs from getting supplies afar. Nonetheless, it’s a good idea to observe the trends as some building materials are good in certain locations, while some others tend to thrive well in specific locations. For instance; a cement business is best located near a new and developing site. Just observe and follow trends and you’re good to go.

Getting a shop space: Find a secure space such as a container, an open space, a shop, or even a warehouse to store your merchandise and to operate your business from. Depending on the kind of goods you’re into, getting a shop may not be necessary. An example is a material like rods or iron; which may not require a shop or warehouse, although you may have to get a space for clerical activities and hosting your customers. In any case, you need to be able to weigh your options and decide on the best option to suit your business needs.

Find a supplier: There are so many building materials suppliers in operation in Nigeria. Although, most building materials dealers often order for their goods from countries like China, due to the fact that it has a higher profit margin. You could look up online sites like to make orders. Alternatively, you should find out from other businesses from where they source their goods. Just look for a supplier that works for you to negotiate a business deal with them. It is recommended that you stick to and develop a budding business relationship with a particular supplier that you will be partnering with; as the benefits of having a regular supplier are immense.


Investigate the business: T he most important key to succeeding in the building materials business is getting all sorts of information about the running of the business in Nigeria; this should come without saying. Your mastery of the peculiar intricacies of your business will accelerate your success. Work on establishing meaning relationships with other businesses in your niche; ask questions, be submissive; people tend to give out information more readily to people who seem dependent. So over to you.

Buying and selling your building materials: Once the aspects above have been fully settled, you’re ready to start making your money. A fast way of doing this is always being on the lookout for buyers. Don’t sit around all day expecting people to do business with you. Instead, step out and grab your own share of the market. Trust me, it can both be fun and challenging at the same time. Look at it this way; isn’t it better to have customers in-waiting, than goods in-waiting? You tell me.

Some other requirements: These other requirements will help cement your business standard.

  • A delivery truck. This will serve as another source of revenue for your business. By delivering goods to your customers, you get to charge a token; which works well for both you and your customers
  • Hire workers. You simply can’t afford to run this business entirely on your own. Get workers to do specific tasks for you.
  • Create an official website.
  • Print business cards.

Other recommendations Here are some other factors that need to be considered when setting up your building materials business in Nigeria:

  • Whenever a product appears to be low on demand, it should be reduced in your stock, but not completely removed
  • Ensure that you work with high-quality suppliers as this will affect the reputation of your business
  • Practice effective customer care services
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HOW CAN I START A BUILDING MATERIALS BUSINESS IN NIGERIA? Top building materials to invest in Here are some top selling materials in the building material industry

Cement: Currently, 6 billion tonnes of cement are being produced on a daily basis. Cement has proven to be the fastest selling building material so far. You could become a major dealer who buys directly from the manufacturers, or set up as a retailer

Timber: This is another hot building material you want to try out

Electrical materials and accessories

Hope you enjoy this article? Share your thoughts in the comment session. Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success.

  1. We help institutions and organizations write concepts, implement Business plans, and train on business Plan writing in Nigeria.
  2. We can help you write a detailed, bankable and comprehensive business plan for your business idea.
  3. Call any of our business plan consultants on 08105636015, 08076359735 and 08113205312.
  4. Or or email us either at or,

Dayo Adetiloye(B.Agric, MBA)08105636015, 08076359735Serial Entrepreneur – International Business Planning Consultant – Speaker – Trainer – Author – Blogger – Network Marketing professional.- 2018 SME Business Trainer and Coaching Advisor at GIZ for SME Loop.

  • 2018 YALI RLC Online Cohort 9- 2017 Fellow, Inspire Africa Train-the-Trainer Entrepreneurship programme sponsored by US Consulate Lagos and the Dickey Center, U.S.A.
  • 2016 Fellow, Tony Elumelu Foundation Entrepreneurship Programme – 2015 Top 50 Innovative Entrepreneurs, BET5 by Diamond Bank and EDC, PAU.He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU).

Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence. – He is a Certified Trainer in Design Thinking by the U.S Consulate, Lagos and the inspire Africa Entrepreneurship Institute.

Is building materials a good investment?

7 Investment Opportunities in the Construction Materials Industry Investing is an excellent thing to do in the construction industry because it is a lucrative business. As long as you know the right niche and high-demand construction materials, you can excel in the business.

What is the most recycled building material?

Steel – Steel is the most common structural framing material for nonresidential buildings in the United States and offers an ideal example of a recycling flow that approaches circularity. After a building is demolished, “pretty much all steel will get recycled,” says Moe.

  • In fact, steel is the most recycled material in the world, with about 98 percent of structural steel avoiding landfills.
  • This is due in large part to the nature of steel production itself, which relies largely on melting down preexisting steel, and to the economic conditions of supply chains that incentivize its reuse.

Other metals (including aluminum) are also frequently reintroduced into the production cycle in what Moe calls “a pretty standard flow” in the current construction context. For example, steel made from scrap—sourced as postconsumer material or as a by-product of manufacturing—saves iron, coal, and limestone (not to mention carbon emissions) relative to steel production from virgin materials.

  1. The picture is less impressive for steel used as rebar and as reinforcing material in concrete construction: Only 71 percent of such steel is recycled, according to the Steel Recycling Institute.
  2. The lower percentage indicates the importance of neatly separating different materials during demolition to better guarantee their efficient reuse.

Although sorting out multi-material building elements is difficult, it can lead to safer repurposing. How To Start A Construction Supply Business Illustration by B.D. Graft