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Preferred Construction Material Supplier and Competitor Survey February 2025

The Preferred Supplier and Competitor Survey (PSS) provides an in-depth look at the construction materials market, highlighting supplier participation, contractor challenges, and industry trends. The report measures supplier engagement using the Market Exposure Rate (MER), which reflects supplier involvement based on project values rather than sales volumes.

Executive Summary

While the value of civil projects awarded surged by more than 200 percent, delays in public sector payments and budget approvals are creating cash flow challenges for contractors. Many have faced payment backlogs since October 2024, leading to project suspensions and financial instability. Despite these setbacks, R24.6 billion worth of projects were awarded in January 2025, with major road and infrastructure projects driving growth. Cement, ready-mixed concrete, and aggregates remain the most in-demand materials, while price-conscious buyers favour Falcon Cement, the most affordable option at R96.46 per 50kg. With construction material inflation slowing to 1.5 percent, it may be an opportune time for suppliers and contractors to capitalize on market opportunities. Building stronger supply chain relationships, offering direct material deliveries, and improving service quality are a few ways to enhance competitiveness. Materials that supported the lower increase, include steel, granite and sandstone, paint and to a lesser degree cement that fell by  0.2 percent y-y in January 2025.

Key challenges noted during this month's survey include projects placed on hold due to non-payment and contractors threatening to leave the site, contractor's financial constraints, issues related to social  housing upgrades and a dispute on a school renovation project in Kwazulu Natal

Full details available to PSS subscribers

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