The Preferred Supplier Survey, pioneered by Industry Insight, evaluates the Market Exposure Rate (MER) of key construction material suppliers within the construction industry. MER is used to measure supplier participation in projects based on their exposure to project values rather than sales volumes.
The May 2026 Preferred Supplier Survey covered 200 construction projects valued at R21.8 billion, providing insight into supplier selection trends, contractor sentiment and construction market activity across South Africa.
The survey indicates that infrastructure-related projects, particularly in the water, roads and public infrastructure sectors, continue to support construction activity. However, contractors report a more challenging operating environment, with rising fuel costs, transport surcharges, weather-related disruptions and funding constraints placing increasing pressure on project delivery and margins.
Supplier selection remains heavily influenced by the quality of the professional team, although location and price have become increasingly important as contractors focus on cost control, lead times and supply chain reliability. Product quality, service levels and account facilities continue to play an important supporting role in procurement decisions.
Overall, the survey points to a construction market that remains active but increasingly complex, with infrastructure investment providing opportunities while cost pressures and project delivery risks continue to shape supplier and contractor decision-making.
Download the PSS May 2026 overview here (available to PSS Subscribers)
