Procurement strategy in volatile markets: Key lessons from “The Building Code”

Procurement strategy is no longer a background function – it’s a frontline business discipline.

That theme is at the center of a recent episode of “The Building Code” podcast, featuring industry leaders from across the residential construction and supplier ecosystem:

• Thom Black, VP of Purchasing, CBUSA
• Jon Showalter, COO, Homes by Dickerson (a CBUSA builder member)
• Brian Humphreys, Director – Sales, Builder Channel at Kohler Co. (a CBUSA network supplier)

In the conversation, the panel discusses how procurement strategy – rather than short-term price chasing – helps builders and suppliers navigate volatile construction markets, manage risk and protect long-term client trust.

With both Homes by Dickerson and Kohler operating within the CBUSA network, the discussion highlights how aligned builder-supplier relationships, supported by CBUSA’s collective purchasing structure, create greater transparency and stability across the supply chain.

By connecting builders directly with manufacturers and distributors through a shared framework, CBUSA helps reduce friction, improve communication and create more predictable outcomes – even during periods of market uncertainty. 

Below are the key procurement strategy takeaways from the episode.

Why procurement strategy is under pressure right now

Thom summed up the recent state of the market best: “It’s been a bit of a rollercoaster ride since the pandemic.”

Volatility now comes from multiple directions: shifting material availability, unpredictable lead times, policy-driven cost pressures and construction material tariffs heading into 2026.

Industry groups like the Associated General Contractors have documented how tariffs ripple through the construction supply chain – starting with manufacturers and distributors, then ultimately landing on builders’ balance sheets. When material inputs are taxed, those costs compound as products move downstream, increasing prices for everything from framing packages to mechanical systems. For contractors, this often means higher bids, tighter margins or difficult conversations with homeowners about rising project costs – long before ground is ever broken.

Volatility exposes weak procurement strategy fast. Builders without structure are forced into reactive decisions. Builders with procurement discipline create stability – even when conditions change.

Procurement strategy is a system, not reactive buying

Procurement maturity isn’t just a buzzword. It’s a practical operating difference between reactive and disciplined builders.

CBUSA leaders frame procurement strategy as a defined system that governs sourcing, purchasing, forecasting and supplier management. It’s not a collection of emails and spreadsheets – it’s a repeatable process.

“There’s a time to be a hammer and there’s a time not to,” Thom said. Strong procurement strategy means knowing when to push, when to collaborate and when to escalate – without damaging long-term relationships.

This aligns with CBUSA’s real-world procurement lesson: Most costly mistakes happen when builders operate without a system.

Clean data strengthens procurement strategy in volatile markets

“Nobody can predict exactly what the future is,” said Brian. “The faster you can get clean information, the quicker you can adjust to it.”

Distributors are sharing inventory and point-of-sale data to help manufacturers anticipate demand. And that visibility improves procurement strategy across the entire supply chain.

From the manufacturer’s perspective, that visibility is critical. Brian explained that when builders and distributors share cleaner, faster data, manufacturers like Kohler can respond earlier – adjusting production, inventory positioning and fulfillment before disruptions reach the job site.

“Nobody can predict exactly what the future will be,” Brian said. “But the faster you can get clean information, the quicker you can adjust to it – and that helps everyone the chain making better decisions.

When forecasting assumptions are constantly shifting, procurement becomes less about making the perfect long-range call and more about responding quickly to what is happening. Builder and suppliers can’t rely on static forecasts that may be outdated in weeks – or even days.

The advantage comes from shortening the feedback loop: accessing more current data, spotting changes earlier and adjusting purchasing decisions in real time rather than guessing correctly months in advance.

Long build cycles raise the stakes of procurement decisions

Homes by Dickerson is a Raleigh-area custom homebuilder with more than 50 years of experience designing and building bespoke homes rooted in craftsmanship and client-focused design.

“In 2025, we averaged 248 days to complete,” said Jon.

Such extended cycles magnify the consequences of procurement choices: decisions made early in the process – whether about material sourcing, pricing assumptions or vendor commitments – can reverberate for much of the build.

That dynamic illustrates how even top builders with strong reputations and deep experience are wrestling with longer lead times and the increased operational risk they create.

That reality fundamentally changes procurement strategy. Pricing decisions are often locked in early – long before materials are delivered – while volatility has months to compound. The longer the build cycle, the more exposed builders are to shifts in cost, availability and market conditions.

Jon explained that tools like escalator clauses may protect margins, but they come with real tradeoffs. They introduce friction, complicate buyer conversations and can undermine trust – especially in custom builds where clients expect certainty.

“Every builder has a cost to serve,” Jon noted. Procurement strategy isn’t just about managing supplier risk – it’s about deciding how much uncertainty to absorb internally versus pushing onto the client experience.

A disciplined procurement strategy helps builders navigate that tension: protecting margins without eroding confidence and managing volatility without turning it into a relationship problem.

Collaboration is the backbone of effective procurement strategy

“A lot of this volatility is tied to the tariff situation,” Thom said, “but collaboration works as an antidote to uncertainty.”

Jon described the “three-legged stool” of builder, CBUSA and manufacturer – a structure built on shared accountability and direct communication. These three parties, when working together, enable faster diagnosis, clearer escalation paths and fewer breakdowns when something goes wrong. The stool works because no single leg is carrying all the risk and no one is isolated when volatility hits.

Brian said Kohler is a great example of how manufacturers participating in the CBUSA network can collaborate directly with builders and distributors – sharing information earlier and resolving issues faster when volatility hits.

Sometimes collaboration requires vulnerability. Sometimes it requires face-to-face conversations. Always, it requires discipline.

What trust looks like inside a strong procurement strategy

Trust in procurement is built through consistent action, not intent. Brian emphasized the importance of strong, durable relationships. 

Jon pointed to face-to-face conversations – especially when conditions change – as critical to maintain alignment. And Thom defined the operational standard succinctly: “Trust is doing what you say you’re going to do, even if the math changes.”

And Brian emphasized that trust runs both directions. From a manufacturer standpoint, trust is built when builders and partners share accurate information and stay consistent – even when conditions change.

“Those relationships don’t happen overnight,” Brian said. “They’re built through transparency and follow-through over time.”

Inside a strong procurement strategy, trust is built through day-to-day discipline. In practice, that means:

• Analytics: shared, reliable data
• Consistency: repeatable processes under pressure
• Follow-through: honoring commitments when conditions shift

Why CBUSA strengthens builder procurement strategy

Procurement strategy works best when builders aren’t navigating volatility alone.

CBUSA members benefit from:

• Proven procurement systems built for volatile markets
• Trusted manufacturer relationships
• Data visibility that improves forecasting and response
• Scale and advocacy individual builders can’t replicate

Network suppliers like Kohler play a critical role in this model – working alongside CBUSA and builder members like Homes by Dickerson to improve data visibility, coordination and long-term supply reliability.

And if you’re ready to turn procurement strategy into a competitive advantage, explore how a CBUSA membership helps builders stay profitable – no matter how the market shifts.

FAQs on procurement strategy