The Hidden Costs Killing Construction Margins (And How to Fight Back)

ByWes Towers

For trades and construction businesses, managing costs has become increasingly difficult. Materials, labour, fuel and transport expenses continue to put pressure on margins, and sometimes it’s the less obvious costs that do the most damage.

Freight is a perfect example. You might know what you’re paying to transport materials, but do you know whether you’re getting the best value? And how much time is your team spending organising deliveries, chasing invoices and resolving transport issues?

I recently explored these challenges on my podcast, Built. Trusted. Chosen., with Errin-Leigh Spratt, Business Development Manager at TUCO Freight Management.

With around 15 years of transport industry experience, Errin-Leigh offered a practical perspective on rising costs, smarter freight management, customer trust and the resilience required to succeed in a traditionally male-dominated industry.

Here are five takeaways for construction and trades business owners.

Freight costs are squeezing margins beyond fuel prices

Fuel is an obvious expense for transport operators, but it’s far from the only one.

Errin-Leigh explained that tolls and the broader cost of operating trucks are putting enormous pressure on transport businesses. Individual charges might not seem particularly significant, but when accumulated across a journey, the total can be surprising.

She also shared a particularly telling example. The Lights on the Hill convoy, an event she had supported for years, was cancelled because of the costs involved for participating transport companies.

For construction businesses, this reinforces an important point. The cost of delivering materials isn’t simply about distance.

Fuel, tolls, handling and other transport expenses can all influence the final price.

It’s worth reviewing your freight expenditure regularly, particularly when projects involve deliveries across multiple locations.

Transparency builds trust when prices keep rising

One of the strongest themes in our conversation was the importance of trust.

Errin-Leigh explained that she wouldn’t feel comfortable representing a transport business if customers could be blindsided by unexplained fees.

Having worked in organisations that prioritise transparent pricing, she sees clear communication as essential to maintaining strong relationships.

I think this is particularly relevant to construction businesses.

When you’re quoting a project and costs suddenly increase, customers don’t necessarily expect you to absorb every additional expense. But they do want to understand what’s happening.

The same principle applies when dealing with your own suppliers.

Clear explanations of fuel charges, handling fees and other expenses help everyone make better decisions.

Trust becomes even more valuable when margins are tight and businesses are competing harder for work.

The cheapest freight quote isn’t always the best deal

Errin-Leigh explained how different freight carriers can calculate charges differently, including how they assess shipment dimensions and handling requirements.

A carrier offering an attractive rate for one type of shipment might not be the most economical option for another.

That’s where comparing options becomes particularly valuable.

Through TUCO, Errin-Leigh reviews a customer’s existing freight arrangements and identifies carriers suited to their specific requirements.

Sometimes the existing carriers remain the best option. Other times, alternatives offer better value.

She also explained that this isn’t a one-off exercise. Carrier pricing and charges are continually reviewed and renegotiated.

For a building supplies business regularly sending cartons, pallets or other materials, this raises a useful question.

Are your freight arrangements still competitive, or are you continuing with the same provider simply because that’s what you’ve always done?

Smarter freight management gives business owners their time back

Time is another cost that doesn’t always appear clearly on a financial statement.

Errin-Leigh described businesses spending substantial portions of their day chasing deliveries, checking invoices and dealing with multiple freight companies.

TUCO’s Freightmate platform is designed to simplify this process.

Customers enter shipment details, such as weight, dimensions and destination, then select from a tailored list of suitable carriers.

The system displays pricing and transit information, helping staff organise freight without visiting multiple platforms.

Instead of managing separate invoices from several carriers, customers receive consolidated billing.

TUCO also provides dedicated account managers to monitor consignments and help resolve lost or damaged freight.

For trades and construction businesses, the potential benefit extends beyond cheaper freight.

It’s about reducing unnecessary administration so your team can concentrate on customers, projects and revenue-generating work.

Resilience opens doors in male-dominated industries

Beyond freight management, Errin-Leigh’s career story was one of the most memorable parts of our conversation.

She began her career in childcare before moving into transport sales, eventually obtaining heavy vehicle licences and becoming involved in truck convoys and industry events.

Along the way, she encountered considerable resistance.

She described how a LinkedIn video celebrating her progression from an HR to an MC truck licence attracted a wave of sexist comments.

Initially, she deleted the negative responses. Eventually, she decided to leave them visible.

Despite those experiences, Errin-Leigh believes attitudes across the transport industry have improved considerably. She credits both changing attitudes and the increasing number of women challenging traditional expectations.

For business owners and leaders, there’s a broader lesson here.

Experience, persistence and a willingness to keep learning can open doors, even when the path isn’t straightforward.

Her move into interstate freight management is another example of continuing to develop new skills rather than remaining comfortable with what she already knows.

If you’re running a construction, trades or industrial business, take another look at your freight arrangements.

Consider the full cost of transport, the time your team spends managing it and whether your suppliers are delivering the transparency and support you need.

Sometimes improving profitability isn’t about winning more work. It’s about finding a smarter way to manage the work you’re already doing.

About Errin-Leigh Spratt

Errin-Leigh Spratt is a Brisbane-based Business Development Manager at TUCO Freight Management, bringing around 15 years of experience in Australia’s transport industry. After 11 years with Team Transport, where she expanded her experience into heavy vehicle driving, sales and community events, she now helps businesses simplify freight management and improve logistics efficiency.

Want to be a guest on Built. Trusted. Chosen.? Book here: https://uplift360.com.au/built-trusted-chosen-podcast-guest-booking/