By Nick Gilbert
Principia has released a new report on building products distribution. According to this report, in 2014, the building products distribution will grow at 6% annually to reach $122 billion in revenue with a gross margin of $26 billion. In 2011, it was $100 billion in channel revenue with a gross margin of $21 billion.
In terms of gross margin, the leading channels are lumberyards and specialty 1-steppers. Roofing, sheathing and dimensional lumber products are the major contributors to the margin.
Principia has released a comprehensive groundbreaking program - Building Products Distribution 2012. It provides a roadmap of the gross margins in terms of region, channel, product, and sub-products, and a study of the channel dynamics that affect the building materials and lumber industry.
The report presents direct interviews with building product manufacturers, contractors, distributors, wholesalers, dealers and builders.
The economic downturn has affected the industry with lower margins, inventory turns and revenues. It has led to closure or acquisition of small players while larger, stronger companies will see profits when the construction market rebounds. Investors will try to build strong positions and undertake acquisitions, geographic expansions and product line extensions.
The report provides the best growth opportunities, competitive advantage, and strategies to create value in14 product categories and 37 sub-product categories.
Building Products Distribution 2012 provides an assessment of the present stage of the industry, feedback from customers, channel opportunities and insights into segments. The program also features an interactive Market Model and Forecasting Tool. This will allow modeling of market performance scenarios based on user assumptions.