Principia, a provider of business insights to the building materials and business construction industry, tracks $72 billion of residential revenue sold in selected building product categories (roofing, siding, exterior trim, windows, doors, decking, railing, and insulation) through the lumber and building materials (LBM) channel in 2019. Remodeling and repair represented $46 billion (over 64%) of channel revenues, with new construction accounting for $26 billion.
Principia's has issued a bulletin on COVID-19 impact on LBM distribution.
MOST LBM DISTRIBUTORS ARE STILL OPEN FOR BUSINESS
Distributors are open for business, with most states also deeming them essential.
- Most distributors are not experiencing material shortages, except in areas like personal protection equipment and some stuff from China.
- Deliveries from suppliers are proceeding apace. Some distributors have heard from dealers that they would like to push April deliveries to May. If this activity is widespread, distributor inventory levels will start rising, leading to a pullback on orders from suppliers.Focusing on inventories and receivables. Distributors are staying in touch with their dealer customers and watching their accounts receivables and destocking efforts at the same time they are watching their own accounts receivables and inventory levels.
- Distributors are staying in touch with their dealer customers and watching their accounts receivables and destocking efforts.
- Areas with higher concentrations of COVID-19 cases are reporting more disruptions. Distributors overexposed to a state where construction has not been exempted are faring less well than their counterparts.
MOST STATES DEEM LBM DEALERS 'ESSENTIAL BUSINESSES'
Most states have deemed building materials dealerships essential, so most dealers are open for business.
Most have made changes to operate safely—reduced store hours, limitation on the number of people entering the building at one time, more reliance on curbside pickup and online orders with store pickup.
Small dealers in states where construction has not been exempted from stay-at-home restrictions are faring worse than those in other states. Dealers are watching inventory levels and are slowing restocking of slow-moving products.
This map correlates COVID-19 intensity with LBM distribution tracked by Principia:
State colors indicate relative COVID-19 case load as of 04-02-01: red, above average; yellow, average; green, below average. Dots represent Principia-tracked locations. Map © 2020 Mapbox © OpenStreetMap Source: Principia
Related Stories
Codes and Standards | Jul 19, 2023
Office leasing in major markets by financial services firms rebounds to pre-pandemic norms
Though the pandemic led to reductions in office leasing by financial services firms in gateway markets, a recent report by JLL found a notable leasing resurgence by those firms.
Multifamily Housing | Jun 29, 2023
5 ways to rethink the future of multifamily development and design
The Gensler Research Institute’s investigation into the residential experience indicates a need for fresh perspectives on residential design and development, challenging norms, and raising the bar.
Office Buildings | Jun 28, 2023
When office-to-residential conversion works
The cost and design challenges involved with office-to-residential conversions can be daunting; designers need to devise creative uses to fully utilize the space.
Arenas | May 18, 2023
How can we reimagine live sports experiences?
A Gensler survey finds what sports fans' experiences have been like returning to arenas, and their expectations going forward.
Headquarters | May 15, 2023
The new definition of Class A property
Dan Cheetham, Managing Director and Founder of FYOOG, believes organizations returning to a "hub and spoke" model could have a profound effect on properties once considered Class B.
Office Buildings | May 5, 2023
9 workplace design trends for 2023
HOK Director of WorkPlace Kay Sargent and Director of Interiors Tom Polucci discuss the trends shaping office design in 2023.
Multifamily Housing | Apr 4, 2023
Acing your multifamily housing amenities for the modern renter
Eighty-seven percent of residents consider amenities when signing or renewing a lease. Here are three essential amenity areas to focus on, according to market research and trends.
Urban Planning | Mar 16, 2023
Three interconnected solutions for 'saving' urban centers
Gensler Co-CEO Andy Cohen explores how the global pandemic affected city life, and gives three solutions for revitalizing these urban centers.
Laboratories | Mar 9, 2023
5 laboratory design choices that accelerate scientific discovery
Stephen Blair, director of CannonDesign's Science & Technology Practice, identifies five important design strategies to make the most out of our research laboratories.
Augmented Reality | Jan 27, 2023
Enhancing our M.O.O.D. through augmented reality therapy rooms
Perkins Eastman’s M.O.O.D. Space aims to make mental healthcare more accessible—and mental health more achievable.
