flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

COVID-19: Principia report tracks impact on lumber and building materials

Coronavirus

COVID-19: Principia report tracks impact on lumber and building materials

Most dealers and distributors of lumber and residential building products are still operating, although with some restrictions on supplies and services. 


By ROBERT CASSIDY, EXECUTIVE EDITOR | April 5, 2020
LBM building materials revenue 2019

Lumber and building materials revenue totaled $72 billion in 2019, according to Principia.

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 safelyreduced 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:

COVID-19 intensity by state vs LBM distribution - map

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

Coronavirus | Aug 27, 2020

8 must reads for the AEC industry today: August 27, 2020

Extended-stay hotels are the lodging sector's safest bet, and industrial real estate faces short-term decline.

Coronavirus | Aug 25, 2020

Co-living firm Common issues RFP for the future home office and work hub

Common, the U.S.’s largest co-living company, recently released an RFP for a “Remote Work Hub” to blend work and life from the ground up.

Coronavirus | Aug 25, 2020

Video: 5 building sectors to watch amid COVID-19

RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.

Coronavirus | Aug 25, 2020

6 must reads for the AEC industry today: August 26, 2020

Big-box retailers’ profits surge, and rent payment tracker finds 90% of apartment households paying rent.

Coronavirus | Aug 25, 2020

7 must reads for the AEC industry today: August 25, 2020

Medical office buildings get a boost by demand and capital, and why the COVID-19 pandemic is increasing the need for telemedicine. 

University Buildings | Aug 20, 2020

Student housing in the COVID-19 era

Student housing remains a vital part of the student and campus experience.

Coronavirus | Aug 17, 2020

Covid-19 and campus life: Where do we go from here?

Campus communities include international, intergenerational, and varied health-risk populations.

Coronavirus | Aug 10, 2020

Reimagining multifamily spaces in the COVID era

Multifamily developments pose unique challenges and opportunities.

Coronavirus | Aug 3, 2020

Exploring the airborne transmission of the coronavirus and strategies for mitigating risk

Health authorities say it’s important to understand the dangers of microdroplets. How might indoor ventilation need to change?

boombox1
boombox2
native1

More In Category


MFPRO+ Special Reports

Top 10 trends in affordable housing

Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021