High Hopes for Building Materials in 2015

4Q14 MDM-Baird Distribution Survey reveals lofty expectations for sector this year.
Eric-Smith-84x84

The building materials sector made plenty of news in the fourth quarter with its M&A activity, but another potentially prominent storyline has emerged for 2015 – skyrocketing revenue growth.

Coming off a lackluster fourth quarter in which building materials saw -0.1 percent revenue decline due to continued softness in housing, the sector is poised for much brighter days ahead, according to the most recent MDM-Baird Distribution Survey.

More than 500 distributors and manufacturers forecasted the building materials sector to see 3.4 percent revenue growth in the first quarter and 7.1 percent revenue growth in 2015, the highest forecast in the survey and the largest percentage gain, by far, from fourth quarter 2014.

The forecast mirrors some other recent projections for the building materials sector in 2015, such as 80 percent of contractors saying they plan to expand their work force this year as optimism in U.S. construction grows.

With the exception of roofing, where demand is soft due to factors such as longer-lasting shingles and widespread lack of home equity needed to take on large home improvements, all buildings products & facilities maintenance subsectors are poised for a positive 2015, according to the MDM-Baird Survey. Notable subsectors include HVAC's projected 5.4 percent revenue growth and pool & spa's projected 6.1 percent growth in 2015.

One survey respondent said about the pool & spa sector: "Design and construction revenue took a positive turn in the fall." Another said: "2014 finished up about 5 percent over 2013, which is the fourth year in a row of growth since the plunge in the market since 2010."

Read more about the results of the fourth-quarter 2014 survey, including results by sub-sector, in the January 25, 2015, issue of MDM Premium.

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.