Housing Market Hits Building Materials Distributors - Modern Distribution Management

Housing Market Hits Building Materials Distributors

>The largest public building materials distributors have already been hit by a slowdown in new residential housing. September housing starts were 17.9% below September 2005 levels. Permits were 6.3% below August, and 27.7% below the September 2005 rate.


>Some comments from distributors:



  • >’We expect that difficult market conditions affecting our business will continue to have a negative effect on our operating results and year-over-year comparisons through at least mid-2007.”
  • >’Our third quarter results reflect the current challenges facing the homebuilding industry as many homebuilders work through excess inventory. … We clearly experienced the effects of a significant slowdown in the housing market and falling commodity wood prices. However, continued strength in certain key markets, including the Intermountain region and Texas and an improvement in our sales mix helped us maintain gross margins.”
  • >”Our overall financial performance for the third quarter was significantly impacted by the sharp slowdown in new home construction and continued deterioration of wood-based structural product prices.”

>See details in each of these articles:
>BlueLinx Revenues Drop 17% in 3Q
Huttig Records 3% Sales Decline in 3Q 
Builders FirstSource Reports 11.3% Sales Drop in 3Q 
Building Materials Holding Corp. Hit by Housing Slowdown 

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