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
Multifamily Housing | Sep 15, 2022
Toronto’s B-Line Condominiums completed using prefabricated panels
B-Line Condos, Toronto, completed using Sto Panel Technology.
Mass Timber | Aug 30, 2022
Mass timber construction in 2022: From fringe to mainstream
Two Timberlab executives discuss the market for mass timber construction and their company's marketing and manufacturing strategies. Sam Dicke, Business Development Manager, and Erica Spiritos, Director of Preconstruction, Timberlab, speak with BD+C's John Caulfield.
Sponsored | BD+C University Course | Aug 24, 2022
Solutions for cladding performance and supply issues
This course covers design considerations and cladding assembly choices for creating high-performance building envelopes — a crucial element in healthy, energy-efficient buildings.
Sponsored | | Aug 4, 2022
Brighter vistas: Next-gen tools drive sustainability toward net zero line
New technologies, innovations, and tools are opening doors for building teams interested in better and more socially responsible design.
Building Materials | Aug 3, 2022
Shawmut CEO Les Hiscoe on coping with a shaky supply chain in construction
BD+C's John Caulfield interviews Les Hiscoe, CEO of Shawmut Design and Construction, about how his firm keeps projects on schedule and budget in the face of shortages, delays, and price volatility.
Building Materials | Jul 20, 2022
LP Building Solutions celebrates 50th anniversary at NYSE ceremony
LP Building Solutions celebrates 50th anniversary at NYSE ceremony.
Building Materials | Jun 20, 2022
Early-stage procurement: The next evolution of the construction supply chain
Austin Commercial’s Jason Earnhardt explains why supply chain issues for the construction industry are not going to go away and how developers and owners can get ahead of project roadblocks.
Sponsored | BD+C University Course | May 10, 2022
Design guide for parapets: Safety, continuity, and the building code
This course covers design considerations for parapets. The modern parapet must provide fire protection, serve as a fall-protective guard, transition and protect the roof/facade interface, conceal rooftop equipment, and contribute to the aesthetic character of the building.
Sponsored | BD+C University Course | May 10, 2022
Designing smarter places of learning
This course explains the how structural steel building systems are suited to construction of education facilities.
Sponsored | BD+C University Course | May 5, 2022
Designing with architectural insulated metal wall panels
Insulated metal wall panels (IMPs) offer a sleek, modern, and lightweight envelope system that is highly customizable. This continuing education course explores the characteristics of insulated metal wall panels, including how they can offer a six-in-one design solution. Discussions also include design options, installation processes, code compliance, sustainability, and available warranties.