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
Coronavirus | Mar 19, 2020
Force Majeure and COVID-19 in construction contracts - What you need to know
With the onset of the COVID-19 pandemic, we are all taking a closer look at many portions of our contracts.
Coronavirus | Mar 19, 2020
Technology crucial during COVID-19 social distancing
Technology can help bridge the gap during the Coronavirus pandemic as higher education institutes and corporations are moving to a remote work model.
Coronavirus | Mar 18, 2020
Coronavirus latest: Short-term pain but strong rebound likely, says Oxford Economics
Once the disruption and uncertainty fade, the rebound in global economic activity will be strong. It’s important for firms to position themselves for such a recovery.
Coronavirus | Mar 18, 2020
We are in the midst of a paradigm shift for higher education
The question for higher education is, what will the university of the future look like?
Coronavirus | Mar 17, 2020
AIA: Design services saw increase in February, but economic footings are rapidly shifting
"The rapid pull-back in activity throughout the economy will obviously be felt in the design and construction sector, and architecture firms will be one of the first to see how these events play out,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD.
Coronavirus | Mar 17, 2020
AGC to government officials: Shutting down construction projects is an unnecessary step
Construction firms are already taking steps to protect employees, most of whom already wear protective equipment, while halting work will undermine efforts to add hospital capacity.
Coronavirus | Mar 16, 2020
Boston mayor orders shut down of construction sites due to coronavirus
Boston Mayor Martin Walsh has ordered that all construction projects in the city be suspended in response to the spread of the coronavirus.
Coronavirus | Mar 16, 2020
Effective remote workforce: Key steps and strategies for success
As the potential scope of the COVID-19 outbreak has become more clear in the United States and Canada, public and private organizations from all industries, sectors and geographies are encouraging their teams to work remotely to reduce the spread of the virus.
Coronavirus | Mar 16, 2020
Coronavirus and the water cycle—here is what treatment professionals need to know
As the global health community tracks the spread of this virus, it’s important for water and wastewater professionals to keep updated on potential impacts.
Coronavirus | Mar 15, 2020
Designing office building lobbies to respond to the coronavirus
Touch-free design solutions and air purifiers can enhance workplace wellness.
