Lumber & Building Material Stores in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 44419CARevenue
$7.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
35,288
Businesses
5,407
Wages
$X.Xbn
Lumber & Building Material Stores in Canada industry analysis
Canada's Lumber and Building Material Stores industry has exhibited volatility because of fluctuations in construction markets. The pandemic greatly contributed to industry volatility, with housing starts ballooning in 2020 amid low interest rates. At the same time, the pandemic and associated business closures and work stoppages depleted private nonresidential construction markets. This trend has partially reversed as recent interest rate hikes have dissuaded investment in residential construction while commercial construction markets have grown. The ebb and flow of these markets have largely offset each other. Overall, revenue for lumber and building material stores is expected to climb at a CAGR of 2.3% to $7.7 billion through the end of 2024, including growth of 1.3% in 2024. Profit has been pressured by a complicated supply and demand environment and has not returned to pre-pandemic levels.
Trends and Insights
- Low interest rates enabled housing starts to proliferate and residential construction activity to blossom. Since 2022, rising rates have damaged revenue as homeowners are dissuaded from investing in construction and opting for renovations instead.
- The expansion of do-it-yourself (DIY) consumers has significantly altered the retail market. Even so, professional contractors remain the dominant market for stores.
- The location of establishments mirrors trends in the population and business activity. The greater the number of residents and the larger the commercial presence, the stronger sales will be for lumber and building material stores.
- Stores endure a high degree of competition from other retailers and big-box stores. Lumber and building material stores mostly compete based on store location, price, product availability, product quality and customer service.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.3 % over the past five years, to reach an estimated $7.7bn in 2024.
Trends and Insights
Major market dynamics strike a balance
- Revenue has benefited and suffered from the dynamics within downstream construction markets. In 2019, the industry was hampered by weak residential and nonresidential construction markets caused by high interest rates and consumer debt levels.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Dynamics in construction-related industries exert heavy influence over industry performance
- While Canada's overheated housing market is unlikely to result in a dramatic crash, new home construction will expand in the coming years. The number of housing starts will expand alongside a growing value of nonresidential construction.
Biggest companies in the Lumber & Building Material Stores in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Home Hardware Stores Limited | 1,849.8 | 79.5 | 4.3 | |
Castle Building Centres Group Ltd. | 209.0 | N/A | N/A | |
Tamarack Lumber Inc. | 20.2 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Lumber and other wooden building materials, Other structural materials and supplies and Hardware, tools, plumbing and electrical supplies. Lumber and other wooden building materials is the largest segment of the Lumber & Building Material Stores in Canada.
Trends and Insights
Other structural building materials account for the largest share of sales
- Other structural building materials account for the largest share of revenue. This segment includes nonwood structural panels, building components, moulding, windows, glass, masonry supplies, insulation, roofing, siding and heating units.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Home Improvement Stores in Canada
- Hardware Stores in Canada
Complementors
- Lumber Wholesaling in Canada
- Home Furnishings Stores in Canada
International industries
- Lumber & Building Material Stores in the US
- Home Improvement Stores in the US
- Tile & Marble Stores in the US
- Hardware and Building Supplies Retailing in Australia
- Hardware and Building Supplies Retailing in New Zealand
Table of Contents
About this industry
Industry definition
This industry retails building materials, such as lumber, hardwood, stones and brick. This industry also supplies cabinets, floor coverings, roofing materials, electrical and plumbing goods, doors and windows to the construction market. The industry does not include home improvement centres, paint and wallpaper specialty stores or hardware stores.
What's included in this industry?
Retailing building materialsRetailing cabinetsRetailing ceiling fansRetailing doors and windowsRetailing electrical suppliesRetailing fencingRetailing floor coverings (wood or ceramic only)Retailing lighting fixturesRetailing masonry (e.g. block, brick and stone)Retailing plumbing suppliesCompanies
Home Hardware Stores LimitedCastle Building Centres Group Ltd.Tamarack Lumber Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
DO-IT-FOR-ME (DIFM)DO-IT-YOURSELF (DIY)PROFESSIONAL CONTRACTORSPOINT-OF-SALE (POS) SYSTEMIndustry Code
NAICS 444190 - Lumber & Building Material Stores in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Low interest rates enabled housing starts to proliferate and residential construction activity to blossom. Since 2022, rising rates have damaged revenue as homeowners are dis...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The expansion of do-it-yourself (DIY) consumers has significantly altered the retail market. Even so, professional contractors remain the dominant market for stores.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The location of establishments mirrors trends in the population and business activity. The greater the number of residents and the larger the commercial presence, the stronge...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Stores endure a high degree of competition from other retailers and big-box stores. Lumber and building material stores mostly compete based on store location, price, product...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Home Hardware has an agreement with FedEx Corporation allowing stores to host a full-service FedEx Authorized ShipCentre. This alliance with FedEx, a leader in the transporta...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Home Hardware Stores Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Castle Building Centres Group Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Tamarack Lumber Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Home Hardware Stores Limited, and factors influencing its performance in the industry
- Description and key data for Castle Building Centres Group Ltd., and factors influencing its performance in the industry
- Description and key data for Tamarack Lumber Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Stores rely on residential and private nonresidential construction markets. Both markets displayed volatile behavior, with residential markets aided by low interest rates dur...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Hikes in wood and sawmill lumber prices have caused purchase costs to climb. This has cut into profit for many stores.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Lumber & Building Material Stores industry in Canada in 2024?
The market size of the Lumber & Building Material Stores industry in Canada is $7.7bn in 2024.
How many businesses are there in the Lumber & Building Material Stores in Canada industry in 2024?
There are 5,407 businesses in the Lumber & Building Material Stores industry in Canada, which has grown at a CAGR of 7.2 % between 2019 and 2024.
Has the Lumber & Building Material Stores industry in Canada grown or declined over the past 5 years?
The market size of the Lumber & Building Material Stores industry in Canada has been growing at a CAGR of 2.3 % between 2019 and 2024.
What is the forecast growth of the Lumber & Building Material Stores industry in Canada over the next 5 years?
Over the next five years, the Lumber & Building Material Stores industry in Canada is expected to grow.
What are the biggest companies in the Lumber & Building Material Stores market in Canada?
The biggest companies operating in the Lumber & Building Material Stores market in Canada are Home Hardware Stores Limited, Castle Building Centres Group Ltd. and Tamarack Lumber Inc.
What does the Lumber & Building Material Stores in Canada include?
Retailing building materials and Retailing cabinets are part of the Lumber & Building Material Stores industry.
Which companies have the highest market share in the Lumber & Building Material Stores in Canada?
The company holding the most market share in Canada is Home Hardware Stores Limited.
How competitive is the Lumber & Building Material Stores industry in Canada?
The level of competition is high and steady in the Lumber & Building Material Stores industry in Canada.
