Overview

Knock on wood: A rise in housing starts will revive demand, but competition will threaten growth

IBISWorld’s Industry Market Report on Lumber & Building Material Stores is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Despite persistent competition, the housing market’s upturn will support industry growth
  • The industry faced stiff competition from home improvement stores
  • Rising business spending will also drive growth in commercial construction markets
  • Industry Analysis & Industry Trends

    Over the past five years, the Lumber and Building Material Stores industry has struggled to rebuild itself, even as the overall economy strengthens. Industry goods are purchased by professional contractors and consumers engaged in remodeling and construction projects. Rising consumer confidence and household income have helped ignite remodeling activity forestalled during the recession, providing additional demand for lumber and other building materials used in home improvement projects. Even so, rising competition from large home improvement stores has stifled revenue growth for lumber and building material stores.

    Industry Report - Starting a New Business Chapter

    The Lumber and Building Material Stores industry exhibits low barriers to entry for prospective operators, which do not need to meet licensing requirements or adhere to significant government regulation. However, investment costs and high competition can be challenging to operators that want to enter the industry.

    The initial cost of establishing or purchasing a retail outlet and costs associated with building inventory can be high. Prospective operators may not be readily able to secure the necessary capital to purchase or lease space to establish a new store. This was more common during the recession when the lending market for commercial loans was particularly tight. In

    Additional Insights for the Lumber & Building Material Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lumber & Building Material Stores Industry are

  • Attractive product presentation
  • Ability to control stock on hand
  • Experienced workforce
  • IBISWorld analysts also discuss how external factors such as Housing starts and Consumer Confidence Index in the Lumber & Building Material Stores industry impact industry performance..

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    Industry Products

    What is the Lumber & Building Material Stores Industry?

    This industry consists of stores and dealers (e.g. lumberyards) that retail 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 centers, paint and wallpaper specialty stores or hardware stores.

    Industry Products
    Lumber and other structural building materials
    Hardware, tools, plumbing and electrical supplies
    Doors and windows
    Flooring and roofing materials
    Industry Activities
    Retailing building materials
    Retailing cabinets
    Retailing ceiling fans
    Retailing doors and windows
    Retailing electrical supplies
    Retailing fencing
    Retailing floor coverings (wood or ceramic only)
    Retailing lighting fixtures
    Retailing masonry (e.g. block, brick and stone)
    Retailing plumbing supplies

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Housing starts
  • Consumer Confidence Index
  • Private spending on home improvements
  • Value of residential construction
  • Price of sawmill lumber

  • Current Performance
  • Mounting competition
  • Remodeling the industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Rebuilding demand
  • Going green
  • Table: Lumber & Building Material Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Lumber & Building Material Stores Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Electricians
  • Masonry
  • Carpenters
  • Flooring Installers
  • Roofing Contractors
  • Fence & Swimming Pool Construction
  • Consumers

  • Key Selling Industries
  • Electrical Equipment Wholesaling
  • Lumber Wholesaling
  • Manufactured Home Wholesaling
  • Plumbing & Heating Supplies Wholesaling
  • Roofing, Siding & Insulation Wholesaling
  • Stone, Concrete & Clay Wholesaling

  • Products & Services
  • Lumber and other structural building materials
  • Hardware, tools, plumbing and electrical supplies
  • Doors and windows
  • Flooring and roofing materials
  • Other
  • Chart: Lumber & Building Material Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Professional contractors
  • Other
  • Do-it-yourself customers
  • Do-it-for-me customers
  • Chart: Major Market Segmentation for the Lumber & Building Material Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Lumber & Building Material Stores

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lumber & Building Material Stores Industry

  • Industry Globalization
    Major Companies
    Builders FirstSource
  • Table: Builders FirstSource - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Lumber & Building Material Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Lumber & Building Material Stores Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Housing Starts (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Do-It-For-Me (Difm)
  • A category of customers who purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers that includes homeowners who purchase products and complete their own projects.
  • Professional Contractors
  • Professional remodelers, general contractors, repairmen and tradesmen.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Lumber & Building Material Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Lumber & Building Material Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Lumber & Building Material Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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