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Building Material SupplyProduct Type: Market Research ReportPublished by: First Research, Inc. Published: August 2009 Product Code: R3470-2990 Description The building material supply industry in the US includes about 50,000 companies with combined annual sales of $250 billion. Major companies include Home Depot and Lowe's. Some independently owned stores belong to wholesale cooperatives, such as Ace Hardware and True Value Company, that buy materials in bulk and resell them to members. The industry is concentrated: the top 50 companies account for more than 50 percent of the market.COMPETITIVE LANDSCAPE Demand is driven mainly by residential real estate construction and renovation. The profitability of individual companies depends on merchandising and customer service. Large companies enjoy economies of scale in purchasing and have the ability to offer more products. Small companies can compete effectively by catering to contractors, by offering specialty products and services, and by serving areas unattractive to larger companies because of limited customer concentration. PRODUCTS, OPERATIONS & TECHNOLOGY Major products are lumber and other structural building materials and supplies (45 percent of sales) and hardware, tools, and plumbing and electrical supplies (25 percent of sales). Other products include paint; lawn, garden, and farm equipment and supplies; and floor coverings. In addition to selling products, many companies sell installation services (so-called "installed sales") using their own employees or outside contractors. A typical building supply store has about 20,000 square feet of floor space; big-box home improvement retailers like Home Depot or Lowe's have more than 100,000 square feet. The items sold in largest ... Table of Contents
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