2018 PROSALES 100 Reveals Record Strength--and Future Growth Potential--of the Nation’s Biggest Lumber and Building Material Dealers
WASHINGTON (PRWEB) May 22, 2018 -- Hanley Wood, the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries, has released the 2018 PROSALES 100, its 26th annual ranking of the nation’s largest pro-oriented construction supply firms.
This year’s report finds that members of the 2018 PROSALES 100 collectively sold $55.85 billion worth of construction materials in 2017. That is 15.1% better than they did the year before and a record-high sales total over the list’s 26-year history, even after adjusting for inflation.
The PROSALES 100, produced by Hanley Wood’s PROSALES magazine since 1992, is America’s premier report covering those construction supply companies that garner at least 35% of their revenues from professional builders and remodelers; for the vast majority, it is over 90%. Large operations that cater primarily to retail customers, such as The Home Depot, Lowe’s and Menards, are excluded, thus making it possible to examine more accurately the pro-oriented side of the lumber and building material (LBM) industry.
To access the list online, click here; for a PDF version, click here.
“We get the sense that America’s biggest pro-oriented dealers have set themselves up to climb to even higher levels in the years to come,” said Craig Webb, PROSALES editor-in-chief and leader of the PROSALES 100 project. “Payroll count increased only 7.3%--less than half the sales growth rate--while the number of facilities increased just 2.9%. Even after you adjust for inflation, this group is generating 21% more sales per employee than the PROSALES 100 did in 2006, near the peak of the last housing boom.”
Ten companies grew sales by at least 30% while only five—mainly based in rural areas—saw declines. Virtually every dealer benefited from increases in product prices, particularly for lumber. They also were propelled by the continued increase in housing starts and record-high spending on repair and remodeling projects.
Mergers, acquisitions, closures, and fast-growing companies cause the PROSALES 100’s membership to change a bit annually, but one thing has been consistent this decade: ABC Supply is No. 1. The roofing specialist’s sales leaped 30.1% higher in 2017 to reach $9.33 billion. A big reason why was its December 2016 acquisition of L&W Supply, a former Top 10 firm that focuses on sales of drywall, metal studs, and ceiling systems.
Builders FirstSource (BFS) again finished second; it has just about finished digesting ProBuild, a former No. 1 it acquired in 2015. BFS is followed by Beacon Roofing Supply, another roofing specialist, which in January completed its acquisition of Allied Building Products. While Allied now is part of Beacon, it shows up at No. 7 on the list because our results cover the 2017 calendar year. And even if Beacon’s takeover of Allied—2017’s biggest deal—had been completed that year, the combination wouldn’t be enough to move Beacon up from No. 3 in the rankings.
The top 10 list continues with BMC Stock Holdings, 84 Lumber, US LBM, Allied, GMS, SRS. The 10th-place spot goes to a newcomer: Foundation Building Materials, a California–based drywall distributor that went public last year. The list of specialty dealers also includes a business that focuses on one product (U.S. Fence), an exteriors specialist (Lansing Building Products), and a holding company whose portfolio includes a bit of everything (Kodiak Building Partners).
All told, specialty dealers make up 11% of the roster but account for 44.1% of the sales. Lumberyards with manufacturing facilities such as truss plants and millwork operations make up 59% of the total and 48.3% of sales. Lumberyards without manufacturing are 30% of the group but contribute just 7.6% of PROSALES 100 sales.
The top 10 grew revenues by 16.2% while the other 90 increased 12.3%. The 10 giants’ $39.71 billion accounted for 71.1% of all 100’s revenues, the first time ever that the top 10’s share has exceeded 70%.
PROSALES magazine provides residential construction companies with information, insights and advice on improving sales and service. For more information on the magazine or PROSALES 100, visit prosalesmagazine.com and click on the “benchmarks” tab.
About Hanley Wood
Hanley Wood is the premier company serving the information, media, and marketing needs of the residential, commercial design and construction industry. Utilizing the largest analytics and editorially driven Construction Industry Database, the company provides business intelligence and data-driven services. The company produces award-winning media, high-profile executive events, and strategic marketing solutions. To learn more, visit hanleywood.com.
Sheila Harris, Hanley Wood, http://www.hanleywood.com, +1 612.860.2173, [email protected]
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