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Building Material Dealers
First Research, Oct 2011, Pages: 10
First Research is the leading industry intelligence company that helps sales teams perform faster and smarter, open doors, and close more deals. First Research performs the heavy lifting' by synthesizing hundreds of sources into an easy to digest format that a sales person can consume very quickly to better understand a prospect's business issues.'
Executive Summary
Brief Excerpt from Industry Overview Chapter:
The building material dealers industry in the US includes about 45,000 companies with combined annual sales of about $230 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 industry revenue.
The industry includes home centers and hardware stores and paint and wallpaper stores, which are covered in separate industry profiles, as well as specialized building material retailers.
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...
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